If you have credit card and/or personal loan debt you are at a greater risk of having a creditor take legal action against you to recover their money. This is because these types of debt are usually unsecured, meaning that there is nothing attached to the debt which can be sold by the creditor if you do not pay. Without any security to fall back on, the only way that the creditor can recover any funds from you is to take the matter to court.
An unsecured creditor may be able to:

• Get a “Writ of Execution” from the Court, which is an order for the Sheriff to attend your home and seize goods which will then be sold at auction to pay your debt.
• Get a “garnishee order”, which is a court order that requires your employer to withhold a certain amount of your wages so that it can be paid towards your debt.
• Have you made bankrupt. This would mean that you would not be making payments towards your debts but, dependent on your income, you may have to make compulsory income contributions to your bankruptcy, and any sizable assets would be sold and the proceeds taken by your bankrupt estate.

It is possible to put a stay on such court-ordered action, but only with a formal arrangement such as a Debt Agreement, Personal Insolvency Agreement , and bankruptcy. These arrangements take some time to prepare so we never recommend waiting until you have been taken to court before beginning the process. If it all possible, you should nip the legal action in the bud as soon your creditors start sending threatening letters by calling a reputable service provider of formal debt solutions. If you have received a notification of impending legal action you should call our friendly and professional debt consultants immediately on 1800 462 767 for advice.