There could be lots of consequences if someone refuses to pay your debts. When a person took a loan the bank can initiate legal action against you under the circumstance where the debtor intentionally refuses to pay the debt.
Debt payback is critical because if it is not completed on time, it will have a significant negative impact. In legal action the creditor can take against the debtor may lead to acquiring personal belonging.
The person who is behind on their bills/debt is called the Customer delinquent debts, (The term delinquent refers to a person who is behind their bills. When someone is delinquent, it means they have missed payments on their financial obligations, such as a loan, credit card, or bond. This signifies that a borrower’s payments are not made on time to pay off their debt(s) The reason could be any things like credit card freezing or something else.
There is a prolonged legal format of recovering the debt from the debtor. In the situation where a person doesn’t respond to the bank calls to repay the debt. In such a situation where the debtor is not responding to the bank. Then the bank goes for the DCA ( debt collection agency), A debt collection agency, some debt collectors are frequently employed by debt collection organizations, while some work independently. Some of the famous Debt collection agencies working in the UK are Therstepchange, National debt lines, etc who offer various debt relief schemes designed for managing your debt some of the options offered by them are:
- Manage finacial situation
- Debt consolidation loan
- Debt management solutions
- Insolvency and bankurpctcy…etc.
Debt collection Agencies working process in paying of debts:
Step1: The DCA collects your data from BFSI or Banks.
The DCA collects data of borrowers from the bank or BFSI (Banking, Finance Service, and Insurance), which is the first stage in debt collection.
The data contains lots of information about the debtor/borrower like their due amount and their payment history.
Once the DCA collects the data they go for the Telecalling process where they call the borrower on the registered phone number either manually or through automated software.
Step3: Collection of debt through fieldwork
In situations where the borrower/ debtor doesn’t respond to the call reminder then this option comes into consideration in which the agency sends their field staff to the registered address to collect a debt.
In case they don’t respond they may approach the guarantor for the borrower also.
What does DCA do if the debtor does not respond their call?
In case the DCA doesn’t receive any response from the debtor in such cases DCA goes for the CCJ(Country Court Justice)
The CCJ has the possible up hand as it’s associated with the law and can go into your accounts and directly deduct the debt from your salary and income this is called Attachment of earning.
The last option left with the CCJ is the Bailiff when there is no trace of the income or the work is done in cash. The bailiff has to intervene to collect the debt. The bailiff has the right to get into your property under certain circumstances.
It becomes very important to understand that missing your debt and not paying them on time intensionally will truly make the financial condition even worse as once the bailiff is involved they can forcefully get your belonging only in certain circumstances. So the best option is to keep your debt repayment clear in time.
Here is the list of things Bailiff can and can’t take if you don’t pay your debts.
If you let bailiffs into your home, they might begin seizing your items without first establishing a controlled goods arrangement.
Bailiffs have the authority to seize expensive and luxury items such as:
- Consoles for gaming
Bailiffs are unable to take objects that you require on a daily basis, such as:
- Refrigerators, freezers, and washing machines are examples of white goods.
- Tools and equipment for work or study having a total worth of less than £1,350
- Animals as pets or as service animals
- Fittings and fixtures
- Toys for kids
From the above, we can state that there is a specific format in managing the debt as there are some circumstances that will define what happens if you don’t pay your debts. The procedure we explain needs to be managed properly in fact it needs to if you don’t pay your debt the chance of getting yourself assigned a bailiff gets higher. So it’s better to avoid such conditions where you have to face the bailiff. Although this condition is last, one intentionally refuses to give the debt.