Legal Aid and Free Legal Help for Debt Problems

Is legal aid available for debt?

GOV.UK says you cannot get legal aid for debt problems unless you might lose your home. In practice, that means legal aid for debt is largely restricted to cases such as a mortgage possession claim, where there is a real risk of losing the place you live. Most ordinary debt problems, such as credit cardHow Credit Cards Work in the UKHow UK credit cards work: interest, APR, minimum payments, interest-free periods, fees, Section 75 protection and how to use a card without getting into debt.Read more → arrearsArrearsArrears are payments that were due but have not been made, such as missed rent, mortgage, council tax or loan instalments.Read more →, loans, overdraftsOverdrafts Explained: Costs, Rules and AlternativesHow UK overdrafts work: arranged and unarranged, how interest is charged, the effect on credit files, the risks and cheaper alternatives to borrowing.Read more → or a county court claim for an unpaid bill, are not covered. Legal aid also depends on your income and savings, and on whether the case meets the legal criteria.

When you might qualify

You could be eligible for legal aid if:

1. You are facing possession of your home, for example because of mortgage arrears or a secured loan
2. You meet the financial limits on income and capital
3. Your case meets the legal criteria for help

Free help for the debt itself

Even if legal aid does not apply, you can get free advice about the legal side of a debt problem.

• Debt charities such as StepChange, National Debtline and Citizens Advice give free advice, including on court claims, CCJs, debt collectors and bailiffs.
• Law centres in some areas help with complex legal problems.
• Court-based advice schemes sometimes operate on hearing days, offering last-minute help.
• Pro bono schemes run by lawyers can provide free advice for some cases.
• Your home insurance or union may include a legal helpline, which is worth checking.

Dealing with a court claim yourself

Many debt claims can be handled without a solicitor. You may receive a claim form for money, and you must respond within the deadline. Options include paying, admitting the debt and offering to pay by instalments, defending the claim if you dispute it, or asking for time. If you ignore the claim, the creditorHow to Deal with Creditors: Communication and NegotiationPractical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.Read more → can ask the court for a judgment in defaultDefaultA default is a record on your credit file showing that you have seriously fallen behind on an agreement, usually after several months of missed payments.Read more →. Read our guide to CCJs for the steps and what a judgment means, and debt collection in the UK for your rights when collectors contact you.

Questions to ask a solicitor

If you pay for a solicitor, agree the cost first and ask the following.

• What is your fee, and how is it calculated?
• Do you specialise in debt or consumer law?
• What are my realistic chances, and what are the alternatives?
• Is there a cheaper or free way to achieve the same result?

Formal debt solutions and legal advice

A Debt Relief OrderDebt Relief Order (DRO)A Debt Relief Order is a formal solution for people with low income, low debt and few assets. Learn how DROs work, eligibility criteria and what happens to your debts.Read more → must be applied for through an approved intermediary, and Breathing SpaceBreathing Space (Debt Respite Scheme)Breathing Space is a government scheme giving you legal protection from creditor action for up to 60 days while you get debt advice. Learn how it works and who qualifies.Read more → through an authorised adviser, both of whom are usually free debt advisers. An IVA is arranged by a licensed insolvency practitioner. Bankruptcy is applied for through the official online service. You do not need a solicitor for any of these, although you may use one if you wish. Compare them in our guide to IVA, DMP, DRO and bankruptcy.

If you are in a hurry

If you have a hearing date, a possession claim or bailiffs at the door, contact a free adviser at once and read our guide to urgent debt help. Courts expect you to respond to claims on time, and early action can prevent costs from piling up.

A worked example

Imagine you receive a county court claim for £3,000 on an unpaid credit card. Legal aid is not available, but you can still respond. You complete the response form on time, admit the debt and offer to pay by instalments you can afford, supported by a budget. A free adviser helps you work out the figures. The court sets a payment order based on your offer, and the creditor cannot enforce more than that while you keep to it. Compare this with ignoring the claim, which could lead to a default judgment and enforcement. Free help made the difference.

What to do if you are refused help

If a legal aid provider says you do not qualify, ask why and whether there is another route. Contact a free debt adviser, who can often help with the court process. If your case involves your home, ask about housing advice services and duty solicitors at the court, who sometimes give free help on the day.

Keeping costs under control

If you decide to pay for legal help, agree a fixed fee or a cap before work starts, ask for a written estimate and check whether the work could be done more cheaply by a debt charity. Keep copies of everything and ask for an itemised bill. If you are unhappy with a solicitor's service, use their complaints procedure and, if needed, the Legal Ombudsman.