Debt

 

 

Since October 2005 we have offered assistance to people experiencing problems with consumer credit debt, Council Tax, utilities, bailiffs, bankruptcy, administration orders and dealing with County Court action.

During the last year the debt team has helped clients through the maze of debt, dealing with a wide variety of debt problems.

 

Council Tax arrears are a common priority debt. It is important to establish whether a Liability Order already exists and if possible avoid this by making a new arrangement. Many of our clients already have a Liability order which can lead to Council Tax Bailiff action.  We provide advice in negotiating an affordable repayment plan with the Bailiff. Over the last year we have succeeded in helping many vulnerable clients to ask the appropriate Local Authority to withdraw Bailiff action where it is inappropriate and not in accordance with the Bailiff Code of Practice for certain vulnerable groups of people.  

 

We have seen an increase in the number of people seeking advice regarding petitioning their bankruptcy. In some cases, this can be a real solution to overwhelming debts and provide a “fresh start”.  We provide advice to our clients in looking at alternatives to bankruptcy including referring people to Insolvency practitioners where an IVA (Individual Voluntary Arrangement) may be a real alternative, particularly where clients are homeowners and do not want to lose their home in bankruptcy.

We have seen a number of clients with Charging Orders against their home where previously unsecured credit debts are now secured following a County Court Judgement. This is a difficult area of debt advice, as often there is little the client can do to object to the Charging Order and the Court can view this as a real solution for the creditor. We advise our clients to seek legal advice from a solicitor to check the Charging Order will freeze the future interest on the debt so the remaining equity in the home is safe.

 

Over the last year we had some successes in getting unsecured debts written off where for example, an elderly, disabled client is unlikely to ever be in a position to repay their debts in their lifetime.

 

Finally we had some success over the last year in challenging insurance company decisions which have led to increasing debts. This is a different area of work but also rewarding as often asking an insurer to look at their decision again can result in a favourable outcome for our clients, especially with new evidence.