Is any person or company that I owe money allowed to take my assets (e.g. my house) to make up for the debt? Or is only the bank that owns the house allowed?
Hi there and thanks for the question.
Firstly, no one is allowed to take anything from you unless it is ordered by the court.
By the time your assets are repossessed there is quite a few things that should have preceded the repossession. When you default on your accounts for the first time, a section 129 notice must be sent to you. By the time of the 129 notice, you must have been in default for 20 business days already. The notice gives you 10 days to rectify the arrears and informs you of your right to apply for debt review. If you still don’t pay your account after the 129 notice, the credit provider may start collections procedures where they hand you over to debt collectors or attorneys. The debt collectors or attorneys should also give you a letter of demand, and offer you the opportunity to make a payment arrangement. If you do not keep to the payment arrangement, they can approach a court to force you to pay. If you still fail to make regular payments, they can approach a court to ask if they can repossess your assets and sell it at an auction in an attempt to collect the outstanding debt.
As you can see, it is not just as simple as taking your assets. There are quite cumbersome and lengthy processes that have to be followed first.
Hope the info was useful.