Support for the people of Medway

Thank you for your responses to our Debt Q&A Session. We’ve managed to answer the following questions. If your question isn’t here, don’t worry - we will be adding more later 😊

 

What is breathing space?

Breathing space is a 60 days' protection from creditor action on some debts through the government-backed scheme.

Breathing space isn’t a debt solution, but it will:

·         pause most recovery action and contact from creditors on debts that qualify for the scheme

·         freeze interest and charges on qualifying debts

·         give you and your client time to explore debt solutions

 

Can I apply for a DRO if I own my home?

Afraid Not. You cannot own any assets if you’re looking at applying for a DRO. Read more out the Eligibility Criteria for a DRO.

 

Will a DRO prevent me from getting credit?

You can still apply for up to £500 ‘credit’ without having to inform the creditor of your DRO.

 

Is my Mortgage at risk if I’m in debt?

Not completely. You have signed an agreement with your mortgage provider to make regular payments to clear the outstanding balance by the end of the agreed term.  Their main concern is having the money repaid. Your mortgage could be at risk if you miss payments and prioritise other bills.  

 

Can I be sent to Prison for Failure to pay Council Tax?

when a local authority uses bailiffs, and there are either no goods or not enough goods to pay the council tax debt, the local authority can apply to the magistrates' court for a warrant committing the client to prison. However, in most cases, this would be more likely if you’re deliberately not paying for Council Tax.

 

I suffer with Mental Health – Are Bailiffs supposed to make allowances for this?

Yes. You would need to provide evidence of your Mental Health in the form of a Doctor’s Note, a Disability Benefit Letter, for a Council Tax bill showing the adults in your home.

Send the bailiffs copies, not your originals. You wouldn’t want to risk the information being lost.

 

Vanquis Bank have told me that my loan with them is a Priority Debt. Is this correct?

No. Priority debts that can cause you particularly serious problems if you don't do anything about them. For example, disconnection or loss of home.

Unless your Vanquis Bank loan is secured against your property, it would not be classified as a Priority Debt.

 

 

 

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