Debt and financial issues

Debt and financial issues

Debt is money that is owed to another person or organisation through an agreed contract, whether written or spoken.

A person or organisation in debt is known as a ‘debtor’. A person or organisation that is owed money is known as a ‘creditor’.

Both debtors and creditors have legal rights. There may be reasons why a debtor does not have to pay a creditor in full.

If a debtor cannot repay a debt by an agreed date it is important to seek advice and take action as soon as possible. There are free financial counselling services that can help in dealing with debt. Unpaid debt may result in a creditor seizing assets or taking a debtor to court in order to recover costs.

More information

Debtors' rights

Reasons you might not have to pay

Creditor notices and letters of demand

Debt collection

Options before legal action

Notice of legal action – being sued

Get help

Find out how you can get help with debt and financial issues.