Solicitors Letter threatening Court Action for Debts

Have you received a Solicitor’s Letter threatening Court Action for Debts?

If you miss payments to your creditors you may start to get letters from solicitors chasing up money owed.

Receiving a letter from a UK solicitor is part of the debt collection process and usually happens after you’ve received a default notice.

If you are receiving threatening letters from solicitors it does not mean you will go to court, but it is a sign that arrears on your debt are serious.

The worst thing anyone in debt can do is just ignore their creditors because the debts will escalate further.

In this Solicitors Letter threatening Court Action for Unsecured Debts guide, we will explain everything you need to know about the next steps you can take.

Why am I getting threatening letters from a solicitor about debts?

Here are some reasons why you might be receiving solicitor letters about debts you owe:

  • Solicitors act as debt collection agencies for many lenders
  • The original creditor might have sold your unsecured debts to a solicitor (the letters will say to pay the solicitor direct in this case)
  • The original creditor might have appointed a solicitor to collect their debts on their behalf (the letters will say to pay the original creditor direct in this case)
  • The solicitor may be part of your creditor’s collection department using a different name (compare the addresses to see if they’re similar)
  • The creditor is using a solicitor because they’re taking you to court. This is not as common as you might think, and they must send you a ‘letter of claim’ in the post before sending any court forms.
  • Before any legal proceedings are issued the Letter Before Action is one of the requirements of the debt recovery process.

Worried by solicitor letters chasing you for your debts?

Receiving letters from solicitors chasing you for your debts can be a stressful time but all debt collectors, bailiffs, and solicitors need to follow the law.

The solicitors can only legally ask you to repay money you can afford to pay and you have rights so it is advised to speak with a professional debt advisor.

When speaking to a debt advisor there are no costs involved in understanding all the unsecured debt solution plans available to you in April 2024.

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Ignoring the debt letters is not advised and you should seek expert debt advice before making any informed decisions or signing up to any DMP companies, IVA companies, or thinking about alternatives to bankruptcy.

What Happens If I Ignore Solicitors Chasing For Debts I Owe?

If debtors do not take any action to the letter before action the next stage in the legal process is to issue legal action through the County Court.

Solicitors must first take you to court to issue a County Court Judgment (CCJ) for any debts owed that you ignore.

Once a CCJ is registered against your credit file, legally they can send bailiffs to take assets to help repay debts.

Or seek for an attachment of earnings/charging order so money is taken directly from payroll to repay any debts.

Seeking help from an impartial debt consultant can be completely free of charge for the initial consultation and they can advise you on the best debt plans specifically for your financial credit situation.

What can solicitors do to collect a debt?

The first stage of the debt recovery process is usually a debt recovery letter which informs you that you owe the business money.

Solicitors have no extra powers in chasing debts than your original creditor.

Solicitors in the United Kingdom can write to you or call you to ask for payments but cannot do anything extra your original creditor could do.

Interest rates and charges can continue on your unpaid debts or the solicitors could take you to court (but this is very uncommon).

The same rules apply for solicitors chasing your debts because they have to comply with the Financial Conduct Authority when they collect any unsecured debts as are regulated by the Consumer Credit Act.

The most common UK debt types are credit card debts, overdrafts, catalogue debts, payday loans, or buy now pay later purchases.

Solicitors chasing unsecured debts also have their own organisation called the Solicitors Regulation Authority that regulates what they do. This means solicitors can’t harass you or treat you unfairly when trying to get monies owed.

If the person pays their outstanding debt before the deadline they can avoid court proceedings altogether.

Some Solicitors are employed to take legal action when it comes to debt recovery.

What should I do if I hear from a solicitor about unpaid debts?

You don’t need to pay for your own solicitor to defend any debts owed.

You need to seek free impartial debt help from a professional financial advisor who can explain all the different options available in April 2024.

Did You Know You Can Write Off Up To 85% Of Your Debts?

Do I Qualify?

Threatening letters or phone calls from a solicitor about your unpaid debts are usually a sign that your financial situation is getting worse.

Get in touch if you’re not sure what you need to do to the expert debt advisors in the UK. The top-rated debt advisors will provide expert debt advice, check your disposable income budgets you can afford and recommend the best debt solution plan for you.

The insolvency practitioners or debt help companies can deal with the solicitor directly and any other creditors you have.

Popular Questions

Are solicitors chasing debts a legitimate company?

Check to see whether the Solicitors is a legitimate company by checking they’re licensed to operate in England, Wales and other registered territories.

Check the solicitor company functions under a registered number and are authorised and regulated by several bodies.

Most solicitors will be legit and have licensing to collect debts on creditors’ behalf in the United Kingdom.

Can Debts Solicitors are Chasing Be Written Off?

Debts that solicitors are chasing may be eligible to be lawfully written off.

In England, this is done through an Individual Voluntary Arrangement (IVA), which combines all of your unsecured debt into a single monthly payment that you can manage over a specified period of time.

The debt is written off at the end of the period.

A safeguarded trust deed is a similar mechanism used in Scotland.

Are Debts Chased By Solicitors Enforceable?

To be classified as statute-barred and not enforceable by law, the debt must meet the following criteria:

  • the creditor has not filed a County Court Claims against you
  • no payment has been made against the debt during the limitation period
  • you have not admitted to the debt in writing during the limitation period

Letter Before Action

When a creditor authorises a solicitor to send the letter you are making the debtor aware you are serious about taking the debts further.

Creditors appoint solicitors to send Letter Before Action letters because the majority of debtors pay at the Letter Before Action stage.

Ignoring the letter before action would likely lead to further legal action being taken through the County Court.

A County Court Judgment is a court order that confirms that the debtor has defaulted on payment and CCJ is added to the credit file.

Once a CCJ (County Court Judgment) has been obtained, it is then possible to ‘enforce’ that debt immediately by instructing a Bailiff or High Court Enforcement Officer.

There is usually a 7 day pay period when an Letter Before Action is issued and this is an essential requirement of the debt recovery process.

Check out our guide if you want to understand more about a Letter Before Action (LBA).

List of UK Solicitors Chasing Debts

Here is a list of UK Solicitors Chasing debt.

What Can Solicitors Chasing Debts Do?

Solicitors Can:

  • Officially ask you to settle debts
  • Send you written communication to discuss debt details and payment plans
  • Call your home number or work number
  • Make visits to your house but remain outside

Solicitors Cannot:

  • Disrupt your family’s peace
  • Be intimidating or threatening in any way
  • Make visits to your office
  • Take possession of your things
  • Share information about debts to anyone else

If the person pays their outstanding debt before the deadline they can avoid court proceedings all together.

Summary

If you are not sure how to handle these legal matters where solicitors are sending letters to chase for debts owed you need to seek free professional debt advice.

You can easily avoid legal action being taken against you, if you get a debt advisor.

In Britain, there are debt charities set up to assist you like Stepchange or Citizens Advice which can try to understand and help your current financial difficulties.

Before speaking or agreeing to any repayment plans find out more information on government debt help schemes you might be entitled to.

Debt recovery  statistics show that in 70% of cases court proceedings have been avoided where a letter is issued.

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