How a Legal Advisor Can Help You Resolve Debt and Bankruptcy Issues?

Too many debts can lead to stress, and then you have to look into all the legal issues regarding bankruptcy. A competent legal advisor is best to guide you on the other options available to address your financial dilemma and advise you on the best way out. Whether you are harassed by creditors, consider bankruptcy, or look for other means to resolve a financial problem, a legal advisor can make all the difference.

1. Understanding Debt and Bankruptcy Law in the United Kingdom:

In the UK, there are specific statutes that govern debt and bankruptcy; and mainly the Insolvency Act 1986. Debt is defined as rights and obligations of debtors and creditors that are owed to people. The legal framework that emerged has provided several forms of debts resolution such as informal agreements, formal insolvency procedures, and bankruptcy.

As a legal advisor, one is expected, in fact, to first examine your financial situation and explain your rights and obligations in law. From there, he or she would advise you if bankruptcy is the appropriate remedy or if other alternatives exist that would serve your needs better.

2. Defending Your Rights:

The very first advantage, of course, is that a legal consultant can keep creditor action at bay. A creditor can send you a statutory demand, petition a County Court Judgment (CCJ) against you, or initiate bankruptcy proceedings to recover a debt. When there are legal proceedings against you, seeking help from a legal advisor can be used to negotiate with the creditor, contest unreasonable demands, or apply to set aside statutory demand.

Under UK law, creditors have specific ways in which they can pursue debts. He ensures that these procedures are adhered to, which then protects you from the harassment or illegal practice that’s taking place.

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3. All Debt Relief Methods within Reach:

So, when bankruptcy is not the solution, your trained legal advisor will guide you to other sources of remedy.

• Individual Voluntary Arrangement (IVA): This is a legally binding agreement requiring you to pay off some of your debts over a certain period usually five years. Your legal advisor will sit with the creditors and draft the IVA proposal.
• Debt Relief Order (DRO): A DRO may also allow you to write off some of your debts, after a year, if you are low-income and have very few resources. Your solicitor can assess whether you qualify and walk you through the application process.
• Debt Management Plan (DMP): You will agree with your creditors to pay them at a feasible rate while not legally binding, but your advisor can help put this in place and negotiate with creditors.

A lawyer gives complete guidance through this procedure if you will be forced to declare bankruptcy. They’ll explain what to expect: loss of assets, restrictions while in bankruptcy, and how it affects as regards one’s credit rating.

A lawyer helps prepare and submit your petition in bankruptcy to the court or responds to one based on a creditor’s petition in bankruptcy. He also acts before the court, representing the client’s interests at court hearings, whereby the client is informed on what are his obligations and complies accordingly.

4. Post-bankruptcy assistance:

A lawyer helps post-bankruptcy clients to recover their financial status. The bankruptcy terms include cooperation with the Official Receiver and income payment management.

Debt and bankruptcy problems can be daunting, but with a legal advisor, you could access professional measures on behalf of the advocates. A legal advisor would assist in understanding all the options that may avail rights above the most favorable outcome that could be attained from the law so that one would reinstate control over the financial future.

For further advice please get in touch with our team today by calling 020 8538 0182 or +44 7857 809932, or you can email us on [email protected].

Please note these blogs are to enhance your knowledge and are not tailored advice, for specific advice please get in touch with our outstanding team.