We know that right now, there is a great deal of uncertainty and upheaval especially with financial products. Here are some of the questions we’ve recently been asked; we hope that they will give you a better understanding of your rights and what is expected of you.

What happens with my Debenhams card if they go into administration?

If you owe money on a store card, you still have to pay it even if the store goes into Administration.  Bear in mind that most store cards are actually issued under agreements with a finance company. For example, the Debenhams card is currently issued by NewDay Ltd. therefore, the debt is due to NewDay Ltd, not Debenhams, as the store acts as agent for NewDay Ltd.

If you have a gift card for a company and that company becomes insolvent then they do not have to accept the gift card as payment. However, in the past, the Administrators of some large retailers have allowed gift cards to be used.  There is no guarantee that the same would happen in any future insolvency.  The best thing to do with any gift cards, whichever company they are for, is to use them quickly before you lose them or forget about them. Then you don’t need to worry about the business becoming insolvent later.

What happens if a payday lender goes into administration?

Any loans taken out with a payday lender have to be paid on normal terms, even if the company goes into Administration.  If you pay by direct debit or standing order, you won’t need to do anything as the payments should continue as normal unless you receive instructions to change them. If you are unsure about how to pay or who to pay, the usual contact details would usually continue operating.

Are all my debts wiped out if I become bankrupt?

Most of your debts are included in the bankruptcy, such as credit cards, payday loans, tax debts and store cards. However, there are a few that you would still have to pay after your bankruptcy ends.  Any secured debts such as mortgages and HP agreements need to be paid if you want to keep the property or other assets they are secured on. If you decided to give up the asset, such as a car, then any debt due to the HP company would be included in the bankruptcy and your liability would end.

Other debts that you will still have to pay after bankruptcy include Maintenance and child support payments, student loans, social fund loans, magistrate court fines, personal injury claims against you, and anything due under a confiscation order.  It is important to remember that if any of your debts are in joint names or guaranteed by someone else, they will have to pay if you are bankrupt.

It is always best to get advice on your individual circumstances, as each person needs different advice to ensure they understand if bankruptcy is the right option for them.

If you need further advice, please don’t hesitate to contact us

Blackpool: 01253 299 399 | Carlisle: 01228 558 899