An explanation of the CLS category of law 'Debt' including common issues and signposting to legal advice.
Also known as: money advice/debt counselling
This category covers help in relation to money you owe. For example, you may need advice because you are bankrupt or insolvent. You may want to know about your legal position if you are behind with your mortgage, tax or investment payments.
Help for anyone struggling to meet financial commitments.
Includes help to: maximize benefit income-schedule debt repayments to affordable levels; negotiate with creditors and represent in County Court debt recovery and home repossession cases, if necessary.
A money adviser will work with a client to produce a financial statement which will combine and compare total income with total outgoings. Money can only be demanded by creditors to pay debts if the person has the money, after reasonable family/ personal expenditure has been allowed for.
Money advisers work within nationally and County Court recognised procedures to enable people to live on reasonable means, regardless of their debt, and repay within their means. Money advisers will also ensure that certain important debts are given more priority over others. This important aspect of debt repayment will not be achieved if people in significant debt attempt to negotiate separately with all the creditors they owe money to.
Important note: Money advice is not the same as debt consolidation loan services. This often means transferring what is termed 'unsecured debt' into a debt secured on your home (or other asset). This is not something money advisers would often recommend. CLS Money advisers are totally independent and impartial and do not work for the private financial sector.
Community Legal Advice
Community Legal Advice telephone help line: 0845 345 4 34. Use the helpline to find a suitable CLS advice provider in your area.
The online CLS Legal Adviser Directory
Use the online search directory to find a CLS provider in your area.
Information leaflets
Also try one of the information leaflets written in conjunction with the Citizens Advice, The Consumers Association and nationally recognised solicitors practices.
Other organisations offering help and advice
Help-line offering information and advice on debt, including bank, credit card, finance, house, mortgage arrears, council tax, catalogues, hire purchase and utility debts.
0808 808 4000; Monday - Friday 9am-9pm and Saturday 9.30am - 1pm.
Website offering a number of resources including information packs, sample letters to creditors and factsheets.
Debt Advice Service - the UK Insolvency Helpline is a free telephone advice service for people with debt problems. The service also operates teams of outreach workers operating in Essex and throughout Greater & Outer London.
0800 074 6918 - Monday - Friday 9am-9pm and Saturday 9.30am - 4pm.
