Debt Myths
It is incredible just how many myths there are floating about in the ether, this is going to be a page that I will come back and add to as often as possible.
Can I Go To Prison For Being In Debt?
Wow….this is a really scary one. It extremely rare for anyone to go to prison for being in debt, there are exceptions such as:
Inland Revenue arrears
Customs and Excise (vat)
Council Tax – In extreme cases only
If you were to review the vast majority of cases where someone has gone to jail where debt is involved, you will find that the conviction was due to deception or fraud. There have been cases where someone has gone to prison due to unpaid council tax but it would have been because of a point blank refusal to a judge and this refusal would be as a statement of unfairness or protest.
Can I Be Blacklisted By The Creditors For Being In Debt?
No…..There is no such thing as being put onto a list. As we move through life we are given points by computers, if we stay regular with our repayments, borrow what we can afford and use credit on a regular basis, we are awarded more points, if we either misuse the credit system or fall on hard time leading us to miss payments, points are deducted. All creditors then look at the points that have been awarded and make an informed decision about lending or not lending to you. This is a simplified version of how it works, if you would like more information please have a look at Experian.
If I Don’t Pay My Creditors, The Bailiffs Will Come To My House
It’s incredible just how many people live in fear of the bailiffs coming to there property, over the years creditors have allowed these myths to stay in the public domain because it works in their favour no matter what the truth is. If a debt has gone to collection there is a possibility that a collector could come to visit, this does not mean that they are a bailiff although I still hear from clients on occasion that they are told differently. For a debt to end up in the lap of a bailiff there would have been court action and you would have had to of failed to keep to the payment agreement set by the court. The answer to this is yes, it is possible – although if you grab the bull by the horns in this case the debt and try and deal with it head on then there should be no reason why anyone would visit you at home.
If I Am In Debt, Will Everyone At The Property Where I Live Will Be Affected
No…….you could be linked via your credit file to other people at the property but the easiest thing to do would be to visit experian or equifax and register a notice of disassociation, this will let creditors know that you have no financial links to the people you have placed on the register. It is a straight forward thing to do, fill the on-line form out and clicl on the submit button.
When I Die – Will All Of My Debt Gets Written Off
No…..it is as simple as that. I have come across creditors that will just write the debt off but this doesn’t happen all of the time. The debt will have to be settled by the estate which is made up of any savings, assets stocks, bonds etc. This is one of those situations where good legal advice should be sought, dont listen to the advice that friends, family or creditors give you – find out for yourself from a lawyer or solicitor who specialises in this area.
I Will Loose Everything If I Go Bankrupt
Bankruptcy Is The Only Option When You Are In Debt
Debt Management Companies That Charge A Fee Are A Rip Off