Debt FAQ

Should I worry if a creditor says that they have not heard from you?

 Do not worry. This can be a way that creditors use to put pressure on you to make a payment to them. We keep a detailed log of all communications with each creditor on our database and we will have evidence to that effect. If this happens simply take a name and we will contact the creditor concerned with the necessary details.

What happens if a creditor says that they have not received payment from you?

If we are arranging an informal debt solution on your behalf, provided we have received your agreed payment on the required date, we will send every creditor their payment each month. Because we send you a detailed statement every month, which lists the payments sent to each creditor, you will be able to see exactly what has been sent to each creditor. If you are in any doubt, or a creditor says they have not received their payment, then contact us immediately.

What should I do if a creditor continues to telephone me? 

This is often one of the most worrying concerns when you first begin the process of entering into an arrangement with creditors. It is important to remember to use the script left by your advisor. Tell creditors that Debt Free Me are your legally appointed representatives and that Debt Free Me will be contacting them, with a proposal, in due course. If calls continue then we advise you to take the name of the representative concerned and we will contact them and update them of your situation.

How do I open a new bank account?

If you have any debt with your bank you will need to open an account with a bank that you do not have any debt with. All banks are required to offer basic bank accounts. These are accounts that do not offer any credit facilities e.g. an overdraft facility or a cheque guarantee card. These accounts offer the basic facilities of standing orders and direct debits as well as a cash withdrawal card. Some also offer the facility of a debit card. It is advisable to look at our website to see how basic bank accounts work, and through a link with the Financial Services Authority, a list of all the banks and details of their basic accounts.

What do I do with letters I receive from a debt collection agency or a solicitor?

 Normally, provided that we already have their details, you would not need to send the letter on to us. However if it is someone saying that they have had the debt passed onto them then forward it onto us immediately. If you are in any doubt then send any correspondence onto us with your reference number clearly written on it.

Should I agree to a creditor wanting to visit my home or asking me to go to their offices? 

Contact us at once and we will explain your intentions to the creditor concerned. You do not have to agree to such a visit.

What if a creditor threatens to send a bailiff?

Creditors sometimes use the threat of bailiffs to put pressure on you to make a payment to them. However bailiffs usually only become involved if there is a breach of a court order e.g. if payments have not been made following the issuing of a County Court Judgement. Contact us if you are in any doubt as to what to do.

What should I do if my creditors threaten to take me to court?

Provided that you are dealing with your debt, and communicating with your creditors, it is unlikely that a creditor will pursue court action against you. As a Debt Free Me client you can be assured that communication with creditors is regular and that they are informed at each stage of your case, making court action unlikely.

What is the situation if I have a County Court Judgement against me?

The most important thing is that you must keep up your payment as arranged by the court. These payments are then included in your expenditure. If an IVA or Protected Trust deed is being prepared for you, it is important that you continue to make the CCJ payments until the IVA or Protected Trust Deed is agreed, at which time you will be informed.

What happens if I forget to tell you about a creditor?

Let us know immediately as this can effect the whole arrangement. Make sure that you check your draft copy of your Statement of Affairs or draft IVA proposal to make sure that all your creditors are listed.

What is the situation if my IVA or Protected Trust Deed proposal is rejected by my creditors?

It can sometimes happen, that for whatever reason, an IVA/PTD proposal is not agreed by the creditors. If such a situation arises then an alternative solution will be proposed to your creditors, usually an informal arrangement.