What is water & rates arrears?
You may owe money to your water supplier if you have not paid a previous bill or if you have fallen behind with payments you are supposed to make towards your current bill. Your water supply cannot be cut off for owing money to your supplier. However, it is still important to make an arrangement to pay what you owe so the debt doesn’t get any bigger.
Once you are in arrears with your payments you will be sent either a “reminder” or a “final notice”, which gives you seven days to pay. If you still do not pay you may receive another letter warning you of pending court action and you will incur further costs.
If you still do not make arrangements for payment, the water company can start court action against you after the seven-day letter has expired. The water company will claim for any unpaid charges and costs incurred in recovering the debt. If you are paying off arrears on your water bill and you receive another bill, the water provider must follow the same procedure to recover any arrears on the second bill. Check that the bill is correct and that you are responsible for the arrears.
For tips on how to save water check out our post – Tips on how to reduce your water bill
Lawsuits are filed to collect these debts:
In the case of outstanding payments the creditor/bank may have the right to file a lawsuit against the consumer to force payment of the debt through a judgment.
The lawsuit must be served upon the debtor according to the service of process rules of the state in which the consumer resides. Then, the consumer can defend the lawsuit by asserting various defences such as fraud in the creation of the account, or that the amount sought after is incorrect or has been paid, to name just a few.
If the case is not properly defended, then the creditor will obtain a judgment in its favour. When the creditor has a judgment, it may seek involuntary means to force payment such as wage garnishment, asset attachment or lien on the property.
How debt review can help those with water & rates arrears
Using a Debt counsellors like ezDebt we will formally review your finances and develop a suitable monthly budget by negotiating with your creditors on your behalf
- Enables clients to make one monthly debt repayment
- Stops creditors from hassling you
- Decreases judgements against you
- Prevents you from declaring bankruptcy
- Maps out the path towards becoming debt free
If you’ve fallen behind with your rent payments, you should take action quickly to deal with the situation.