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7. How does a creditor get their money after the court action?
If you have not been granted time to pay, and the court has issued a decree, your creditor can take action against you. The action will depend on a number of things including, how much money you owe, what kind of debt it is and your personal circumstances.
In Scotland, the enforcement of debt following court action is called 'diligence'. There are a number of diligences including earnings arrestment, bank arrestment and attachment. Your creditor can also take steps to make you bankrupt. |
Before they take any action they will normally ask a sheriff officer to serve you with a charge for payment and a Debt Advice and Information Package.
What is the Debt Advice and Information Package?
There are a number of occasions when a creditor is required by law to give you a leaflet called the Debt Advice and Information Package ( DAIP).
It is required if they are taking steps to recover the money you
owe them through diligence, or if they intend to make you bankrupt.
What is a charge for payment?
A charge for payment is a formal document warning you that unless you pay your debt, or apply for a time to pay order within 14 days, your creditor is entitled to enforce payment. The document is normally delivered to you by a sheriff officer.
Most debt enforcement actions require a charge for payment. |
What is a time to pay order?
You can apply for a time to pay order after you have received a charge for payment or an arrestment has taken place. You apply to the court and must not owe the creditor more than £25,000. The order gives you time to pay what you owe to the creditor over a period of time. A time to pay order is similar to time to pay directions and time orders but is only relevant once a charge has been issued.
Once a time to pay order has been granted, as long as you keep to the agreed payments that creditor cannot take further action against you but other creditors may be able to.
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