Mar 31, 2022 · Learn what you can do if you lose your job and find that you may not be able to pay your creditors. If you suddenly find yourself unemployed, it can be a struggle to keep up with your bills. Fortunately, you might be able to reduce or suspend (delay) your obligation to pay rent, a mortgage, student loans, or other debts—at least temporarily.
Sep 13, 2021 · A debt settlement lawyer may be able to help you get a better overall settlement deal. Perhaps most importantly, they can help you avoid the stress of communicating with aggressive debt collectors. This article will explain debt settlement and the benefits of hiring a debt settlement attorney. Written by the Upsolve Team .
Sep 09, 2021 · Among other things, you must show that your lawyer made a significant mistake in your case and that you suffered a monetary loss because of it. In other words, you must show that you would have won your case—or received more in compensation—had it not been for your lawyer’s mistake.
Nov 28, 2012 · Contact. Website. Answered on Nov 29th, 2012 at 11:59 AM. All Attorney Fee Agreements in PA must be in writing to be legal. Also, a lawyer is not permitted to keep a retainer for no work performed. You should call your local bar association for a referral for handling your fee dispute. Report Abuse.
When hiring an attorney to settle your debts, look for a licensed attorney who has experience negotiating with different types of creditors. A good debt settlement attorney should know which debt relief option is best for you and how to make it work.
Also, most bankruptcy attorneys offer free consultations that can help you learn about debt relief. In addition to negotiating any settlement, a good debt settlement attorney should be able to offer advice about other debt relief services, including debt consolidation, debt management, or bankruptcy.
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Debt settlement attorneys’ fees vary depending on your location and the amount of your debt. They are required to inform you of their fees in advance. Most debt settlement attorneys work on a contingency fee basis. In this fee arrangement, you pay nothing in advance. You’ll only pay a fee if the lawyer helps you reach a settlement. The fee will be a percentage of the settlement amount. Make sure that you understand exactly what your debt settlement attorney will try to accomplish and how much it will cost you.
These additional options include a debt management plan that allows you to pay a debt over time. This is a good option if you don’t have the funds available for debt settlement. Consulting with an attorney can help you learn a lot about your options. A debt settlement lawyer may also know bankruptcy law and other debt-relief options like debt consolidation.
You may be able to settle for as low as 10% of the original debt amount or up to 50% or more. You can settle a debt with a monthly payment plan or a lump-sum payment. This eliminates the debt and closes the account forever .
Also, not all types of debt can be settled. Debt settlement is rarely an option for secured debts since the creditor can typically recover more of the original debt by selling the collateral. Debt settlement is more commonly used to address unsecured debts like medical bills, credit cards, personal loans, and payday loans. Because these lenders have no collateral as protection, unsecured creditors are more willing to settle a debt since it gives them some chance of recovery.
When a client fires a lawyer and asks for the file, the lawyer must promptly return it. In some states, such as California, the lawyer must return the file even if attorneys’ fees haven’t been paid in full. Lawyer incompetence. Lawyers must have the knowledge and experience to competently handle any case that they take on.
Lawyers are given a lot of responsibility and often deal with serious matters, from criminal charges to child custody to tax and other financial matters. When you hire a lawyer, you are trusting him or her to represent your interests in the best manner possible. To protect the public—and the integrity of the legal profession—each state has its own code of ethics that lawyers must follow. These are usually called the “rules of professional conduct.”
State Disciplinary Boards. Each state has a disciplinary board that enforces state ethics rules for lawyers. The board is usually an arm of the state’s supreme court and has authority to interpret ethics rules, investigate potential violations, conduct evidentiary hearings, and administer attorney discipline.
In most states, you can file your complaint by mailing in a state-issued complaint form or a letter with the lawyer's name and contact information, your contact information, a description of the problem, and copies of relevant documents. In some states, you may be able to lodge your complaint over the phone or online.
Lawyer incompetence. Lawyers must have the knowledge and experience to competently handle any case that they take on. They must also be sufficiently prepared to handle matters that come up in your case, from settlement negotiations to trial. Conflicts of interest.
The American Bar Association publishes the Model Rules of Professional Conduct, which lists standard ethical violations and best practices for lawyers. Some states have adopted the model rules as their own ethical rules, while others use it as a guide and modify or add rules.
In most cases, a board of lawyers and non-lawyers will review the complaint. If there’s a potential ethical violation, the board will give the lawyer a copy of the complaint and an opportunity to respond.
Since you had no written contract the attorney will say you paid him a true retainer, which is a fee paid strictly to keep him available in case something happens, and is not an advance against future work. If it was the latter, at least part of it would be refundable. You could bring a small claims action which would most probably be referred to arbitration. You could try to negotiate and say, that you agree to pay him for the time spent in advising you and refund the balance or you will be forced to take appropriate action for return of your fee. You could also check the California Bar website for information for the public about attorney client fee disputes.
The lawyer may be entitled to keep some money for the consultation, but he should refund any money not "earned" by time spent. If he will not talk to you, and if he will not itemize his time, then the next step is to file a grievance. Report Abuse. Report Abuse.
If he refuses to give your money back, file a complaint with the State Bar.
to have proof of delivery, that if he does not return it in 5 days, you are reporting him to the State Bar. If he does not respond, report him. The State Bar has a victim fund that you can apply for relief. They actually pay out claims.
However, the non-refundable retainer must be reasonable. There was some time spent with the attorney giving advice obviously. A reasonable non refundable retainer can probably exceed the attorney's normal hourly rate for whatever time the attorney spent actually spent giving advice, etc.
All Attorney Fee Agreements in PA must be in writing to be legal. Also, a lawyer is not permitted to keep a retainer for no work performed. You should call your local bar association for a referral for handling your fee dispute.
I believe you would be entitled to your money back if he did not explain to you it was not refundable (and if it wasn't, and he had half a brain, he would have on the receipt he gave you that it was not refundable.)
Some tips for writing the debt letter: 1 It should be on one page 2 It should give financial information such as income, rent, and food 3 It should be courteous and polite; after all it is requesting help 4 It should give some personal details such as medical conditions 5 For a settlement letter, a clear offer should be given 6 If the debts are old, creditors are usually happy to accept any offer of payment 7 The letter should be addressed to the person in charge of the consumer’s account 8 A written agreement should be requested
There are several different ways consumers can deal with debt they are having difficulty paying. They can offer a one-time payment to write off the debt, they can defer making payments for a specific time period and they can ask that the debt be forgiven . ​.
It may be embarrassing to write a letter, because the consumer has to tell about their sad situation and request help. However, the hardship is not the only important thing about request. Most creditors are happy to get any payment on unsecured debt and will view the request favorably. ​.
All types of debt letters should include a request for a response in writing. Here are sample debt letters for a settlement. It is important to keep copies of all documents and letters that are exchanged in this type of transaction.
If the debts are old, creditors are usually happy to accept any offer of payment
It is not recommended to discuss debt payment over the phone because putting the proposal in writing provides the debtor proof that they are trying to resolve the situation. A credi tor could agree to certain conditions over the phone and later want to change them. Several Ways to Deal with Debt. ​.
When people owe on a credit card account that has gone into collections, it is not uncommon to find that the collection agency will settle for a lesser amount.
If you lost money because of the way your lawyer handled your case, consider suing for malpractice. Know, however, that it is not an easy task. You must prove two things:
If you're not satisfied with your lawyer's strategy decisions or with the arguments the lawyer has been making on your behalf, you may even want to go to the law library and do some reading to educate yourself about your legal problem.
Every state has an agency responsible for licensing and disciplining lawyers. In most states, it's the bar association; in others, the state supreme court. The agency is most likely to take action if your lawyer has failed to pay you money that you won in a settlement or lawsuit, made some egregious error such as failing to show up in court, didn't do legal work you paid for, committed a crime, or has a drug or alcohol abuse problem.
If your lawyer does not respond, or subsequent meetings or conversations are not fruitful, consider suggesting mediation to work out your communication problems if you still want this lawyer to represent you. A bad deskside manner doesn't mean that the lawyer isn't an excellent lawyer, and it can be difficult to find a new one in the middle of a case.
A common defense raised by attorneys sued for malpractice is that the client waited too long to sue. And because this area of the law can be surprisingly complicated and confusing, there's often plenty of room for argument. Legal malpractice cases are expensive to pursue, so do some investigating before you dive in.
If the lawyer is unresponsive and the matter involves a lawsuit, go to the courthouse and look at your case file, which contains all the papers that have actually been filed with the court. If you've hired a new lawyer, ask her for help in getting your file. Also, ask your state bar association for assistance.
If you can't find out what has (and has not) been done, you need to get hold of your file. You can read it in your lawyer's office or ask your lawyer to send you copies of everything -- all correspondence and everything filed with the court or recorded with a government agency.
Credit counseling agencies can provide money management education, budget counseling, debt counseling, housing counseling, and referrals to other agencies that can help. Credit counseling agencies may also be able to contact your creditors and create a debt management plan.
If you don't pay a secured debt back, the creditor might be able to come and get the property without first suing you in court. If the item is something you can't live without, make the payments. Otherwise, don't be too concerned about missing a payment or two.
You might be able to get some relief by negotiating with your creditors directly. Different types of debt have different options. You could be able to reduce or temporarily suspend mortgage payments with a forbearance or loan modification. You might be able to lower your credit card payments or interest rate by reaching an agreement with your credit card lender.
The type of debt you owe will determine what collection actions your creditors are allowed to take and how much time it will take.
If your financial difficulties are temporary, you might be able to get back on your feet with more time to catch up on payments or a temporary reduction in payments. But if your situation is permanent or long term, you'll need a more permanent solution to reduce or eliminate your debts entirely. Debt settlement or filing for bankruptcy might be appropriate for your situation.
A low-priority debt is one that doesn't have immediate or devastating effects if you don't pay. While paying these debts is a desirable goal, they're usually not a top priority. (Remember, though, that failing to pay a debt causes it to stay on your credit report for seven years.)
Failing to pay child support can land you in jail. What's more, a child support debt never goes away—it doesn't expire, and you can't wipe it out in bankruptcy. Utility bills.
If you don’t respond to the suit, the collector will most likely ask the court to enter a default judgment, which means you automatically lose the case. The court might then simply award the collector the amount it requested, or it might scrutinize the documentation to make sure the amount is legitimate, or the court might require the collector to present evidence before awarding any money. The collector will probably be able to get attorneys’ fees, court costs, and interest in addition to the amount you owe. Once the collector gets a money judgment against you, you might face wage garnishment, a bank account levy, or a lien on your property.
Once the collector gets a money judgment against you, you might face wage garnishment, a bank account levy, or a lien on your property.
“ Discovery ” refers to the formal procedures that parties in a lawsuit use to get information and documents from each other to prepare for trial or settle the case. If you don’t raise any defenses or counterclaims, the collector probably won’t engage in discovery. But if you have a good defense or file a counterclaim, you and the collector might want to participate in discovery.
Generally, you’ll get around 20 to 30 days to file a written answer to the lawsuit with the court. You’ll have to respond to the allegations in the complaint and raise any defenses you have, like that the statute of limitations (the law that sets a time limit on the right to file a lawsuit) has expired, or counterclaims against the collector, such as violations of the Fair Debt Collection Practices Act.
A debt collection lawsuit begins when the collection agency files a “complaint” (sometimes called a “petition”) in court. The complaint will explain why the collector is suing you and what it wants—usually, repayment of money you owe, plus interest, fees, and costs.
To challenge a summary judgment motion, you’ll have to file paperwork opposing the motion. If you don’t, you’ll probably lose. Because the outcome of the lawsuit is at stake, you should seriously consider consulting with a lawyer, if you haven't already, if the collector files this kind of motion.
If the judge grants the motion, the court will enter a judgment against you without a trial.
The second purpose is to show the plaintiff that you are playing hardball and won’t just rollover and pay. Because lawsuits can be scary, debt collectors hope that you’ll just pay before it even gets to court, won’t show up and get a default judgement, or won’t know what to do and will lose because you don’t know what to do. Sending the request for production of documentation shows that none of those apply. In many cases, the debt collection agency will drop the lawsuit at this point because they know it may be a losing battle. But if they don’t drop the suit, make sure to take the right steps to stay on track for a win on your court date.
For a debt to be legally collectable, the debt collector must produce documentation showing that you signed an agreement to pay, that the debt was legally sold to the collector, and that the amount and debt source in question are both legal and valid, and not past a statute of limitations for collection.
This letter serves two purposes. First, it is requesting that the debt collector provide documentation that proves they have a claim to collect the debt. If they can’t provide this documentation, you win. And, seeing as most credit card companies don’t keep copies of all account signup documentation and virtually never provide that to the debt collector, this alone could win the case for you if the plaintiff is unable to meet the request.
Lawsuits happen every day, and many people come through relatively unscathed. If you freak out and hand over a big check or, even worse, your bank account information, the debt collectors have already won. Instead of panicking, create a plan to win in court.
Being Informed is the Best Defense. The best defense you have in court is being well armed with a knowledge of your rights. You do not have to pay a cent to the debt collectors unless they can provide documentation proving you actually owe the money and owe it to them.
When you get to court, you have to say and do the right things to win. If you open up with a big sob story and hope you’ll win out of sympathy, you are gravely mistaken. The worst thing you can do is admit the debt was yours. Your case hinges on the debt collector being unable to prove you actually owe the money.
Send the plaintiff’s lawyer, and send a copy to the judge as well, a Request for Production of Documents via certified mail with return receipt. You can find free templates to use online, such as this one for Massachusetts lawsuits.
If you're not successful in your efforts to work out realistic solutions with your creditors—or if you feel you can't handle the negotiations yourself—consider getting help from a reputable and accredited nonprofit credit counseling agency. (The National Foundation for Credit Counseling website is a good place to start looking for one.) Credit counseling agencies can provide money management education, budget counseling, debt counseling, housing counseling, and referrals to other agencies that can help. Credit counseling agencies may also be able to contact your creditors and create a debt management plan (see below).
Start by listing all of your outstanding debt. Then make a budget that includes all of your income and expenses. Explore ways to reduce spending and expenses—and, if possible, increase your income—then revise your budget accordingly. Next, using your budget as a guide, come up with a realistic dollar amount that you can devote to paying your debts each month. At this point, it might also be helpful to prioritize your debts. That is, determine which are the most important to pay. (Read Money Management 101 to learn about improving your financial situation.)
Chapter 13 Bankruptcy Overview. With a Chapter 13 bankruptcy, you file a plan with the bankruptcy court that details how you will pay back your creditors. You have to repay some debts fully, but other debts may be partially repaid or not paid back at all, depending on what you can afford.
Bankruptcy is a process that's designed to help people either eliminate their debts or repay them under the protection of the bankruptcy court. Most bankruptcies fall under the categories of "liquidation" (Chapter 7) or "reorganization" (Chapter 13).
The agency pays your creditors from the trust account, and pays itself the fee for its service. A plan is likely to last from three to five years, depending on your debts and your income. Things to watch out for with debt management plans.
Credit counseling agencies can provide money management education, budget counseling, debt counseling, housing counseling, and referrals to other agencies that can help . Credit counseling agencies may also be able to contact your creditors and create a debt management plan (see below).
Companies offering debt management plans often bill themselves as credit counselors. Some are legitimate nonprofit credit counseling agencies, many are not. Among other things, some debt relief service companies offering these types of plans: fail to pay creditors on time or at all.