What is a charge for payment in Scotland?

May 22, 2018

If you have been struggling with debt and have found yourself unable to make the required payments to your creditors, you may eventually be in the position where you creditors look to take further action against you to recover the money you owe. If this is the case, they may ask a sheriff officer to issue you with a charge for payment.

What is a charge for payment?

A charge for payment is a formal demand for you to pay the money you owe. This amount will include the original debt along with any interest or charges which have accrued over time. Charge for payment is a step which must be taken before diligence, or enforcement, proceedings can begin.

You will typically be given 14 days to pay the money you owe or come to an alternative arrangement with your creditor or the sheriff officer.

What happens if I cannot pay within 14 days?

You can ask for time to pay when you respond to the charge for payment. If accepted, you will be allowed to pay back the money you owe through a series of monthly instalments rather than all at once. Not only does this make it easier for you to repay the money, doing this also protects you from any further action from that creditor. Should the amount you owe to this creditor be lower than £5,000, you have the right to request additional time to pay at any point. This is done through the ‘simple procedure’ process.

It is important to remember, however, that agreeing to a time to pay arrangement only protects you from further action from the creditor who served you with the charge for payment; any other creditors you may have will still be able to chase you for payment or initiate legal proceedings of their own against you.

What is the next step after charge for payment?

If you ignore or otherwise fail to respond to the charge for payment, it will expire after 14 days and the court will automatically make a judgment against you allowing for enforcement action to take place.

After the charge for payment has expired it is likely that diligence will be used to recoup the money you owe. This can take many forms depending on your individual situation and the amount of money you owe, and can include deducting money directly from your wages, freezing your bank account, or removing valuable items from your home.

Due to this it is absolutely vital that you seek professional advice as soon as you are served with such a notice. Ignoring the issue is not an option as this will only lead to further and more serious action being taken against you. Therefore you should make it a priority to seek the help and guidance of debt experts who will be able to suggest the best way forward for you.

How Scotland Debt Solutions can help

At Scotland Debt Solutions we have almost 30 years’ experience of helping Scots out of debt. We will take the time to understand your situation in order to provide you with individual advice tailored to you. If you have been served with a charge for payment, or fear this may be the next step your creditors are looking to take against you, call our experts today and take the first step towards resolving your debt worries.

My partner and I are considering a joint loan, is it wise?

21st May 2019

When taking out a joint loan, there are many things you need to consider. Signing up to a joint credit agreement is a huge commitment and it’s important to ensure you have all the facts before signing on the dotted line. While no one wants to think about a relationship breaking down, the truth is […]

Read more

Where should you start when looking to save money each month?

21st May 2019

If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]

Read more

Will I Lose My Home If I Enter Into a Trust Deed?

21st May 2019

A trust deed is a common debt repayment programme based around a voluntary arrangement made between you, your creditors and a qualified independent trustee who takes control of your debt repayments for a typical period of four years. If you’re having difficulty paying your debts and have assets or a regular income, you may qualify […]

Read more

How to write off gambling debt

20th May 2019

If you have built up debt from gambling, you may be able to write off part or all of the debt via a formal Scottish insolvency route. Not all insolvency solutions allow debts to be written off, but you may be eligible for a trust deed if you meet certain criteria, with sequestration also being a possibility […]

Read more

Dealing with HMRC tax debts

20th May 2019

Her Majesty’s Revenues and Customs (HMRC) is one of the biggest creditors in Scotland, and indeed across the rest of the UK. Millions of people make payments to the government through HMRC in the form of income taxes, National Insurance and VAT every year. For the majority of people in employment, this is done automatically […]

Read more

Coping with council tax debts

20th May 2019

Council tax is a charge levied on residential property and payable to the local council. While some properties are exempt from paying council tax, most households must factor this bill into their monthly budget. Households will be given a yearly charge which can then be broken down into a series of monthly instalments throughout the […]

Read more