How can solicitors help with debt?
Our debt solicitors can discuss the best way to manage your debt to avoid legal action, or we can defend you if legal action is taken.
We can provide practical help whatever your situation. Whether you are concerned about paying your debts, you have received a statutory demand from a creditor, you need help dealing with bailiffs, or your assets are at risk due to somebody else’s debt, please talk to us.
When you are struggling with debt problems, we can create a debt management plan with you so you can face the future with confidence.
We can negotiate repayments with your creditors through an informal agreement or an Individual Voluntary Arrangement (IVA). An IVA is a legal agreement between someone who cannot pay their debts and their creditors. With an IVA in place, you will be able to pay an agreed amount over five years, following which any remaining debt is written off.
We are unable to provide financial advice, and where financial arrangements such as an IVA or bankruptcy are being considered, we would recommend you obtain advice from a Debt agency or Insolvency Practitioner. In such situations, we may be able to assist in preventing any legal action from being taken against you while steps are taken to try and agree on a financial arrangement such as an IVA.
If Court proceedings are issued, we can represent you to try and avoid a County Court Judgment (CCJ) or a Bankruptcy Order. Our experienced personal debt solicitors can defend you and guide you through the process.
In relation to any debt claim brought by a business against an individual, there is the requirement to comply with the Pre-action Protocol for Debt Claims. We can ensure there is compliance with the Protocol, which provides an opportunity to try and agree on a resolution or set out the basis upon which the Debt is disputed.
Can you challenge an unfair CCJ?
A County Court Judgment (CCJ) is a court order to pay money. You can apply to have a CCJ set aside (cancelled) if you have a reasonable defence to the Claim and act promptly. If a judgment is set aside, the Debt is not cancelled. It simply means that you and the creditor are in the same position you were in before the CCJ was issued, which may provide you with an opportunity to defend the Claim or try to agree on a settlement.
If you did not receive the Claim form from the Court because it was sent to the wrong address, or you did respond to the Claim form, but the Creditor ignored your response, then a CCJ may be set aside. However, you will usually need to show you have a reasonable defence and acted promptly once you discovered the CCJ.
Challenging a CCJ incurs a Court fee, so it is vital to make sure you have reasonable grounds to do so. A legal expert at Davisons Law will be able to advise you whether a CCJ can reasonably be set aside.
Is a CCJ a criminal conviction?
A CCJ is not a criminal conviction, even though the Court issues it. However, it can lead to further legal proceedings from creditors, such as an application for bankruptcy, so it is important to take immediate action if you receive a Claim form.