Debt & Money Problems questions
20 direct answers, each with the short version first and a link to the full guide. For the whole topic, see Debt & Money Problems.
Can bailiffs force entry into my home?
Usually not. For most debts a bailiff cannot force a closed door — locked or unlocked — push past you, or climb in through a window. Forced entry is only allowed for unpaid magistrates’ court fines, or on a return visit after you let them in and then broke a controlled goods agreement.
How long does a CCJ stay on my credit file?
Six years from the date it was issued — paid or unpaid. Pay in full within 30 days and you can have it cancelled, so it never appears at all. Pay later and it is marked “satisfied”, which lenders treat far more kindly, but it still runs the full six years.
Does a debt disappear after six years?
No — it becomes unenforceable, not extinguished. After six years with no payment and no written acknowledgement, most consumer debts are statute-barred under the Limitation Act 1980, so the creditor cannot use the courts. They can still ask you to pay, and a single £1 payment restarts the clock.
Can I go to prison for not paying council tax?
Almost never. Committal is a last resort for wilful refusal or culpable neglect — not for being unable to pay. The council must first obtain a liability order, exhaust other enforcement, and satisfy magistrates that your failure to pay was deliberate. Get urgent advice if a committal summons arrives.
What is the difference between a DMP, an IVA and a DRO?
A DMP is informal — you repay in full at a rate you can afford and creditors can opt out. An IVA is a formal five-year arrangement, binding on everyone once creditors holding 75% of the debt agree. A DRO writes off debts up to £50,000 after 12 months if you have almost nothing.
Will I lose my home if I go bankrupt?
Possibly — your share of the equity passes to the trustee, who can apply to sell. Where your partner or children live there, the trustee must wait at least 12 months, and a sale is unlikely if the equity is minimal. A partner buying out your share can prevent one.
Will my bank refund me if I was tricked into transferring money to a scammer?
Usually yes. Since 7 October 2024 banks must reimburse most consumer scam transfers within five business days, up to £85,000, less a £100 excess. Refusal needs first-party fraud or gross negligence, which is a high bar. Report it to your bank at once and claim within 13 months.
How do I stop debt collectors harassing me?
Put it in writing. Tell the firm to communicate in writing only, keep a dated log of every contact, then complain — formally to the firm, which must respond within eight weeks, and then to the Financial Ombudsman Service. Harassing a debtor is also a criminal offence.
What is Breathing Space and how do I get it?
Sixty days of legal protection: creditors cannot chase you, add interest or charges, go to court, or send bailiffs for qualifying debts. You cannot apply yourself — a regulated debt adviser registers you, so start with StepChange, National Debtline or Citizens Advice.
Who qualifies for a debt relief order?
Qualifying debts of £50,000 or less, surplus income of £75 a month or less, assets under £2,000, and you must not own your home. There is no application fee — it was abolished in April 2024 — but you must apply through an approved intermediary at a debt advice charity.
Which debts should I pay first?
Priority debts first — rent, mortgage, council tax, gas and electricity, child maintenance, court fines and tax. Non-payment there can cost you your home, your energy supply or your liberty. Credit cards, loans, overdrafts and buy now pay later come second however loudly they shout.
What should I do if I receive a statutory demand?
Act within 21 days — and within 18 if you want it set aside. A statutory demand is the gateway to bankruptcy: ignore it and the creditor can petition. You can pay, agree terms in writing, or apply to set it aside where the debt is genuinely disputed.
When can I claim from my credit card company under Section 75?
When you paid by credit card for something costing between £100 and £30,000 and the seller broke the contract or misrepresented it. Your card issuer is jointly liable, so you can claim from them directly — even if the retailer has gone bust or simply refuses to help.
How long do I have to claim a chargeback?
Usually 120 days — running from the transaction date, or from the expected delivery date if that is later, or from when you learned a service would not be provided. Raise it as soon as you spot the problem, because claims outside the window are routinely rejected.
How do I fix a mistake on my credit report?
Dispute it with the credit reference agency and the lender at the same time. The agency must investigate and respond within 28 days. If they still disagree, add a Notice of Correction of up to 200 words, and escalate to the ICO or the Financial Ombudsman.
Is there a minimum debt for an IVA?
No — there is no statutory minimum. What matters is whether creditors holding 75% by value of the debt vote in favour, and whether you have enough surplus income to sustain payments for about five years. The court does not approve an IVA; creditors do.
How do I get a CCJ marked as satisfied or cancelled?
Apply to the court that issued the judgment on form N443 with proof of payment and the £19 fee. Pay in full within one calendar month of the judgment date and the entry is cancelled outright; pay later and it is endorsed “satisfied” but stays six years.
Can I pay my tax bill in instalments?
Yes, through a Time to Pay arrangement. Self Assessment debts of £30,000 or less can usually be spread online without speaking to anyone, provided your return is filed. Larger or older debts, and VAT, PAYE and corporation tax, need a phone call to negotiate.
Can a charging order force me to sell my home?
Not by itself. A charging order secures the debt against the property; forcing a sale needs a separate application for an order for sale, which courts rarely grant on small debts. Most creditors simply wait, and the charge is paid when you eventually sell.
How much can be taken from my wages for a debt?
It depends who is enforcing. County court orders set a fixed deduction plus a protected earnings rate your pay cannot fall below. Council tax deductions follow a statutory table, roughly 3% of earnings at the bottom to about 17% at the top, with no room to negotiate.