Insolvency expert Paul Moorhead is warning people facing a financial crisis not to feel pressured by threats of legal action.
Mr Moorhead, from Rotherham-based insolvency practice Moorhead Savage, says debt collection agencies often use empty legal threats and documents that appear to be legal notices but aren’t to add extra pressure to an already tense situation.
“Dressed up to look like an official notice, it can easily seem that a creditor has already obtained a court order, which they may not have done,” says Mr Moorhead, who was 2013 Corporate Insolvency Practitioner of the Year.
“Using the word ‘Notice’ is particularly common as it gives the impression of being a court document, although a ‘notice’ is merely a notification that could be issued by anyone. That’s why it is important to know your full rights and to have somebody who completely understands what a debt agency’s correspondence is actually saying, rather than what it appears to say.”
Mr Moorhead says that even if somebody really does have a legal judgment against you, there are still things you can have done to establish a sensible and affordable repayment plan.