Who are common debt collectors in the UK?

Common UK debt collectors include Lowell Financial, Moriarty Law, Advantis Credit, Rossendales, Capquest, and many others. They act on behalf of creditors to recover debts.

Frequently Asked Questions About Debt Help

Q: What is an Individual Voluntary Arrangement (IVA)?

An IVA is a legally binding agreement between you and your creditors to repay what you can afford over 5-6 years. At the end of the IVA, any remaining unsecured debts are written off.

Q: How does a Debt Management Plan (DMP) work?

A DMP is an informal agreement where you pay your creditors one affordable monthly payment. It helps you manage debts without formal court action, though it doesn't legally stop creditors from pursuing debts.

Q: Can debt collectors take me to court?

Yes. If debts remain unpaid, creditors or debt collectors can apply for a County Court Judgment (CCJ), which legally requires you to repay the debt and can impact your credit rating.

Q: What is a Debt Relief Order (DRO)?

A DRO is a debt write-off solution for people with low income and debts under £30,000. It freezes debts for 12 months, after which they may be written off if your financial situation hasn't improved.

Get answers to the most common questions about debt solutions, dealing with debt collectors, court actions, bankruptcy, and more.

What is an Individual Voluntary Arrangement (IVA)?

An IVA is a formal, legally binding agreement between you and your creditors to repay what you can afford over 5 to 6 years. It helps you manage unsecured debts like credit cards, personal loans, and store cards. After the term ends, any remaining debt included in the IVA is legally written off.

IVAs protect you from bailiffs and court action, freeze interest, and reduce monthly payments to affordable levels.

How does a Debt Management Plan (DMP) work?

A Debt Management Plan is an informal agreement where you make one monthly payment to a debt management company, who distributes it to your creditors. It can help reduce stress by freezing interest and charges, but it does not legally prevent court action.

DMPs are suitable for people with manageable debts who want to avoid formal insolvency but need help budgeting and communication with creditors.

What is a Debt Relief Order (DRO)?

A Debt Relief Order is a low-cost debt write-off solution for people with debts under £30,000, low income, and few assets. It provides a 12-month freeze on all debts, after which the debts may be written off if your financial situation has not improved.

DROs are a good alternative to bankruptcy for those who qualify.

Can debt collectors take me to court?

Yes. If you fail to repay your debts, creditors or debt collectors can apply for a County Court Judgment (CCJ) against you. A CCJ is a legal order requiring repayment and can stay on your credit file for six years, affecting your ability to get credit.

Ignoring court action can lead to enforcement measures such as bailiffs or wage garnishment.

What is the Breathing Space scheme?

The Breathing Space scheme gives you legal protection from most creditor action for up to 60 days, including freezing interest and stopping contact from debt collectors. It provides time to get professional advice and plan your next steps.

You can apply for Breathing Space through authorised debt advisers.

Can I write off my debt?

Yes. Certain formal debt solutions like IVAs, DROs, and bankruptcy can write off some or all of your unsecured debts, legally freeing you from repayment after a set period.

Write-offs depend on your financial situation, the type of debt, and the solution you choose.

What are my rights against debt collectors?

You have the right to fair and respectful treatment. Debt collectors cannot harass you, make threats, or mislead you. You can request proof of the debt and must be treated according to the Financial Conduct Authority (FCA) guidelines.

If you feel a debt collector is acting unfairly, you can file a complaint with the creditor or the Financial Ombudsman Service.

How does bankruptcy work?

Bankruptcy is a legal process that can clear most or all unsecured debts, usually within 12 months. It involves handing over your assets to a trustee to pay creditors and imposes restrictions on your finances and credit rating.

Bankruptcy should be considered as a last resort after exploring other debt solutions.

Can I include credit card and loan debts in an IVA?

Yes, IVAs can cover most unsecured debts including credit cards, personal loans, store cards, and payday loans. This allows you to consolidate payments and write off remaining debts after the IVA period.

How do I choose the right debt solution?

The best debt solution depends on your total debt amount, income, assets, and personal circumstances. A qualified debt adviser can assess your situation and recommend whether an IVA, DMP, DRO, bankruptcy, or another option is best for you.

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What happens if I default on my debts?

Defaulting on debts means you’ve missed payments for several months, causing your account to be marked as defaulted. This severely impacts your credit score, making future borrowing difficult or expensive.

After default, creditors often escalate collection efforts, which may include handing your debt to debt collectors or starting court proceedings.

Can I freeze interest on my debts?

Many debt solutions like IVAs and some DMPs can freeze interest and additional charges, helping you reduce the overall amount owed and make repayments more manageable.

During schemes like Breathing Space, interest is also paused temporarily to give you relief while seeking advice.

How long does a CCJ stay on my credit file?

A County Court Judgment (CCJ) usually stays on your credit report for six years from the date it is issued. It can significantly reduce your credit rating and affect your ability to get loans, mortgages, or credit cards.

Paying the CCJ in full within a month can have a slightly less negative impact.

What is the difference between secured and unsecured debt?

Secured debts are backed by an asset, such as a mortgage secured against your home. If you fail to repay, the lender can repossess the asset.

Unsecured debts, like credit cards, personal loans, and store cards, are not backed by assets. Creditors can’t repossess property but can take legal action to recover the money owed.

Can I include council tax arrears in an IVA or DMP?

Yes, council tax arrears can often be included in formal debt solutions like IVAs and informal plans like DMPs. This helps you manage and repay all your debts in a coordinated way.

Including council tax in your plan may prevent bailiff action and help you avoid legal enforcement.

What if I’m self-employed and struggling with debt?

Being self-employed can complicate debt management due to variable income, but many debt solutions are tailored to suit self-employed individuals.

Specialist advisers can help you find flexible repayment plans or formal solutions that work with your income patterns.

How do IVA companies differ?

Not all IVA providers offer the same level of service or fees. It’s important to choose a reputable, FCA-authorised IVA company with transparent costs and good client reviews.

We work with trusted IVA companies to ensure you get fair, expert advice and the best possible outcomes.

Can I stop bailiffs from taking my property?

If bailiffs are enforcing a debt, you may be able to stop or delay action by seeking professional debt advice, applying for Breathing Space, or entering into a formal debt solution like an IVA.

It’s important to act quickly and not ignore bailiff notices.

What are affordable repayment plans?

Affordable repayment plans are tailored payment arrangements that fit your financial situation, allowing you to repay debts at a manageable rate without undue hardship.

Solutions like DMPs and IVAs are designed to offer affordable plans by freezing interest, reducing payments, and consolidating debts.

How can I avoid getting into debt again?

To avoid future debt problems, it’s important to budget carefully, build an emergency fund, and seek professional financial advice when needed.

We provide ongoing support and budgeting tools to help you maintain financial stability after clearing your debts.

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If you’re overwhelmed by debt or have questions about your options, don’t wait. Fresh Start Debt Support offers free, confidential advice tailored to your circumstances. Take the first step toward financial freedom today.