How to Repair your Credit: Consolidating Credit Card Loans

If the bills seem to be getting bigger ever month, budgeting can help you begin to save money, but it can’t help you make your previous debt disappear. However, you can save yourself from financial ruin, even if you’re trying to pay off 20 different credit cards—consolidate your credit card loans. This step is easier than you may think and can truly help you repair your credit. First, make a list of all of the credit cards you own, along with the debt on each and the APR for each. If you must have a credit card, choose the own with the lowest interest rate and set it aside. This will be the credit card that you still use, and it should only be used for emergencies and when you absolutely have no other way to pay a bill. Keep in mind that you’ll have to pay the minimum on this card every month and that you’ll want to try to pay the complete balance when possible. Next, contact a debt consolidation company. Talk to a representative about your financial needs and about the debt you’ve already incurred. This company will work with you by paying off all of your credit card debt. You will then make one larger payment per month to this company. When this happens, cut your cards and close your accounts! This will save you from incurring more debt and repeating the situation! You can also consolidate in other ways. If you have a credit card with an extremely low interest rate, consider transferring all of your debt to this one card, keeping in mind that there may be transfer fees. You can also take out a second mortgage to pay off your cards if you have a low interest rate in this part of your financial portfolio. The key is to work hard at paying as much as possible ever month to avoid interest. Doing this will help you to repair your credit and stay out of debt in the future!

Reducing payments or suspending a Bailiff's Warrant on a County Court Judgment

WHEN DO I NEED TO MAKE THIS KIND OF APPLICATION? Reducing payments or suspending a Bailiffs Warrant is done by debtors who fail to comply with a County Court Judgment. This means that either the County Court already made an order for you to pay a particular amount each month but you cannot afford it or your creditor issued a "Warrant of Execution" and you have been visited by the County Court Bailiff. Making this application often requires two sets of fees to be paid but that should not be the case. Inform the authorities immediately if you have been charged illegally. APPLYING TO REDUCE AN INSTALLMENT ORDER Once your creditor take a court action, naturally, your debt will balloon into something that you may not be able to afford. To deal with this, you must apply for a reduction of an Installment Order, which is also done in court. You will file an N245 form on your local County Court and pay £30.00 for the processing of your application. Some circumstances, however, may allow you to file the application without having to pay any fee. These include being on a low income status and enjoying several benefits. One good alternative to make your creditor agree on a reduced payments is to talk to him directly. Without you going to court, you are obviously saving not just money but time and effort as well. APPLYING TO SUSPEND A WARRANT OF EXECUTION A "Warrant of Execution" is issued to debtors who failed to pay their financial obligations set by the court. This can be applied by the creditor against you, allowing a bailiff to break into your house and take any of your possessions, which will be given up for auction. A notice from the bailiffs saying they intend to visit will actually tell you that a "Warrant of Execution" has been filed against you. But you do not have the responsibility to let the bailiffs inside your home so fpr as long as you refuse their entry, this is quite easy to manage. YOU DON'T HAVE TO LET THE BAILIFF IN As mentioned, you do not have the responsibility to let the bailiffs inside your home. They cannot force you to allow them unless you let them the first time. It is also unlawful for the bailiffs to break into your house. WHAT IF I HAVE ALREADY LET THE BAILIFF INTO MY HOME? Allowing the bailiff to go inside your home the first time gives them the ticket to go back at any other time of the day to take your things. If this happens, the only thing that you can do is to keep guard on what the bailiffs are allowed to do and what are not. Naturally, they cannot take away basic domestic needs such as clothing, bedding, or furniture. They also cannot take equipments that you use in your profession or vocation. Usually, the bailiffs do not take things on first visit. They will just inspect your house, list the goods they can take away from you, and have you sign a "Walking Possession Agreement". On their next visit, whether it's a peaceful or harsh one, they will take away any or all of those listed on your agreement with them. Regardless if you have aleady signed an agreement with the bailiff, you can still file a suspension of the warrant in court to protect your valuables. WHAT IF THERE ARE NO GOODS TO TAKE? If the bailiffs decide on their first visit that your goods are not valuable enough to cover their costs for coming, they will go back to the court, return the warrant, and leave a notice that your goods have insufficient value. They should not take any further action from there. GOODS ON HIRE PURCHASE/CONDITIONAL SALE Note that the bailiffs can only take things or goods that belong to you. These include those that you co-own with a partner. They cannot count the goods that are owned by other people. You must keep substantial documents that will prove different ownership of such goods so the bailiffs will not be able to take them away. Also, the bailiffs cannot take away goods that are on hire purchase or conditional sale. If you have these things, you better keep copies of your agreements and show them to the bailiffs. Sometimes, however, the bailiffs choose to take away goods with such nature, especially if they feel that they can sell it more than the amount you owed to the hire purchase/conditional sale company. But this rarely happens. HOW DO I APPLY TO SUSPEND THE 'WARRANT OF EXECUTION'? As mentioned earlier, suspending the warrant can be filed in court through the form N245. The County Court must accept your application regardless whether the bailiff already visited, managed to break into your home, or not. The bailiffs can continue bugging you around until your application is approved. FILLING IN THE N245 APPLICATION FORM It is important that you sort out your personal budget carefully upon filing for a suspended warrant. All your income as well as your expenses will be needed to fill the N245 form. Basically, you will want the court to agree in a specific amount that you claim you can only afford. You can only make this claim acceptable if you have the necessary documents that will prove to the court that you have enough expenses to mind at home to be able to offer a higher amount. Once you make the application, the bailiffs cannot take away any of your goods. It is permissible, however, that they call you or even pay you visits. They can even list down your valuables that are good for auction also called levying but they cannot take any of those things. Not yet. FEES Applying to suspend the warrant usually charges £30.00. You can waive this amount, however, especially if you are on low income or on certain benefits. WHAT HAPPENS NEXT? After completing the required information on the form N245, you must submit it to the County Court and pay the necessary fees. Your creditor will receive a copy of your application so he can decide whether to agree or not on your terms. If your creditor agrees, he will send a notice to the court which will then document the terms and send you the details. If your creditor does not agree, the court will decide on the terms of payments on merits of the information you have written on your application. If your creditor objects to your application altogether, the court will call a hearing so the District Judge will know what to do. In this hearing, you need to explain why you have applied to suspend the warrant and what are the grounds that you feel will make the court agree with you. On the other hand, if you do not agree with the court's terms in the order, you can ask for a hearing to explain your reasons. You will use an N244 form to ask the court reconsider its decision. This form should be filed within 14 days that you receive the notice of order. At this stage, you should no longer be paying anymore fees. At the hearing, you can bring a copy of your personal budget to strengthen your claim that you cannot afford the amount set by the court. COUNTY COURT FEES DO I HAVE TO PAY FOR AN APPLICATION IN THE COUNTY COURT? Usually, a fee of £30.00 is charged for those who applies for a suspended warrant. The court, however, awards exemptions to those who are worthy of them. To apply for it, you must file an EX160 or the "Application for a fee exemption or remission". This application should go with your main application. If the court agrees that you will be exempted based on certain cicumstances, you no longer have to pay a fee. If, however, you have already paid a fee but you have proven to be deserving of an exemption, you will have to apply for a refund within six months. EXEMPTIONS Exemptions to pay court fees are awarded to those who are on income support or on Job Seekers' Allowance (JSA). You can ask the court to give you exemptions by presenting the necessary documents that will prove you are getting any of those benefits. Those who are on tax credit may also apply for an exemption to pay the fee for as long as they are on child tax credit or they have received the disability or severe disability element in their working tax credit. Either way, they must have an annual gross income taken into account for working tax credit that is not more than £14,600. To qualify for the exemption, applicants must present their tax credit award notice. If you do not qualify based on both cases, you can ask for the fee you paid to be remitted or waived by rule of remission. REMISSIONS If paying the fee for your application will cause you "undue financial hardship", the court may waive the amount you have shed. To do this, you must file an EX160 form stating the circumstances or benefits you have that does not automatically exempt you from paying the fees. You must support your claim with documents that will prove your incapacity to pay. The court may remit all or part of your paid fees depending on what they feel you can afford.

Bailiffs and Council Tax - Know Your Legal Rights

Many of us do not know how bailiffs work to collect arrears. Basically, bailiffs are private personnel hired by the local council to handle Council Tax and Poll Tax. Anything that they get from you is auctioned as a way of paying your existing debt. This process of taking your goods, selling them, and paying your debt is called "distraining" or "levying".

Since October of 1998, the County Court ruled that bailiffs must carry a certificate with them as a proof that they have been hired by the local council. Any complain about a bailiff not following this order can be brought to the attention of the court immediately.

Since April of the same year, a process involving bailiffs and debts has also been at work. This process states that you, as a debtor, must get a letter from the Council which contains the details of your credits. The same notice would bear the warning that if ever you fail to pay your financial obligation within 14 days, bailiffs will be sent to your aid. You may contact a member of the local council within the period for your concerns. You can also make suggestions to the council about the most convenient payment scheme that you can afford. If the council approve of your suggestion, they will ask the bailiffs to stop calling you and save you extra fees in the long run.

DO I HAVE TO LET THE BAILIFFS IN?

One thing that you must know about bailiffs is that you do not have the responsibility to take them in whenever they come. In fact, you can choose not to let them inside your home. If the bailiffs have never been into your home, they have no right to come in at anytime of the day. It is also unlawful for them to break in.

As a form of precaution, avoid the following scenarios:

- Do not open your doors to the bailiffs. Once you entertain them, they will have the power to push past you. If they get inside, they will have the right to enter again and take more of your goods.
- Do not leave your doors and windows unlocked because bailiffs can easily take advantage of any kind of opening. As they cannot ask the police to help them break in, your carelessness is their only ticket.
- Do not fall to any kind of trap. Bailiffs can make several bluffs like asking to use the toilet or the telephone just so they can lure you towards letting them in.
- Do not leave your valuables lying around. Bailiffs can easily take away anything valuable that they lay their eyes and hands on. Make sure that your cars are always shielded from view.
- Do not make transactions inside your home. If you have a certain amount to pay the bailiffs out for your debt, do so but make sure that you transact outside. Do not forget to take a receipt as well.
- Do not sign anything that the bailiffs ask you to. The bailiffs do not have the right to make you sign any sort of document, whether it was left posted in your door or handed out to you personally.

THE BAILIFFS HAVE ALREADY BEEN INSIDE MY HOME

If you allowed the bailiffs go inside your home at once, you are in for a more serious situation. Once bailiffs are let inside, they will have the right to come back again. If you choose not to let them in the second time, they will have the right to break in. What you can do to repair this problem is to get in touch with your local council immediately or make the necessary arrangements with the bailiffs. You can ask your local councilor for help or you can devise a specific payment scheme that you can afford and present it to the bailiffs. If they agree on your terms, you can prevent them from coming back and take any more of your things. Also make sure that you take a receipt of your every payment to be on the safe side.

WHAT THINGS ARE THE BAILIFFS ALLOWED TO TAKE?

Most of your valuables can be legally taken by the bailiffs except for the following:
- Anything that was rented or hired.
- Items or equipments that are necessary for your personal and professional use.
- Your basic daily needs such as clothing, bedding, and furniture.

You will notice that exemptions are not really item specific. The bailiffs may have different interpretation of which items they can take legally or not. If you feel that what they have taken away should have been exempted, you can file an appropriate complaint in your local council.

CAN THE BAILIFFS TAKE THINGS WHICH ARE NOT MINE?

It has been clearly established by the law that the bailiffs can only take what are legally yours. This include items that you co-own with your partner. If the bailiffs attempt to take anything that you do not own, politely tell them about the item's ownership by showing receipts or proofs of purchase that will indeed tell them that it is not yours. Also, the owner of the goods can make a sworn statement or a statutory declaration about the real ownership of the items.

Other things that bailiffs cannot take are the ones that are rented or hired. Make sure that you keep a copy of your agreement with the real owner so the bailiffs will not take them away.

WHAT IF I HIDE THINGS OR GIVE THEM AWAY?

It is legal to hide your valuables if the bailiffs have never been inside your home. Once they step in, however, they will list all the items they intend to take. If you try to hide any of those things elsewhere other than your home, you will be committing an offence that is punishable by the law. If you are able to keep the items discreetly out of sight, the bailiffs can rightfully search for them on visits.

BAILIFFS PROCEDURES

The good news is that bailiffs cannot break inside your home just like that. They are also covered by certain laws and procedures that they must adhere to including the following:
- Bailiffs must bring with them a written authorization or a certificate from the local council.
- Bailiffs must hand you a copy of the "Enforcement Regulations" which contain information on what they are only allowed to do.
- Bailiffs must also bring with them a statement of charges that they can take with each visit. They should never make additions to blow up your debts.
- Bailiffs must also bring with them a "Walking Possession" agreement duly signed by you. This agreement contains the list of items that they have warned to take right from their first visit.

HOW DO I STOP THE BAILIFFS?

The most effective measure to stop the bailiffs from taking away your things is to make an arrangement on how you can pay your debt. Devising an effective installment plan will be beneficial for you especially if the bailiffs have never been into your home. Offer only what you can afford to pay to prevent any form of misunderstanding to take place.

The bailiffs cannot send you to prison. If they fail to break into your home, their most appropriate action is to pass your debt back to the council. If this happens, it would be much easier to settle the problem. You better take this as a priority debt because if you do not act on it immediately, the council will find another way to recover the money. They can file an Attachment of Earnings Order, which will take out money from your earnings or other form of order that will summon you to pay your financial obligations dutifully.

In some instances, the council may agree to exempt your case from bringing it to the bailiffs' attention. The council allow direct payment schemes for those who are on Income Support, Pension Credit, and Job Seekers' Allowance. Better yet, ask the council whether they can take back your case from the bailiffs so you can deal with them directly. Your local councilor can help you make the deal with the council. Explain your reasons and whatever difficulty it will bring you in case the bailiffs break into your home and take your things to stand a chance for a consideration.

HOW DO I COMPLAIN?

There are Enforcement Regulations that the bailiffs must adhere to. However, the National Standards for Enforcement Agents issued by the Lord Chancellors Department is quite tricky. Although it provides specific guidelines on bailiffs' behavior in carrying out their duties, mentioning these standards in your complaint may be or may not be beneficial to you. You can look out for the standards yourself through the Department for Constitutional Affairs website

(www.dca.gov.uk/enforcement/agents02.htm).

The law concerning the bailiffs is complex but you can start learning it through by reading the law yourself and trying to understand every bit of technicalities in it. Your personal effort, however, may not be sufficient. If you can, it would be best to get a legal advice on what you can do against what you feel is unlawful action of the bailiffs.

Since October 1998, the bailiffs need to act with a certificate at hand. This certificate to collect Council Tax must be granted by the court. Filing a complaint against the bailiffs can have their certificate withdrawn and their right to enter your house forfeited. To file a complaint, you can write a formal letter to the Court Manager so he can administer a hearing. Once the court find substance in your complaint, it can rule out to cancel the bailiffs' certificate, order compensation as well as return of the surrendered goods. Some cases acted favorably to the complainants where their debts have been written off due to the bailiffs' illegal acts. This is one of the reasons why you should not take your complaint sitting down. Once you discover an irregularity, you must rush to the Magistrates Court to file a complaint.

The bailiffs report directly to the council and it would be ideal to bring your case there. Once it receives your complaint, it must order the bailiffs to change their procedures. If this do not work, you can call the attention of your local councilor or your local government Ombudsman to look through your case.

BAILIFFS CHARGES

If the bailiffs are asking for excessive charges, you can use it as a case for complaint. You can make a written notice to the council telling them that what has been taken from you may be way too much. You can also seek advice from the County Court regarding the appropriate fines the bailiffs can charge you.

Your common sense and your knowledge on local processes can also be useful in determining what amount of fine is reasonable and what is not. If, for example, the bailiffs charged you £80 for attendance with a van and hiring a van costs only £40, you are obviously charged unfairly. When such circumstance takes place, you can instantly call the attention of the bailiffs. Warn them that you will take further action for your complaint to be recognized if they refuse to follow the regulated schedule.

Submit a written complaint to the council so they know how the bailiffs are illegally carrying out their duties. Other than that, you can also apply for a "Taxation" in the County Court. This kind of application will ask the court to look through your complaint within 12 months after which they should submit a decision whether the bailiffs charges have been excessive or not. If the court decides against you, you will be held liable for the bailiffs' firm's court costs. That's why you must be careful in taking such action. Please remember, however, that making complaints is worth your every effort especially when you are loaded with evidences that will prove that the bailiffs stepped out of the line.

USEFUL LINKS

The Secretary
Association of Civil Enforcement Agencies
Kensington House
33 Imperial Square
Cheltenam
Glos
Tel: 01242 241456
Website: www.acea.org.uk

The Secretary
Enforcement Services Association (ENSAS) (formally The Certificated Bailiffs Association)
Ridgefield House
14 John Dalton Street
Manchester
M2 6JR
Tel: 0161 839 7225
Website: www.bailiffs.org.uk

Local Government Ombudsman (England)
Millbank Tower
Millbank
London SW1P 4QP
Advice Line: 0845 602 1983
Monday to Friday, 9.00 am - 4.30 pm
Website: www.lgo.org.uk
Note: There are a total of three local government Ombudsman offices for England. You may check whom to send a complaint by calling the Advice Line.

Local Government Ombudsman (Wales)
Derwen House Court Road Bridgend
CF31 1BN
Tel: 01656 661 325
Website: www.ombudsman-wales.org