“Don’t allow your past or present condition to control you. It’s just a process that you’re going through to get you to the next level.” – T.D. Jakes
Creditor Using Pressure
Creditors using pressure outside acceptable norms of collection may be considered illegal.
When a Creditor uses unacceptable creditor pressure, they then may be considered guilty of harassment,
UK law has a view on harassment and what is acceptable, chasing money. Below cite some examples
- Phone Harassment – Speak to your phone provider about blocking calls.
- Approaching you for more money than owed – Discuss this with Police.
- Intimidating behaviour in the public domain – Again discuss with Police
- Threatening court action and imprisonment against you, when it is not your debt – Speak with Licensed Insolvency Practitioner about legality
- Multiple Debt collectors chasing the same debt – Speak with Licensed Insolvency Practitioner about legality
- Disclosure of debt to others for leverage purposes – Speak with Licensed Insolvency Practitioner about legality
If you have suffered any claimable damages through harassment, you can offset your claim against what you owe once it has been accepted.
Creditor Court Action?
A creditor can bring you to court to for an “Involuntary Formal Insolvency Procedure”. Normally, Bankruptcy follows this unless paid. Once you have been served with a Statutory Demand for a debt greater than £750 do not comply within 21 days, you are deemed Insolvent as far court proceedings go.
Creditor Rights in Insolvency Procedures?
Every insolvency procedure aim is to maximise the interests of Creditors. In certain circumstances though, certain proceedings eliminate the debtor’s need to repay certain debts. The Creditor may challenge a bankruptcy claim and has the right to be heard in any bankruptcy filing through the debtor’s attendance at the hearing may not be required.
Creditor Using Pressure – How to reduce it.?
- Firstly, pay the amount outstanding.
- If you are unable to pay in full then do a deal.
- If your Creditor will not agree, speak to a Licensed Insolvency Practitioner for a more formal arrangement. This may be a Creditors Voluntary Arrangement if a company or an Individual Voluntary Arrangement. Both are Legally Binding on Creditors once agreed.
Communicating with Creditors.
In times of high creditor pressure, it is important you maintain communication with creditors to work how you intend to pay them. Though usually difficult, as you also focus your time on the business trading operationally.
AVOID “Loan Sharks and very high-Interest loans”.
For further help on creditor pressure personally, speak with HBG Advisory as soon as possible.