how can a lawyer help you with debt

by Dr. Henry Towne Published 2 years ago Updated 1 year ago 4 min read

A debt relief attorney can offer legal advice.
If you are sued by your creditors, the attorney can represent you in court.
If a creditor violates the FDCPA, your attorney can help you sue them.
Your attorney can help you make the best decisions for your financial predicament.
An attorney can help you file a bankruptcy petition should you need to do so.

A debt settlement attorney will help you decide on a plan of action for your case. In a debt consolidation program, your debts will all be amassed into one sum of debt. You will typically have to pay a higher interest rate when your debts are amassed into this lump sum.

Full Answer

Why should you hire a debt settlement lawyer?

Jul 18, 2020 · A lawyer can help you truly analyze and understand your debt. Together, you can sort through your mortgage, car payments, student loans, credit cards bills, and additional …

Do I need a lawyer for a credit card debt lawsuit?

Jul 30, 2021 · A debt settlement lawyer is a legal professional who knows and expertise to help you sort out your financial troubles. They negotiate the deal with creditors on behalf of their …

Should I hire a lawyer to negotiate with creditors?

Sep 03, 2020 · Our firm routinely settles the debt for clients who have not been successful in attempting to settle the debt on their own. Using a lawyer can help tremendously with debt …

Should I hire a lawyer to help with wage garnishment?

The road to getting out of debt can be easy. With the help of a debt settlement lawyer, you can pick out a plan that helps you overcome financial struggles. Choosing whether to pursue debt …

Is it better to settle a debt or go to court?

Settle the Debt by Paying Less Than the Full Amount

Once a lawsuit is filed, it creates a new opportunity for you to negotiate a settlement because you'll have a new person to negotiate with: the debt collection lawyer.Nov 29, 2021

How much should I offer to settle a debt?

Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.

How can I settle down my debt?

Debt settlement involves offering a lump-sum payment to a creditor in exchange for a portion of your debt being forgiven. To successfully negotiate a debt settlement plan, it is important to stop minimum monthly payments on that debt, which will incur late fees and interest and damage your credit score.

Can I hire someone to negotiate my debt?

In almost all cases, it's better to hire a reputable attorney rather than a debt settlement company if you want help negotiating a debt settlement. And, in some cases, you might be better off settling the debts on your own.

How can I get out of debt without paying?

Ask for a raise at work or move to a higher-paying job, if you can. Get a side-hustle. Start to sell valuable things, like furniture or expensive jewelry, to cover the outstanding debt. Ask for assistance: Contact your lenders and creditors and ask about lowering your monthly payment, interest rate or both.Sep 2, 2021

What should you not say to debt collectors?

3 Things You Should NEVER Say To A Debt Collector

Additional Phone Numbers (other than what they already have)
Email Addresses.
Mailing Address (unless you intend on coming to a payment agreement)
Employer or Past Employers.
Family Information (ex. ...
Bank Account Information.
Credit Card Number.
Social Security Number.

Apr 6, 2022

How do I pay off old debt in collections?

Contact the agency and make payments.

Pay in full. If you owe the money and have the money, you should pay the money.
Negotiate a payment plan using your pro rata plan. Let them know you can pay something each month and show them how.
Ask to settle the account.

Apr 19, 2022

Is it worth it to settle debt?

It is always better to pay off your debt in full if possible. While settling an account won't damage your credit as much as not paying at all, a status of "settled" on your credit report is still considered negative.Apr 16, 2021

Is it better to settle or pay in full?

Generally speaking, having a debt listed as paid in full on your credit reports sends a more positive signal to lenders than having one or more debts listed as settled. Payment history accounts for 35% of your FICO credit score, so the fewer negative marks you have—such as late payments or settled debts—the better.Sep 3, 2021

What happens if a debt collector won't negotiate?

Speak to the Original Creditor

Inform the original creditor that you want to find a way to settle the debt, and ask if they're willing to negotiate. The creditor may choose to accept your initial offer, negotiate a new amount, or refuse outright and refer you back to the collection agency.Apr 25, 2016

How long does it take to settle a debt?

After about 90 – 180 days, your creditors write off what you owe as bad debt. This is when the debt settlement company approaches your creditors with evidence that you aren't able to pay, and will start negotiations. During this time, put aside as much money as you can toward your lump sum payment.Aug 27, 2021

How long does it take to improve credit score after debt settlement?

between 6 and 24 months

However, a debt settlement does not mean that your life needs to stop. You can begin rebuilding your credit score little by little. Your credit score will usually take between 6 and 24 months to improve. It depends on how poor your credit score is after debt settlement.Apr 6, 2021

What happens if you stop paying unsecured debt?

A well known example is credit card debt. While you owe the debt, if you stop paying, your creditor will simply continue to nag you for payment while threatening to take legal action to procure payment.

What happens if you are secured?

If your debt is secured, your creditor has different remedies available to them as compared to unsecured debt. Secured debt is debt which is secured by property. Generally, this means that in exchange for the credit that was extended to you, you pledged property as collateral. A lender is more inclined to loan larger amounts if the debt is secured, because they know that if you stop making payments, they can take steps to seize the property. This seizure may come in the way of foreclosure on real estate, repossession of a vehicle, or other seizure of property—depending upon what was pledged.

Why do you need a lawyer for debt settlement?

Most people have painstakingly acquired their assets over a long time, and losing them breaks their hearts. This is why you need a lawyer to help you navigate the delicate matter of debt settlement. Even when you are threatened with foreclosure by your lender, your lawyer will step in to ensure that you retain your house. Similarly, when the creditors seek to repossess assets such as your car, art collection, or your prized electronic gadgets, your lawyer will use legal means to protect you and ensure that you retain your property. A lawyer can also prevent assets owned by your family members from being liquidated to settle your debt .

What is debt settlement lawyer?

A debt settlement attorney assesses your financial standing, debts owed, your income, and your assets. The attorney is then able to correctly determine what you can pay. Armed with this information, the debt settlement lawyer can engage your creditors and negotiate for more favorable repayment terms.

Can creditors look for you?

With mounting debts, it is not long before creditors come looking for you. Some people may even hide to avoid the creditors and delay the debt collection process. When this happens, a creditor may forward your file to a collection agency that is tasked with looking for you and recovering the debt.

What to do if you feel unfairly targeted?

If you feel that you are being unfairly targeted, or that the creditors have breached rules regarding your debt, you may hire a lawyer to sue on your behalf to avoid paying additional fees and penalties.