What is debt?

Bailiffs

A bailiff, alone or as a team visit your home or place of business to collect money or goods as a result of a court order against you for none payment of a debt.

If the visit of the bailiff fails, or the creditor decides against using one, the creditor may take other actions which can include;

• Taking a levy against your wages or salary direct with your employer in which case part of your earnings will go direct to the creditor until the debt is paid in full. Assuming the creditor knows where you work. You can object to this is you are low paid or work part time.

• Taking the money direct from your bank account (called a garnishee order) assuming they know where your bank is, it's details and you have money in the account to pay.

• Issue bankruptcy proceedings against you assuming the debt is at least £750 (£1,500 in Scotland) For more information see our page on bankruptcy

Private and Business creditors usually send in Bailiffs as a norm, state organisations such as the Inland Revenue often go direct to bankruptcy proceedings. A lot depends on the creditors ability to find your current residence as many debtors move on and become untraceable.

When a bailiff arrives he will explain his purpose, and can collect monies due at this point. However, this will now include his fees as well as court and other legal costs on top of the original debt. If the original debt was small the final cost may well be double or more than you originally owed.

The bailiff will normally expect cash payment, although some may take credit or debit card payments which they clear by a telephone call to their office. They do not have to take part payments but some do so if a substantial part is paid and the balance can be paid later in the day or within a few days.

Perhaps some third party such as a friend or relative may make the payment on your behalf as the circumstances of a bailiffs visit are very traumatic.

If you are unable to pay the bailiff in full he will remove goods to at least the value of the debt. The value of goods the bailiff may realise at forced sale is low so a £400 TV may be worth £50 in real terms and you have no control over that sale. He can only remove goods which you and you alone own outright (not on hire purchase, rental or lease).

He has no automatic right of entry to your premises but may obtain a court order so to do, which he will attempt to do (adding more changes) if you refuse his request.

He will need proof of ownership of everything he sees of value which he could remove. Proof means receipts in someone else's name, such as your partner, spouse or children.

He will give you a receipt for things he removes which are normally sold to pay the debt, in theory if there is money left over this is paid back to you,. but usually the bailiff takes all he can and this ends the matter.

The court order, the attending of the bailiff and the seizure of goods to repay the debt ends the matter but does not necessarily clear your name as the CCJ (county court judgement) lies on file for 6 years. You can apply for it be be removed although the creditor can argue the sale of the goods did not discharge the debt in full.

By paying the bailiff in full you can apply to the court for the judgement to be marked settled and removed, however credit reporting agencies such as Equifax and Experian may still retain the judgement on their files which may affect you obtaining future credit. Contact the agency supplying proof of settlement and ask for it to be removed.

Useful web sites

• The Enforcement Services Association www.bailiffs.org.uk/

• http://www.insolvency.co.uk/legal/options.htm provides a wide range of information on insolvency, bankruptcy and options.

• http://www.helpwithdebts.co.uk/bankruptcy