Most people who receive a claim from a debt purchaser go into overdrive and worry about getting help to defend themselves. They often end up getting help off the CAB or internet forums because they worry that they cant afford a lawyer, after all they’re being pursued for a debt so obviously they don’t have much money, right?
The problem is, and i have seen this first hand three times this week, they don’t look at their insurance policies. Many people have home or motor insurance, and many have legal expense insurance, which means generally that there may well be cover available to fund legal representation and of course legal costs if the Claim is lost.
However its amazing just how many people overlook this.
Most solicitors practices will happily write to the insurers to enquire if they will cover the Claim if you dont know how to approach this, so if you arent confident with the case yourself get help, there may well be funding options that mean you arent out of touch from proper representation.
There are also other options, such as no win no fee, Damages based agreements or fixed fees. All of which can provide a good funding option to defend a claim against you.
My firm has been working on a fixed fee option for small claims cases, we are hoping to release details on LB Compare shortly, and by the end of this week.
The message should be clear though, funding isnt always a problem, the most important thing is to check all of your options.