By Mr Bankruptcy
31st July 2019
When the exemption for insolvency practitioners from the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) ended in April 2016 it helped reiterate the importance of the role alternative dispute resolution in reaching a settlement.
The impact of LAPSO
LAPSO removed the no-win no fee arrangements that meant the uplift charge on legal fees under a conditional fee agreement and the premium on an “After The Event” insurance policy for successful claims could no longer be recovered from the opponent as part of insolvency litigation. It would now be the claimant who was liable for costs. There was a concern that this would deter insolvency claims.
The reality has been that when determining costs to be awarded, the courts will always have regard to the efforts made by parties to try to resolve the dispute prior to starting court proceedings and the reform has highlighted the benefits to claimants of trying alternative dispute resolutions before risking the cost of full litigation.
Alternative Dispute Resolution
In an attempt to seek settlement without the means for court proceedings there are several alternative dispute resolution pathways that insolvency practitioners can employ, including arbitration, negotiation and conciliation. One of the most common approaches to resolve disputes is mediation.
Conducted by a professional mediator who is neutral to all parties, a mediator’s role is to assist in disputes to enable parties to negotiate their own settlement. This approach to dispute resolution has several advantages:
Debt advisors will always seek to ensure the best outcome for those they represent and alternative dispute resolution can be an integral approach to this. The fear of possible court proceedings and their associated costs should not deter you from seeking advice and support because there is likely to be an alternative way to reaching an acceptable outcome.
James Rosa Associates
James Rosa Associates is a firm of debt advisors and debt adjustors.
With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.
Our services include:
● Insolvency support
● Negotiated settlements
● Personal assisted bankruptcy
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Do you qualify for a free consultation?
If you need to deal with unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email firstname.lastname@example.org to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.