Default notices and what you need to do

If you are in debt and your creditor intends to take court action or pass your case to a debt collection agency, you may find you will receive a default notice. A default notice is a formal letter from your creditor or Mortgage Company, stating that you have not paid any payments for quite a long time. This does vary from company to company and you can receive a default notice when your payments are in arrears for 3 months or more.

After receiving a default notice your case will either get passed to a debt collecting agency or a solicitor:

The debt collecting agency will pursue you for the debt. They are unable to take possession of any items.

The solicitor can go down the legal route and you can receive a CCJ (county court judgment), and bailiffs can be instructed.

In all three instances you must make a budget plan of all your income and expenses. Once you have completed this, send your creditor a copy of this, recorded delivery, showing that you can afford to pay realistic instalments. Start paying the instalments straight away, but make sure they are affordable.

Your creditor does not have to accept the reduced payments and may start legal proceedings via the court. You must keep up the payments. If you do go to court and you have made reduced payments, this will look better than not paying at all; make sure you take your budget planner and any other correspondence.

Also see:

Debt collecting agencies
Quick property sale
County Court Judgment

Contact us or apply online, and see how Quick Purchase can help or advise on your default notice.