Tag Archives: Paralegal

Law, News

When you need to go to court over a business debt

Written by Amanda Hamilton, Patron of the National Association of Licenced Paralegals (NALP)

When your business has a debt, before proceeding to court to chase it, consider the length of time and cost involved, and also the stress. Mediation is usually a good avenue to explore possible settlements, but only if both parties are willing to meet halfway. If all attempts to compromise fail, what do you do?

You can represent your business yourself, as a litigant in person (LIP), but you need to understand the steps and know where to get help if needed. Help doesn’t necessarily mean a solicitor or a barrister. You can engage the services of a licenced paralegal practitioner to help you. They are much more cost effective and can do almost all the same jobs as a solicitor, with a few exceptions, known as ‘Reserved Activities’. For example, they cannot ‘conduct litigation’ meaning that they are not able to be an agent for you to receive service of documents or letters on your behalf, nor can they sign or file court documents on your behalf.

However, they can assist you in your role as a LIP, for example by completing forms and drafting documents on your behalf, but you will need to sign and submit them yourself.

First steps

You must comply with Civil Procedure Rules and this means that the other party (the potential defendant) must be sent a letter describing what the issues are and what is required to resolve them, and to give a date by which this needs to be done. Failing to comply with such resolution or timeline will mean that court action will be taken without further notice. This is known as the ‘pre-action protocol’.

If there is no response, or the matter has not been resolved to the satisfaction of the claimant, then proceedings can be commenced.

Size matters

On one hand, collecting a debt is one type of case that can be dealt with relatively simply if the debt is not more than £10,000, as this can be heard by a District Judge in chambers rather than in open court. On the other hand, anything with a higher claim or more complexity will be dealt with in open court.

When a claim from is issued, it is done so in triplicate: one is kept by the court, the other is given to the claimant and the third is sent to the Defendant with a response pack. This requires the defendant to respond within 14 days, either by producing a defence or by acknowledging receipt and stating that a defence will follow. Of course, the defendants may just decide to settle the case at this point, but if a defence is filed, then the ball starts rolling and the costs start to pile up.

At this point, the next stage is very much dependent on what type of case it is. The case will be allocated to a court ‘track’, and this will depend on the subject matter of the case itself.

Various tracks

There are three tracks. Essentially track allocation depends on the value and complexity of the case and the CPR overriding objective which relates to ‘representation’, ‘fairness’ and ‘proportionate cost’.

With more complex cases, there may even be a requirement to have a ‘costs budget’ hearing requiring the parties to assess the costs they may incur throughout the court proceedings, and this will include, lawyers’ costs for drafting and attendance at hearings, expert witness costs if required and permitted, and can include your own LIP costs in dealing with the matter personally, plus any incidental costs incurred. At such a hearing the judge will decide what may be fair in the circumstances and adjust the draft budget produced by both parties.

Thereafter, the court case will unfold according to the Direction Order of the court which gives precise dates and times when each stage has to be completed.

Know when more help is required

If you are dealing with a complex case, you need to ask yourself whether you need to instruct a solicitor or a direct access barrister to assist. There are many areas where a paralegal practitioner can help you, but sometimes a level of specialised expertise may be required. Consider whether a barrister could be instructed directly. This may cut out a huge amount of cost, but there is a downside. As a LIP, you will be receiving all communications from the other side’s solicitors, and this could add extra pressure in what may already be a stressful situation.

ABOUT THE AUTHOR

Amanda Hamilton is the Patron of the National Association of Licensed Paralegals (NALP), a non-profit membership body and the only paralegal body that is recognised as an awarding organisation by Ofqual (the regulator of qualifications in England). Through its Centres around the country, accredited and recognised professional paralegal qualifications are offered for those looking for a career as a paralegal professional.

Web: http://www.nationalparalegals.co.uk

Twitter: @NALP_UK

Facebook: https://www.facebook.com/NationalAssocationsofLicensedParalegals/

LinkedIn – https://www.linkedin.com/company/national-association-of-licensed-paralegals/

Careers, Law, News

Choosing the Right Qualification for a Paralegal Business

By Amanda Hamilton, CEO, National Association of Licenced Paralegals (NALP)

Setting up your own Paralegal practice can be very rewarding. You can carry on your business in your own name, in partnership with other paralegals or incorporate as a limited company and use another name. Apart from the ‘reserved activities’, you can operate in much the same way as a solicitor, e.g. you can operate as a Paralegal Firm and have partners.

You must always remember that your clients are consumers of legal services. They want to know that the person offering legal assistance is qualified and competent to do so. Ofqual recognised paralegal qualifications are available, and there are quite a variety on offer. Which is right for you is very much dependent on why you want to enrol in such a qualification. So, let’s go through the possible reasons, one by one.

Curiosity, necessity or general interest

Many individuals enrol for a legal course when something happens to them that may affect or reflect on their legal status. This could be a dispute with a neighbour, or a debt owed by you or to you, or matters relating to property (renting, buying or being a landlord) or possibly something related to family or even a criminal offence.

If it is just basic legal information that is sought, such as how laws are made and what laws are meant to do and how the English Legal System works, then a Level 3 Paralegal Qualification could be appropriate.

A Level 3 is equivalent to an ‘A’ Level. There are three possibilities at Level 3. An Award may be the best economic option. It is only two units of study and does not cost the earth. If further knowledge is required, such as how to draft a Will or gaining details on how the Civil litigation process works, then a Level 3 Certificate may be appropriate. This is two further units of study, so four in all. Finally, a Diploma is two further units of study – six in all.

This is a great way to gain general knowledge and help you understand your rights, it is also a perfect beginner’s course for anyone seriously interested in progressing their law career.

Enhancing current job knowledge and know-how, or changing careers

Some people find themselves in a role involving a legal element where their only credential is the experience of doing the job itself. You may not have a background in law, but since you have been doing the job for so long, you know exactly what to do. However, you may not know ‘why’ you are doing it and the legal reasons behind it.

At a certain point you may therefore wish to bolster up your experience with particular knowledge of the law by completing a qualification. This will also benefit an employer as they would have relevantly qualified employees which adds to customer confidence.

A Level 3 Paralegal Certificate or Diploma would suffice. However, if the employee is mature and has already gained qualifications at Level 3 or above, a Level 4 Diploma would be appropriate. Unlike the Level 3, there are ten mandatory subject areas of law to study, so this is quite a commitment, but a successful graduate would be able to describe themselves as a fully qualified paralegal.

A Level 4 Paralegal Diploma would also be appropriate for someone who wishes to change careers. Maybe this person already has a degree in another discipline and is considering a change into the legal profession. Conventional careers into the profession take time: qualification as a solicitor may take anything from four to six years, and to become a barrister it is three to five years, depending on whether an individual has a Law Degree or not. The cost is also quite hefty taking into consideration the fees for a degree and postgraduate course fees. Whereas, qualifying as a Paralegal will take approximately one year at a small percentage of those costs.

Forging out a career as a Paralegal Professional

Going straight from school to enrol onto Level 4 Paralegal Diploma is the quickest way to get qualified in law. Then the next step is to get as much experience under your belt as you can, and this may not just be with a solicitor.

It is a fallacy that all paralegals work for solicitors. While many of them do, a substantial number do not. Experience can be gained by working in companies, organisations, or charities. In fact, most organisations and businesses have an element of legality to what they do, and paralegals fill those legal roles. Experience can be gained anywhere: from Premiership football clubs to car manufacturers to movie production companies to retail outlets such as ASDA or Morrisons.

If you have already gained a law degree you may feel that you’ve already spent enough time and money and do not wish to pursue qualification as a solicitor or barrister. If that is the case, you can enrol onto a Paralegal Level 7 Diploma.  This qualification bridges the gap between your academic law degree, and practice and procedural law and will qualify you as a paralegal.

Once enough relevant legal experience is gained and can be evidenced, an application can be made for a Licence to Practise. This is subject to attaining Professional Indemnity Insurance and fulfilling other eligibility criteria. This would enable a Paralegal to set up their own Paralegal Practice and have their own clients (subject to strict practice guidelines which have to be adhered to in respect of reserved activities and holding out). More information can be found on the NALP website: nationalparalegals.co.uk

If a career in law is your dream, then don’t let time and cost hold you back.

ABOUT THE AUTHOR

Amanda Hamilton is Chief Executive of the National Association of Licenced Paralegals (NALP), a non-profit membership body and the only paralegal body that is recognised as an awarding organisation by Ofqual (the regulator of qualifications in England). Through its Centres around the country, accredited and recognised professional paralegal qualifications are offered for those looking for a career as a paralegal professional.

Web: http://www.nationalparalegals.co.uk

Twitter: @NALP_UK

Finance and Banking, News

What can you do if your business is owed money?

By Amanda Hamilton, Chief Executive of the National Association of Licensed Paralegals (NALP)

Unfortunately, unpaid invoices and being owed money is something every business has to deal with. And there are times when it is necessary to involve the courts. But a word of caution: before going down this road, ask yourself if this debt is really worth the time and energy required to collect it, if you stand a good chance of receiving the money (ie can the other party pay) and if you are genuinely willing to take it all the way to the courts. If the answer to any of the above is ‘no’, then, frustrating as it may be, it can sometimes be better to write off the debt and move on with your life.

However, if you don’t want to do this, what should you do?

One option is to approach the other party by making ‘gentle’ contact to say that this invoice/debt is outstanding, and while you understand that times are hard, would there be a possibility of paying it off by instalments? If they are amenable and accept that the money is outstanding, you can then negotiate a regular payment that would be acceptable to both parties. After all, if you decided to take the huge step of taking that person or business to court, and you win your case, ultimately, the court would ask the debtor that very same question: ‘how much can you afford to pay monthly?’

For the ‘soft’ touch to be effective, negotiation is the key, but if this doesn’t work, then you have the option to institute court proceedings.

The first step is to give the other party as much notice as possible that you are owed this money and to ask for payment. There is a ‘pre-action protocol’ that you must do before any court proceedings are commenced, which is otherwise referred to as a ‘letter before action’, which must state who you are and why you are asking for the debt to be paid. It could be money owed for services rendered and an unpaid invoice (eg decoration or gardening) or it could be for not fulfilling a contract. Whatever the reason is, you must put all the relevant details in a letter and include with it any evidence such as a fee invoice that you submitted, or a copy of a contract signed by both parties etc.

The letter should also give the other party a timeframe to respond either to make payment in full, or to make contact to negotiate how to pay it off. The letter should also make it clear that you are open to discussion, but that if you have not had a response by the chosen date, then you may decide to commence legal proceedings without further notice.

You should always ensure you have sufficient evidence and reason for taking court action before you commence a claim.

Starting court proceedings can be done online if it is a fairly straight forward small claim without complications. And online fees to do so are slightly less than sending in paper versions. The fees go on a sliding scale dependent on how much is owed. For example, for claim amounts from below £300 up to £1500, the court fee is between £35-£70 if you issue online – a little more if not. Claims worth over £1500 up to and beyond £10,000 cannot be issued online and the fees range from £110 – to 5% of the claim for any that are over £10,000.

The claim form should be completed and usually once stamped by the court, a copy gets sent to the other party, a copy is kept by the court, and you get the third copy. The court usually sends the issued claim form to the other party (the defendant) with a response pack containing a number of documents and information on the options that the defendant can choose: to pay the debt in full, to acknowledge service of the claim form and indicate that they want to defend, and various other options. However, whatever the defendant decides to do, they must contact the court within 14 days, failing which, you may have the right to get a default judgment against them.

Further details on how to make a claim and the fees can be found at: https://www.gov.uk/make-court-claim-for-money/court-fees

Although the small claims system is relatively straightforward, if you feel you need assistance, you can always call upon the services of a paralegal who will be able to help you at a reasonable cost. You can locate one on the National Paralegal Register: https://www.nationalparalegals.co.uk/national-paralegal-register/

ABOUT THE AUTHOR

Amanda Hamilton is Chief Executive of the National Association of Licenced Paralegals (NALP), a non-profit membership body and the only paralegal body that is recognised as an awarding organisation by Ofqual (the regulator of qualifications in England). Through its Centres around the country, accredited and recognised professional paralegal qualifications are offered for those looking for a career as a paralegal professional.

Web: http://www.nationalparalegals.co.uk