How To Stop Bailiffs
Should the possibility of dealing with bailiffs be causing you concern it's crucial to take proactive steps.
How you can stop Bailiff action with an IVA
Dealing with bailiffs can be a daunting experience, particularly when facing financial challenges. An Individual Voluntary Arrangement (IVA) stands as a powerful tool to help individuals regain control of their financial situation and prevent bailiff interventions. We will explore how an IVA can serve as a protective shield against bailiffs, addressing key concerns such as the possibility of forced entry, mental health considerations, and the potential outcomes when faced with minimal possessions.
Understanding an IVA
An Individual Voluntary Arrangement is a legal agreement between an individual and their creditors, providing a structured plan to repay debts over a fixed period. By entering into an IVA, individuals gain protection against bailiffs and legal actions while working towards financial recovery.
What Happens if I Have Nothing for Bailiffs to Take?
One common worry is the fear of bailiffs seizing possessions, but in cases where there are minimal assets, an IVA can offer relief. An IVA focuses on creating a manageable repayment plan based on affordability, ensuring that individuals can meet their financial obligations without subjecting them to asset loss.
Can Bailiffs Force Entry?
The question of bailiffs forcing entry is a valid concern for many. In general, bailiffs do not have the right to force entry into your home for most debts. However, understanding your rights and protections under an IVA is crucial to ensuring that your home remains secure.
Bailiffs and Mental Health:
Dealing with debt and the presence of bailiffs can take a toll on mental health. An IVA not only provides a financial solution but also offers emotional relief. The structured repayment plan allows individuals to focus on their well-being without the constant fear of bailiff actions.
Can Bailiffs Refuse a Payment Plan?
Under an IVA, bailiffs must adhere to the agreed-upon payment plan between the individual and creditors. This legal arrangement protects individuals from the arbitrary refusal of payment plans by bailiffs, providing a structured and manageable path to debt resolution.
What Can Bailiffs Take?
While an IVA shields individuals from unnecessary loss, understanding what bailiffs can take is essential. Typically, bailiffs may seize non-essential assets, excluding items necessary for daily living. An IVA helps define the parameters of what can and cannot be taken, ensuring a fair and reasonable resolution.
Can a Bailiff Force Entry for Council Tax?
Council tax arrears are a common reason for bailiff intervention. However, with an IVA in place, individuals gain protection against forced entry for council tax debts, allowing for a more controlled and structured approach to repayment.
IVA's
FOR DEBTS OVER £6,000
An Individual Voluntary Arrangement (IVA) can assist you in eliminating debts that are currently beyond your financial means. Debts included in an IVA can be cleared within a set time (usually 5 to 6 years).
An Individual Voluntary Arrangement (IVA) is a lawful procedure that offers protection from unsecured creditors. It involves establishing a legally binding repayment agreement with them, overseen by a licensed insolvency practitioner.
One of the advantages of an IVA is its fixed duration, typically spanning 60 months. Following this period, any remaining debts are discharged, providing you with the opportunity for a new and revitalised financial beginning.
Moreover, interest and charges on your accounts are halted, and your creditors, including Bailiffs, are entirely prohibited from reaching out to you directly.
An Individual Voluntary Arrangement (IVA) is a form of personal insolvency administered by a licensed Insolvency Practitioner (IP). Opting for an IVA as your preferred method for addressing debts entails our referral to an IVA advisor, who will guide you through the entire initiation process.
Debt Management
FOR DEBTS OVER £2,000
With Debt Management, you can consolidate all your unsecured bank loans, credit card repayments, and other debts into one manageable monthly payment.
Primarily, the burden of managing your paperwork and day-to-day interactions with creditors is lifted. Additionally, we will aim to negotiate the suspension of charges and interest on your accounts to prevent the escalation of your debts.
The primary benefit lies in making a single, manageable monthly repayment, which is then disbursed to your creditors on your behalf. All correspondence between you and your creditors is managed, eliminating the stress of direct dealings with them. After incorporating your essential living expenses into your financial statement, you contribute only what you can afford. This ensures that you can prioritise crucial bills while the remaining responsibilities are taken care of on your behalf.
Debt Relief Orders (DRO) – For those with little spare income and non homeowners
A Debt Relief Order (DRO) is an additional formal legal procedure overseen by the Official Receiver, designed for individuals with disposable income, assets, and debts all falling below specific thresholds.
A Debt Relief Order (DRO) is a method within personal insolvency.
DROs offer a solution for managing debts if your total indebtedness is below £30,000, your disposable income is limited, and you do not own a home.
Eligibility for a DRO is contingent on meeting specific criteria aligned with your overall circumstances. If you qualify and choose a DRO as your preferred option, we will guide you to an authorised intermediary for further assistance.
Bankruptcy – For those with little or no disposable income
Before moving forward with bankruptcy, it's crucial to consult with a professional debt advisor to ensure informed decision-making.
Established to address severe debt situations requiring urgent expertise, Bailiff Advice Online is dedicated to offering guidance on both preventing bankruptcy and navigating the entire bankruptcy process. Following a consultation with a professional debt advisor, you may discover that bankruptcy is not the optimal solution, and there are alternative paths to consider. Our aim is to assist you in determining the most suitable debt solution for your circumstances.
Bankruptcy serves as the well-established formal legal process for discharging overwhelming debt. This procedure falls under the jurisdiction of the Official Receiver.
Which debts are worrying you?
We can help get you financially unstuck.
Here's an example of how an IVA can help
Imagine you have the following debts:
Loan 1 |
£11,152 |
Loan 2 |
£2,226 |
Loan 3 |
£302 |
Credit card 1 |
£2,395 |
Credit card 2 |
£648 |
Council Tax |
£172 |
Payday loan |
£1,408 |
Total amount owed: |
£18,303 |
Customer repayments before & after an IVA
Reduced by 80%
* monthly payments are based on individual financial circumstances
Limitations
Not everyone qualifies for an IVA. To be eligible, you typically need a certain level of debt (usually £6,000 or more) and a regular income to make the agreed-upon payments.
Entering into an IVA will have a negative impact on your credit rating. This can make it challenging to obtain credit in the future, and the IVA will remain on your credit file for six years.
If you own a property with equity, you may be required to release some of that equity for the benefit of your creditors. This could involve remortgaging or selling the property.
IVAs involve making fixed monthly payments based on what you can afford. If your financial situation changes during the IVA period, you must inform your insolvency practitioner and get approval for any adjustments.
We have been helping thousands of people just like you.
Bailiff Advice Online is a trading style of My Debt Plan Ltd.
Registered address 2nd Floor Blenheim Court, Cheadle, Cheshire, England, SK8 2JY Company Registered in England and Wales Number 10992838 Data Protection ZB284067.
My Debt Plan Ltd provides insolvency solutions to individuals, specialising in IVA’s. All advice given is provided in reasonable contemplation of an insolvency appointment. Where you are not suitable for an IVA, we may refer you to one of our trusted partners who specialise on alternative solutions.
You will be contacted by Council Tax Debt Support.
Kevin Mapstone is a licensed insolvency practitioner in the UK by the Insolvency Practitioners Association (IPA).
To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
*Our advice on your options is always free and we will notify you if a solution you choose has a fee associated with it.
