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Debt Counselling and Debt Collectors Limited Powers

Debt Collectors have Limited Powers

If you have decided to take your chances and not apply for debt counselling or don’t qualify for debt counselling you should be aware of debt collectors and their powers.

Debt collectors do not have unlimited powers to recoup the debt owed to them.

Here is a list of what they are legally able to do:

Irrespective of the threats that they may make, debt collectors tasked with collecting unsecured debt have limited legal abilities to recover money.

Secured debt affords the debt collector more leeway in terms of the extent they may go to recover their debt. They can reposes or seize your assets being your house, your car, equipment etc in order to offset the value generated through your assets disposal against the debt that you owe.

Debt collectors earn a commission on each debt they recover so they will tend to ignore the small amounts owed and go after the big fish. It is important to note however that ignoring paying smaller debts will inevitably blemish your credit record and your reputation.

Large debts will be chased with gusto and you may even be sued as a recovery measure to ensure they get their commission. In this case you will be served with a summons to appear in court. Should the collector win the case against you, they may impose a garnishee or emolument order and they may also be issued with permission to seize your assets which they will dispose of at auction to offset against the value of your debt plus costs. Debt collectors may also place a judgement lien against a specific assets forbidding you to dispose of the asset or even borrowing against it.

If you are stressed by the amount of debt that you have amassed and are wondering how you are going to pay your monthly financial commitments, simply call us, SMS Help to 40935 or fill out the form alongside and a highly trained, debt counsellor will make contact with you to assess your personal financial situation and give you free advice.