Debt and Money
Fed up with endless debt? You are not alone. We have helped many clients escape from debt by advising them on the best solution for them. If you feel that we can help you then contact us.
Why use Beesley and Company Solicitors?
We are an approved specialist provider of advice in debt matters by the Legal Services Commission. Subject to financial qualification, we are able to provide free independent advice to members of the public under the Legal Services Commission Legal Help Scheme. Please contact us to confirm whether you qualify for such advice.
You may have already received offers of help from Debt Management companies and offers of additional lending from Loan companies. You may have refused further finance via consolidation loans. You may have already spoken to so-called debt advisors advising you that they can restructure your debts so that you make one lower monthly payment which is affordable to you.
You may have been persuaded you that Debt Management is the answer and you may be paying your debts under such a programme. However this may not be the right advice for you. There may well be a conflict of interests arising between you and the Debt Management company and you may not even be aware of it.
The way Debt Management companies make their profit is by advising you that a Debt Management programme is right for you. This may be correct some of the time but it is not always the case. You may have noticed that while repaying your debts under a Debt Management programme the balances have not decreased by the value of the repayments that you are making. This is usually an indicator that Debt Management is not necessarily the right advice for you.
There could be several reasons why your balances are not decreasing. Firstly your Debt Management company may not have arranged with your creditors that interest charges should be frozen. If this is the case you may well find that the repayments you are making under the programme do not cover the accruing interest and charges. If this happens over a period of time far from getting out of debt, your debts will get bigger.
Can we help you?
If you can answer 'Yes' to any of these questions we can help:
- Do you dread the post or the telephone ringing?
- Does your expenditure exceed your income?
- Are you finding it hard to meet your monthly payments to your creditors?
- Are your creditors pursuing you for payments through the courts?
- Do you have mortgage arrears and do you worry about repossession?
- Are you already on a debt management programme and fed up with paying fees?
- Will it take longer than five years to discharge your debts?
We can offer the following in relation to your debt problems:
- Free initial advice and an independent assessment of how best to tackle your problems.
- Dealing with court proceedings that have been issued.
- Defending possession proceedings.
- Advice on alternatives to Debt Management.
Debt Collection Laws and Money Advice
Being pursued by creditors for debts that you cannot afford to repay is incredibly stressful. We can assist by:
- Rescheduling payments with your creditors.
- Advising on bankruptcy whether by a creditor or by your own application.
- Advising on whether an Individual Voluntary Arrangement would be suitable for you.
- Assisting you in defending County Court claims and mortgage repossession applications.
- Advising you on action that you can take when bailiffs have been appointed.
- Assisting you in defending applications for council tax liability orders.
What is bankruptcy?
Bankruptcy is essentially a declaration to your creditors that you cannot afford to repay your debt . Once a bankruptcy order has been made your creditors will not be able to contact you directly again. New regulations in bankruptcy effective from the 1st April 2004 will allow for automatic discharge from bankruptcy within 12months. You will be required to make payment towards bankruptcy debts for a total of 3 years after the bankruptcy order has been made.
What is an Individual Voluntary Arrangement (IVA)?
An IVA is a legal agreement drawn up between the person(s) in debt (lets assume this is you), all creditors to whom money is owed (banks, credit cards etc) and a Licensed Insolvency Practitioner. It is a legal process by which your unsecured creditors cannot pursue you for payment of your debts outside of the agreement.
In an IVA you agree to pay a single, reduced, affordable, monthly payment for a period between 3 and 5 years after which the unpaid part of the debt is written off by the creditors. The creditors are aware of this and are in agreement with it.
Each creditor gets a share of the monthly payment, usually in year 3 and year 5 of the arrangement, so no payments are made to individual creditors on an ongoing basis.
During the repayment period all interest charges are frozen and all demands for money are stopped.
The arrangement is drawn up by the Licensed Insolvency Practitioner who then administers the arrangement.
Fees (Debt and Money)
Fees incurred for resolving debts depend on the solution applied. To gain an idea of what may be involved please contact us for a free, no obligation discussion.