Once a creditor has decided to take court action against you – which is a real signal of intent – you’ll receive a summons or initial writ from the court, depending on your debt level. The Sheriff’s Court deals with most cases whilst the Court of Session only deals with larger debts.
Ultimately, it will be up to you to pay your creditor what is owed as they have proved to the court that you have failed to meet your liabilities. Some creditors may have the correct power from a fast track procedure because of the type of debt you have or due to the way you arranged to borrow the money under a special legal agreement.
If the debt you owe cannot be enforced under a fast track procedure, the next step the creditor has to take is to send you a legal document in writing called a charge for payment. The charge for payment is likely to be hand delivered by a sheriff officer, but you could also receive it through the post.
This is a formal demand to repay within 14 days, the full amount plus interest and other charges such as sheriff officer fees. The charge for payment must be accompanied by a Debt Advice and Information Package (DAIP).
If you fail to pay, it makes the debt official and the situation can be used by your creditor as the basis for legal action. A charge for payment proves your apparent insolvency, and also enables you to petition for your own sequestration if you wish.
You have 14 days in which to respond so time is at a premium, and seeking professional money advice should be your first step. A variety of options may still be open to you, including negotiating a time to pay order or entering a Debt Arrangement Scheme.
If you’re facing court action from a disgruntled creditor, contact a Scotland Debt Adviser and request a free initial consultation to discuss these issues confidentially at your convenience.
Our Scottish based team can help advise you on your debt problems.