FAQ

What if I receive a final demand?

Before a creditor can take you to court for the non-payment of debts he has to send a final demand by law notifying you of his intention. This will give you 7 days in which to take action. It is important not to ignore the final demand, as any contact from you is likely to prevent your creditor from taking further action. Therefore, even if you cannot afford to settle the bill, you should ring your creditor to explain the situation.

If you have made a suitable payment arrangement such as a Debt Management Plan or an IVA, all of your credit debts should be included in the plan so creditors should no longer be threatening legal action for the recovery of debts. This is why it is important to ensure that you notify your debt advisor of all your outstanding debts so that all qualifying debts can be included in your repayment arrangement.

Once you have set up a Debt Management Plan or an IVA, you should let your debt advisor know if you receive any final demands from creditors who are included in the repayment plan. Your debt advisor will then deal with the matter on your behalf.

It is worth noting that even if a creditor takes you to court you will still have an opportunity to explain your financial situation to the court and make an offer of payment based on what you can afford.

Give us 5 minutes and we'll give you:

  • Advice on all debt solutions that you may apply for
  • If your debt can be written off
  • Explain any interest or charges that can be frozen
  • Honest, no obligation advice

Some solutions, such as a Debt Management Plan or an Individual Voluntary Arrangement involve costs when the plan is set up.  These costs are there to cover the expenses and work undertaken on your behalf.  You will always be told clearly about any costs upfront.  Other solutions, such as a Bankruptcy incur costs which are payable to the Court; Debt Relief Orders incur costs which are payable to the Insolvency service.

Debt Direct is a trading name of Tatstar Limited. Tatstar holds a consumer credit license to offer debt counseling. Your enquiry will be passed to a selected third party who will contact you to discuss the most appropriate solution for your circumstances.