How to deal with the long arm of the law
WITH the recession in full swing and with more and more people losing their jobs, debt has become a serious issue for many people.
Solicitor Gerry Burns, managing partner of Burns Nowlan Solicitors in Newbridge, Co. Kildare, believes that many people get themselves into even more difficulties by not giving their debt issues adequate attention and advises that there are some practical steps that people should take to address the problem of debt.
"If legal proceedings are issued do not under any circumstances simply put these to one side. Bring them immediately to a solicitor – most solicitors will do their utmost to assist a person in difficulty.
"If you do not contact a solicitor, ensure you attend court on the required date otherwise a judgement might be granted against you.
"This judgement can then be registered against you or your property.
Judges will usually go out of their way to help you through the court procedure. Bring with you copies of any letters sent by you together with evidence of payments made. Once a judge sees that you have approached the issue in a reasonable and prompt manner you will normally be allowed time to try and rectify the matter and the threat of a court order should then recede."
Gerry's practical advice was sought recently on the Midday Show on TV3 where he appeared on television in order to discuss the issue of dealing with mortgage arrears and debt. The show was inundated with callers and texters to the show who wanted advice on what they should do in order to deal with mortgage and loan arrears.
Gerry said that if a person feels that they may have difficulties with their mortgage repayments the worst thing they could do is bury their head in the sand and hope to situation will be averted.
Rather that person should take a number of steps in order to deal with the situation and these would include contacting the lender and explaining the financial circumstances.
Prior to meeting with the lender Gerry suggested that the borrower prepares a detailed household budget showing their income and expenditure and also how much they can afford to pay.
This budget will help them clearly see how much they can afford to pay back.
"If you feel that your financial difficulties will be short term request a moratorium on your repayments for a period of six to nine months. If this proposal is accepted no payments need to be made during that period", he suggested.
"Most importantly after your initial meeting write formally to the head office of the bank or Building Society requesting the moratorium or other financial agreement or arrangement. Ensure you keep a copy of the letter and record of the posting. Many people are now finding themselves in very difficult situations, but the important thing is to stay calm, don't panic and remember the courts will normally look favourably on a borrower who continues to make some form of payment – no matter how small".
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Weather for Naas, Ireland
Thursday 17 May 2012
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