Debt doesn't just go away, so it is important to address it head on.
Our posts entitled "The Dangers of Denial to StressBusting™", "The Relationship between Legal Compliance & Stressbusting™" and "The Dangers of Litigation to Stressbusting™" all bear relevance to this and the related dangers of attempted avoidance.
If, for example, repayment is not made, then a court judgement may be entered against you which can ruin your credit score, restrict your loan capacity, result in substantial interest being added to the debt from date of judgement to date of repayment and bailiff action being take possession of your belongings on written notice.
Our post entitled "Directors' duties & the "Corporate Veil"" summarises possible dangers to organisational officers.
So, if debt repayment is being demanded, firstly satisfy yourself that the demand is not an attempted fraud, but is rather actually due and owing - see our post entitled "Combatting & coping with fraud" for further information.
Then, calculate the total of all lawful debts which are being claimed and focus on resolving these before incurring any further debts.
Is repayment due immediately and if so, is it achievable now? If not, can a payment plan be agreed over time?
In an organisational environment, can further shares be issued to help settle the debt or a would a debt restructure involving a new finance partner assist?
Or could a lower sum that can be afforded be accepted in full and final settlement of the whole debt?; if so, have this confirmed in writing BEFORE making payment. This is more likely to be acceptable if the debt has been assigned (ie transferred) to a third party, so check paperwork to see if you have been notified of any such transfer.
How long has the debt been outstanding? If it has been over 6 years since the debt accrued, was part paid or there has been engagement, it may no longer be recoverable - so check this.
Regardless of the debt status, persistent and illegitimate harassment is not permitted. If you feel you are suffering from undue or unreasonable harassment or for any reason do not understand correspondence you are receiving, then contact a specialist or the authorities and seek advice accordingly.
In the event that it is apparent debts cannot be paid as they fall due, please see our post entitled "StressBusting™ in a failing company scenario".
And finally, bear in mind that there are excellent charities which can be sourced online under a simple search of "debt collection help charities" which may be able to ease financial and emotional pressure, advise of options available and liaise with those claiming repayment on your behalf as necessary, so do not be afraid or too proud to contact or use them - see our post entitled "Embrace Technology to Stressbust™".
For tips on remaining calm and focused in these challenging circumstances, see our earlier posts entitled "Avoid Overwhelm and keep calm head" and "Identifying & Stressbusting™ Panic Attacks".
If you can relate to the contents of this post and would like the value of our extensive network expertise in this area, please reach out to us in confidence via our "Contact" page or at connect@stressbustingexpert.com
For further information in this regard, please consult our "Legal Notices" page.