Debt Collectors Seek Court Action

speedy01

Hi all.

Im a sole trader that has gone from worst to "worst-est". The company I owed, DHL, has passed my debt to their debt collector. I owe them under just £800.

Im about to stop trading, I'm out of a job and my bank account is in minus. My wife pays for bills, child care and to put food on our table. Im back to seeking a job and wanting to go back to college to upgrade my life hoping to get a job just to pay my debts.

As I stand I do not have any money to pay anyone. The debt collector seek to take me to court but how can I give back want I do not have? I have no assets; nothing.

Will I go to jail? What will happen when I appear in court?

Thanks.

[Deleted User]

No being in debt is NOT a criminal offence, anyone tells you otherwise their just ignorant

Recommend you seek professional advice from the likes of National Debtline

Don't worry if it goes to court, you'll have the option to just show proof to a judge what you have incoming and they set a repayment on that but take professional advice first, get facts and all the options and then make a decision on next step because everyone is different with their levels of debt and affordability

Please don't worry. It only makes problems worse.

speedy01

Deleted%20User wrote: »

....
Don't worry if it goes to court, you'll have the option to just show proof to a judge what you have incoming and they set a repayment on that but take professional advice first, get facts and all the options and then make a decision on next step because everyone is different with their levels of debt and affordability

Thanks. There is nothing coming in rather than family members borrowing me their money and interest keeps adding to what I owe the bank. But I'll ring the National Debtline and see how it goes but I think I'll go to court.

paddyrg

You can only go to prison for criminal, not civil things. The difference is if it is the CPS taking you to court after being arrested and charged vs some debt collectors asking the court to tell you that you owe money. Worlds apart, unless you murder a debt collector. You will not go to prison, final. Worst that will happen is that you will get court judgements against you which will trash your credit file for 6 years, so no mortgage or loans. You could possibly have to sell some assets too, if you have any.

Now, you owe money, and they can use the courts to chase you for that, but you can only give them what you can give, if you don't have money right now, they will have to wait. They will threaten a lot of things, they may use ambiguous wording and try to scare you into paying, but at the end of the day, they can't get money that doesn't exist.

What they want is for you to offer something, set up a payment plan of some sort. If you do end up in court, the judge will expect you to make since attempts to repay, even a small regular amount. You could make a low offer, whatever you can afford.

speedy01

paddyrg wrote: »

You can only go to prison for criminal, not civil things. The difference is if it is the CPS taking you to court after being arrested and charged vs some debt collectors asking the court to tell you that you owe money. Worlds apart, unless you murder a debt collector. You will not go to prison, final. Worst that will happen is that you will get court judgements against you which will trash your credit file for 6 years, so no mortgage or loans. You could possibly have to sell some assets too, if you have any.

Now, you owe money, and they can use the courts to chase you for that, but you can only give them what you can give, if you don't have money right now, they will have to wait. They will threaten a lot of things, they may use ambiguous wording and try to scare you into paying, but at the end of the day, they can't get money that doesn't exist.

What they want is for you to offer something, set up a payment plan of some sort. If you do end up in court, the judge will expect you to make since attempts to repay, even a small regular amount. You could make a low offer, whatever you can afford.

I can offer, per month, £20. You think they will accept that?

Brassedoff

paddyrg wrote: »

You can only go to prison for criminal, not civil things. .

Not wanting to throw this thread sideways, but there's a host of things you can be sent to prison for that are not criminal.

Simplest one, don't pay your council tax, you end up in prison and from September on a tag for 12 months!

In the OP's case, are you a sole trader or limited company, if a sole trader, they can take you to court and if they win get a HCEO who has massive powers. Do an income and expenditure, send it to the DC, who if registered have to take it into account. Plus the creditor. The wait to see what happens

speedy01

Brassedoff wrote: »

Not wanting to throw this thread sideways, but there's a host of things you can be sent to prison for that are not criminal.

Simplest one, don't pay your council tax, you end up in prison and from September on a tag for 12 months!

In the OP's case, are you a sole trader or limited company, if a sole trader, they can take you to court and if they win get a HCEO who has massive powers. Do an income and expenditure, send it to the DC, who if registered have to take it into account. Plus the creditor. The wait to see what happens

Hi. I do not understand your abbreviations like "HCEO" etc. And yes Im a sole trader. Not sure what you mean by "if they win". I have no money, point blank. But I can repay £20 per month. And as what "paddyrg" says I cant give what I dont have. But I'll see what they say on monday.

Annisele

An HCEO has powers to take your assets - but if you don't actually have any assets, there's nothing for them to take.

If £20 a month is all you can afford, write to the debt collectors and explain that - with evidence of your income and expenditure. If they have any sense, they'll think about whether they're likely to get more or less than that if they take you to court. If they think a court wouldn't award more than £20, they're likely to accept £20 a month as a temporary measure, with the plan of reassessing once you get work.

Wywth

speedy01 wrote: »

.. I have no money, point blank. But I can repay £20 per month. ...

How? :huh:

Such inconsistent remarks will usually lead to short thrift from any creditor or judge should it get that far.

I suggest you pop over to the Debt Free Wannabe board and post your SoA over there (details of how to do this are in one of the sticky threads there).

I'm sure you will get some help there