Also, (I know this is in the wrong section but...) what happens when you default on previous bills? Like we have a gas bill that we're paying off from a previous flat and we just can't pay it anymore. It's in my British husbands name.
The general collection process (i.e., 'what happens') for an unpaid debt like that can be outlined as follows:
1) Receiving collection phone calls and letters (threatening, demanding payment, etc) from the original creditor.
2) Debt may be referred to original creditor's internal collections department & more of the above.
3) Debt defaults and you will then receive a written default notice advising that it has defaulted.
4) The original creditor then can refer (or in some instances, actually sells) the debt on to an outside collection agency, and/or pursues a county court judgement through the county court system.
5) If it goes to an external collection agency, more letters demanding payment (and phone calls) will continue, threatening legal action, etc.
6) If the debt is sent for a county court judgement, the debtor will receive blue and white paperwork with a court seal on it advising that the creditor has applied for judgement. There are forms attached for the debtor to respond and make an offer of payment. You have approximately 16 calendar days to respond with these. Primarily & in most cases, this is all done through the post.
7) Judgement is entered and an instalment payment set, or possibly judgement forthwith (full payment due), ordered by the court. If the debtor has not responded with an offer of payment, judgement will still be rendered by the court (with or without the debtor's response)...so it is to the debtor's benefit to respond. The court is not there to only be in favour of the creditor, but will take into consideration debtor's circumstances when setting an instalment amount (sometimes, instalments could be as little as £1 monthly, even 50p). If the debtor does not respond, then the court has no way of knowing the debtor's circumstances. If it's a legitimate debt, the court probably won't overturn that it's owed, but rather would be considerate of circumstances in setting an affordable payment. A county court judgement stays on the register and on the credit report for six years.
8 ) If payment of a county court judgement is then defaulted by the debtor, the creditor then can apply to the court for further action to be taken to collect the debt (known as enforcement) - could be having bailiffs sent, going for an attachment of earnings, or having a charging order put on a (real estate) property owned. (note the court system, terms, etc are different for Scotland! this is for England & Wales)
(Note these steps aren't hard & fast rules for the creditor & they may skip some steps. They may not have an internal collections dept, or they may want to go straight to a county court judgement - although it's more common for debt collectors to be used first. The only real rule there is that a default notice
must be sent, before the creditor passes the debt on to external collections & before they apply for a county court judgement. Oh yeah, once it gets to county court stage, then more specific rules apply to that whole process, of course.)
However, if you are going to be homeless, really the unpaid gas bill is the least of your worries at this point. You need to start structuring a hierarchy of your survival needs at this point, and unpaid debts aren't one of them presently, whilst shelter and food are. A county court judgement is not the calamitous end of the world that a lot of people make them out to be - yes, it will affect a credit record, ability to get future credit, and in some instances, could be bad news for certain future job prospects (law, finance, accounting & a few others). On the other hand, having shelter and food to eat are higher up the importance to life scale than those things are.
First, I would
highly recommend your following up on the links for housing that have been provided to you.
Then when your living situation is stabilised, and you are ready/able to tackle any residual problems with unpaid debt, then would suggest contacting one of the following:
Citizens AdviceCCCSPayplanMake sure to stick with one of the above, or another place that
charges no fees for the advice. Beware, there are fee chargers out there, and you don't want those. Even if you feel absolutely confident & self-assured that you know how to deal with the debts yourself, please take some advice. (CCCS and Paypal appointments are done, primarily, over the telephone.) You may not be aware how the system works here, or about the possible solutions available to you, according to your circumstances. Also, this advice can be very important in helping you with how to respond to court action, as well as letting the court know you've taken professional advice.
And again, get the housing situation (roof over your head) sorted first, then worry about the unpaid gas bill.
I'm sorry this is happening to you. Wishing you the best.
