Navigating debt can be overwhelming, especially if you have concerns about creditors taking action against you. At MoneyPlus, we provide a range of debt help services and are here to support you through your journey to becoming debt-free.
County Court Judgments (CCJs)
One area we can offer advice and support with is CCJs. If you fail to keep up with payments on a debt you owe, your creditor may take a CCJ against you, which means the court has formally confirmed you owe the money. Your CCJ will come through by post, and will include details of how much you owe, how to pay and the deadline. You then have 14 days after you receive it to respond.
If you receive a CCJ, it’s important that you don’t ignore this as this can have serious consequences on your financial situation and could lead to further action. Our team can help you through the process of responding to a CCJ and talk you through the options available to you for paying off the debt.
Inherited debt
The death of a loved one is never easy and your experience can be made even more stressful if the person had unpaid debts. However, it is important to understand that personal debt doesn’t pass on to relatives. Any outstanding debts will be settled from the deceased’s estate, which consists of their belongings and assets.
There are certain types of debts that won’t be paid off when someone passes away. For example, if you take out debt with another person, known as joint debt, but that person passes away before the debt has been repaid in full, you will be liable for the remaining balance. Equally, if you inherit a property with a mortgage or home equity loan, you may need to continue payments or settle any debt associated with the property.
Our experts are here to answer any questions about this type of debt and discuss solutions available to you.
Benefits
When you’re on low income, debts can be especially difficult to pay off which is why you should consider whether you qualify for benefits. There are several benefit payments available in the UK to help support you, including:
- Universal credit – a standard, overarching benefit for most local councils
- Jobseeker’s allowance (JSA) – for those out of work and actively looking for employment
- Income support – for those on low income or earning no money at all
- Housing benefit – for those on low income who need support paying rent
- Child benefit – a certain amount of money assigned for every child you have
Breathing Space Scheme
As the name implies, the Breathing Space Scheme gives you the time and space to deal with your debts, offering protection from your creditors. There are two different types of breathing spaces:
- Standard breathing space – this lasts up to 60 days, during which time your creditors can’t contact you or take legal action against you over unpaid debt. Most interest fees and additional chargers are also frozen.
- Mental health crisis breathing space – this is only available to someone receiving mental health crisis treatment and it has stronger protections. It lasts as long as your treatment does, plus an additional 30 days.
Here at MoneyPlus, we can offer advice and help with debt management. Don’t hesitate to get in touch with one of our experts today.