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5. What legal steps can creditors take against me?
If you do not pay the money you owe to your creditors they can take legal action through the courts to enforce the payment of debts. This includes making you bankrupt.
A creditor will usually issue you with a final notice before taking legal action. This tells you in writing that you have failed to pay what you owe and gives you a last opportunity to do so.
If you do nothing, your creditor is likely to raise a court action against you and you will have to repay the debt with added interest and, usually, the creditor's expenses as well.
There are several legal actions that creditors can take to collect the money you owe them. The most usual actions are arrestment of your earnings or bank account, or attaching items you own. Less common methods used include placing an inhibition on your property or ejection from your home.
Secured creditors such as your mortgage provider can take steps to repossess your home.
Remember: unless you tell your creditors you are having difficulties, they won't know. You should seek advice at the very earliest opportunity to help you deal with your debt problems. |
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