Many people who need to repay a debt wonder if they are going to be visited by a bailiff or a debt collector. These people also believe that they are the same. A debt collector and a bailiff can both visit you at home, however, the two are very different. If you currently owe a debt, you should know the difference between the two.
The first thing that you should know is that a debt collector doesn’t have any legal power to make you pay your debt and a bailiff does. Below, you will learn what each can do to collect a debt in different situations.
What Is A Bailiff?
Today, bailiffs such as Scott and Co are often referred to as enforcement agents, however, many people still call them bailiffs. They have the legal power to collect a debt. Some are self-employed, some work for private companies, and there are some bailiffs who work for the council.
The most common debts that bailiffs collect include back payments on child maintenance, County Court judgments (CCJ’s), parking fines, and unpaid council taxes. A bailiff has the right to legally visit your property. By law, they are allowed to take your possessions and sell them to repay your debt.
Bailiffs are given this power because the type of debts that they collect is a top priority.
What Is A Debt Collector?
Debt collectors are also known as doorstop collectors and field agents. They are usually employed by a creditor or a debt collection agency. In some cases, you will receive a letter from the creditor to let you know that a debt collector will be visiting your home, however, most like to catch you by surprise.
The reason that debt collectors don’t want to give you any warning is that they are not legally allowed to enter your home and take your belongings the way that a bailiff can. The most that a debt collector is legally allowed to do is knock on your door and ask you to pay.
They cannot demand payment and they cannot force you to make it.
Can A Scottish Trust Deed Help?
Yes. A Scottish Trust Deed will prevent a bailiff or debt collector from taking any action against you. You can apply online here.
When Is A Bailiff Allowed To Collect A Debt?
In most cases, court action is necessary for a bailiff to come to your home. This means that the magistrates’ court, the County Court, or the High Court has signed an order. Whether the court signs the order or not would depend on the type of debt that you owe. The exception to this rule is HM Revenue & Customs. They can legally send a bailiff to your home without taking you to court first.
All debts, even those to HM Revenue & Customs must be made aware to you before a bailiff can get involved. If you ignore correspondence sent to you by the court and you have failed to set up a mutually agreed upon payment plan, a bailiff can legally come to your home.
When Is A Debt Collector Allowed To Collect A Debt?
Debt collectors often work for debt collection agencies or for internal collections team hired by the creditor. If you have defaulted on your payment, your debt would be sold to a debt collection agency. If you aren’t sure who owns your debt, you should contact the original creditor to find out who you should be making the payments to.
The Debt That Bailiffs Can Collect Vary
County Court bailiffs are allowed to collect most types of debt that you can lend to a business or an individual. In order to the bailiff to collect the debt, the creditor must have already filed for a CCJ (County Court Judgement) and you have failed to make the payments that the court ordered you to make.
Other types of bailiffs are allowed to collect debts that you owe to your local authority or the Government. Some common debts that can be collected include:
- Unpaid child maintenance
- Unpaid Council tax
- Criminal fines
- Parking penalties that were issued by the local authority
- Debts to HM Revenue & Customs such as tax credit over-payments, income tax, National Insurance, or VAT.
What Type Of Debt Do Debt Collectors Collect?
Most debt collectors collect a commercial debt. A few of the most common debts collected include:
- Credit card debt
- Unpaid utility bills
- Overdrafts
- Unpaid loans
- Other debts (debt from the local council and unpaid loans given by an individual)
What Are Bailiffs Legally Allowed To Do?
Bailiffs are only legally allowed to come to your home after they have sent you a letter to let you know that they are going to be coming. The letter is called a Notice of Enforcement. They cannot come to your home until 7 days after you received the notice.
Weekends don’t count, therefore, you will have 9 to 10 days to pay your debt in full or set up a payment arrangement. If you don’t, a bailiff will come to your home.
The only way that a bailiff is legally allowed to enter your home is in a peaceful way, through a door, with your permission. They are legally obligated to let you know who they are and why they are there. Bailiffs are not allowed to force their way into your home or break down your door.
I’ve Opened The Door, Can I Stand In The Way?
If you are standing in the way, the bailiff cannot push you out the way to gain access to the home. If a bailiff knocks on your door, it is best that you don’t let them in. Finally, if there only people home are children under the age of 16, they cannot enter your home.
The only way that a bailiff can forcibly enter your home is if they are collecting a criminal fine. This type of force can only be used as a last resort and most bailiffs rarely use force. Between April 2014 and December 2015, bailiffs in the entire country have only forcibly entered a home four times.
Bailiffs who are working for HM Revenue & Customs are allowed to use force if they are collecting certain debts, however, they would need the court’s permission. This type of force is rarely used.
If you let the bailiff into your home, they can start going through your things so that they can make a list of anything that you own of value. These things would later be sold at auction to repay your debt. If you don’t want to open the door to your home for a bailiff, you can speak to them through a door or an open window.
What Happens If I Let Them In?
If you let the bailiff in, there are certain things that they can take and there are certain things that the cannot. Most won’t take your belongings during the first visit. They will give you a chance to make arrangements to pay your debt. This is called a Controlled Goods Agreement.
If you neglect to make the agreed-upon payments, they will come back to your home and take all of the items on their list. These things will be sold at auction and the money will be put toward your debt. When the bailiff comes back to your home with their list, they are allowed to use force to enter your home.
Collecting Debts From Businesses
If a bailiff is collecting a debt from a business, their forced entry restrictions are different. If you own a shop or you are self-employed, a bailiff is allowed to break in.
What Can Debt Collectors Do?
Debt collectors have no special legal power to get you to pay your debt. They are allowed to contact you in a letter, over the phone, and they can visit you at home. If a debt collector does come to your home, you are not required to open the door or let them inside.
If you ask them to leave your property, they are legally required to do so and they are never allowed to take anything from your home.
If you are willing to talk to the debt collector, they must show you their identification if you ask. The debt collector can ask you to make a payment to them right there and then, however, you are not legally required to do so.
It is best to make arrangements with your creditor over the phone so that you can set up a reasonable payment plan. If you do choose to pay right then and there, make sure that you get a receipt and you hold onto it.
Free Debt Advice
If you are worried about debt collectors contacting your or bailiffs visiting your home, contact us for free debt advice.
If you don’t know whether your creditor is going to use a bailiff or a debt collector, you should give them a call so they can let you know.
If you are getting calls from a debt collector who is threatening to send bailiffs to your home without taking court action first, you have the legal right to make a formal complaint and you should.
FAQs
Can bailiffs enter my home for someone else’s debt?
Bailiffs are granted their powers by the court. If the court order has your address on it they are entitled to attempt to gain access to the property. Even if they gain entry, however, they should only take personal ‘luxury items’ belonging to the person named on the court order.
There are some clear rules about what bailiffs cannot take (no matter who they belong to): they cannot take items needed for work (e.g. laptops) or essential home items such as most cookers, beds and sofas.
But there are grey areas: if the bailiffs want to seize the possessions of your housemate and your guitar happens to be in their room, you’ll need to prove it’s yours to stop it being taken. If your games console is in your bedroom, it wouldn’t be taken. If in a communal area, it might be unless you can prove ownership.
Can bailiffs enter my home if I’m not there?
Generally, bailiffs in England and Wales cannot enter your home unless you or another adult lets them in. If you are out, they won’t usually be able to enter your home but there are some exceptions. Bailiffs may be able to force entry if they have been into your property before. And if they find a way of gaining access without using force (i.e. via an unlocked door), they will be able to make ‘peaceful entry’ even if no one is home.
In Scotland, sheriff officers cannot enter a property to seize possessions if no one in the house is 16 or over, understands English or understands the situation (e.g. because of mental disability).
What happens if I don’t let bailiffs in?
Depending on where you live in the UK, bailiffs (or sheriff officers in Scotland) have slightly different powers if you refuse entry. In England and Wales even if you refuse entry, they can enter through any unlocked door between 6am and 9pm as long as they use ‘peaceful means’. If you’ve locked all your doors, they may be able to force entry providing they have the appropriate court warrant and the debts relate to unpaid court fines or taxes. If the debt relates to anything else (e.g. credit card arrears, Council Tax debts etc) the bailiff will not be able to force entry.
In Scotland, sheriff officers have greater powers of entry, so they can enter your home using reasonable force to collect a wider range of debts. Again, they must have the appropriate court order to do this.
Even if you succeed in stopping bailiffs entering your home, they will be back. Whilst you can complain if you feel you are being harassed, bailiffs are entitled to make repeat visits. The simplest, quickest way of stopping them is to speak to a debt advisor.
Can a bailiff refuse a payment plan?
Yes, but that doesn’t mean it’s not worth making them an offer. You can negotiate with bailiffs and sheriff officers before or when they visit your home (negotiating from an upstairs window or via the letterbox is acceptable if you don’t want to let them in).
If you can’t afford to pay back all the money you owe but you can afford to pay something each week/month, offer that. Ideally, the earlier you contact them the better. That way you can send them your budget and payment plan in advance of a visit rather than trying to do it on the hoof.
If they refuse the plan talk to a debt management professional immediately.
See Also...
Trust Deed Example
Example Unsecured Debts
| 1 | Personal loan | £8,000 |
| 2 | Credit card 1 | £6,812 |
| 3 | Council Tax | £4,092 |
| 4 | HMRC Debts | £5,399 |
| 4 | Overpayments | £5,200 |
| 4 | Overdraft | £700 |
| Total Owed | £30,204 | |
Your Monthly Repayments Would Be
a Scottish Trust Deed £748
(total contractual repayments)
a Scottish Trust Deed £295
(total contractual repayments)
60%
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