In England, the situation of indebted people is slightly different than in Poland. First of all, because in the UK the authorities or citizens do not think that having a debt is something embarrassing.
In this country, debts are talked about openly, no one sees an indebted person as a criminal, and there are many options for getting help paying off their debts. It is believed that debts in the UK are something that can happen to anyone, so there is nothing to be ashamed of. There are often situations when Poles leave England leaving debts behind them, they think that outside the country, creditors will also not seek to collect the debt. What, then, if the outstanding loans in England also apply to you? Is it possible that debts in the UK are time-barred?
If you have the option to pay off your debt, do not hesitate! The longer you delay paying off your debt, the worse your credit history will look, the more you will have to pay off. With time, the situation only worsens, interest rates increase, and creditors may become impatient and take the case to court. This is often the case for water bills or for council tax debt.
If you are in arrears with your debts for a long time, you can expect the debt to be handed over to a collection agency, court and a bailiff (enforcement agent) visit. Such enforcement proceedings include fines awarded by the court, ordinary daily bills, road tickets or council tax. A bailiff in the UK, i.e. the so-called enforcement agent, is a person who deals not only with debt collection, but also legal activities, such as providing documents, e.g. summons to a hearing. It is worth remembering that the bailiff in the UK is not the same person as the debt collector.
What happens if you have debts in the UK and you go to Poland? It must be remembered that Great Britain and Poland cooperate with each other in collecting debts. Even if you are not in the country, the court can issue a European Payment Order. This document allows you to collect debt in any country belonging to the European Union.
How to pay off debts in the UK?
Even if the amount of debt exceeds your financial capacity, it is worth looking for the best exit strategy. There are many options for debt repayment, reduction and even cancellation in the UK. Here are some helpful tips.
Individual Voluntary Arrangement (IVA)
If your financial situation allows you to pay off your debt, although to a small extent, there are two options worth considering. First of all, IVA, or Individual Voluntary Arrangement. This is a formal arrangement with creditors that is approved by the court. After concluding such an agreement, creditors cannot breach its terms, and the indebted person is obliged to pay the debt in fixed installments, the amount of which is selected so that the indebted person can pay off. This solution will be ideal for people who have a steady income and there is no risk that they will lose their source of income. However, for such a formal agreement to be reached, several conditions must be met.
Debt Management Plan – sorting out debts
The second option that allows you to repay your debt is the so-called debt management plan. It is about making an appropriate arrangement with your creditors and paying off your debt in installments that you can afford. Such a solution makes sense only when the creditor suspends the charging of contractual penalties and interest.
There are two options in this solution. You can conclude an agreement with creditors yourself or hire a special company to negotiate favorable terms of debt repayment on your behalf.
There are many possibilities. Choosing the right solution requires an analysis of your case. There are companies on the market that specialize in helping indebted people. One of such companies is https://open-finance.co.uk/ – they are one of the few companies on the UK market that have a certificate. If you need help – you will find it with them.