How best to pay costs?

Money is getting tight after X stopped maintenance. Luckily I have a ''Bank of Mum and Dad'' that I can ask for help from but I don''t want to rely on them. My bank has already refused a loan for me based on my tiny salary.

Question is, do I try and pay as I go any court/solicitor costs and add it to monthly expenses on a need basis or is it better to get a lump sum loan?

Either way my parents will foot the bill until we sort the finances.

Thanks

Hi Nofool,

What you must be careful of is the money your parents give you being classed as a "soft loan". Make sure you get a contract drawn up with a payback schedule. Even if you are only paying £20 a month, its important you do not miss a payment. Have your parents have it written into the contract that the loan is to enable you to have legal representation.

Many solicitors now require monthly payment and should give you an estimated cost of the whole case at the beginning. Each month you will receive a bill and spreadsheet detailing costs.

I personally think this is the best way of doing it, both you and your parents know exactly where you are.

Hope that helps,

Best wishes,

NWTT.

It might be possible to negotiate with your solicitor to defer costs (but not disbursements such as court fees and barristers fees) until the end of the case.

Your parents could provide a guarantee for the monies in the event that you default on payment. This would ensure that you remain liable for the fees and as the monies are not loaned to you, they cannot be seen as a soft loan.

This does involve your solicitor agreeing to deferring payment of the costs which they might not do.

Charles

Thank you NWTT and Charles,

I have searched for a loan agreement online and I think I have found a DIY one through a company offering 30 day free trial.