If you are behind with payments to someone you owe money to (legally called a 'creditor'), they have legal powers to get their money.  What they can do depends on the type of debt, for example you could lose your home or even go to prison.  So if you have several debts, you need to work out which ones you must deal with first and try to make arrangements to repay them.  

Outlined below are common types of debt and what the law says that you, and the creditor, must each do when the creditor wants to get the money you owe.

• Rent or mortgage payment problems
• Council Tax bill problems
• Hire Purchase (HP) problems
• Gas, electricity and phone bills
• Water bills
• Loans and credit problems

If you have many different debts, there are several ways, using the courts, that you can sort things out yourself:

• Administration orders
• Individual voluntary arrangement (IVA)
• Bankruptcy
• Dealing with bailiffs
• County Court bailiffs
• Bailiffs and the Human Rights Act

There are several laws and regulations designed to make sure that any credit deals you sign up to are fair, and any organisations you owe money to behave reasonably:

• Unfair credit agreements
• Unfair contract terms
• Credit licence
• Undue influence
• Limitation Period
• Harassment to repay

Being sent to prison is a great fear for many people with serious debts.  In most cases, it's not very likely, since a prison sentence is a last resort. 

• Terms used when dealing with debt
• Where to go for further advice

There are two Magistrates Courts in Sunderland, one in Sunderland City Centre ( 84kb) and the other in Houghton-le-Spring ( 53kb) who may deal with your case.

You may find these links to external sites useful.

If there are any other aspects of dealing with debt that you would like to see here,  please contact the webmaster