what kind of lawyer can i talk to about my debt

Do I need a lawyer to settle debt?

Jan 25, 2017 · Depending on the amount and nature of your debt, you may wish to consult with a bankruptcy lawyer. Bankruptcy attorneys may be particularly helpful in many contexts. You may be able to find a link to lawyer referral services on the website of the state or local bar organization in your area.

How do I find a debt collection attorney in my area?

Debt settlement attorneys usually have negotiation skills developed over three years of law school and many years of practical experience, as well as extensive knowledge about debt collections. A lawyer can also represent you if a creditor files a lawsuit. Debt settlement companies can't do these things.

What does a debt lawyer do?

Sep 03, 2020 · Using a lawyer can help tremendously with debt settlement. If you would like to speak with a debt settlement lawyer today about your options, we are here to help. Call us at 704.749.7747 or click HERE to request to speak with a lawyer today. We know you have choices. We hope you choose Layton Law. September 3, 2020 / by Chris

What should I do if I talk to a debt collector?

When an Attorney Can Help If outstanding debt obligations, in general, are causing a debtor to lose control of his or her financial standing, he or she should contact an attorney about debt negotiation or reduction.

How do you negotiate down 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.

What percentage of a debt is typically accepted in a settlement?

30% to 80%The percentage of a debt typically accepted in a settlement is 30% to 80%. This percentage fluctuates due to several factors, including the debt holder's financial situation and cash on hand, the age of the debt, and the creditor in question.Apr 15, 2020

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

What is the lowest a creditor will settle for?

When you're negotiating with a creditor, try to settle your debt for 50% or less, which is a realistic goal based on creditors' history with debt settlement. If you owe $3,000, shoot for a settlement of up to $1,500.Jun 11, 2021

Can A Debt Lawyer Help My Court Case?

A debt lawyer is extremely valuable if your debt situation causes you to go to court. Debt collectors can take consumers to court to recover money...

What Can A Debt Lawyer Do For Me If I File For Bankruptcy?

A debt lawyer is almost mandatory when filing for bankruptcy.A debt lawyer who specializes in bankruptcy can explain the differences between Chapte...

How Much Does It Cost to Hire A Debt Lawyer?

When you are swamped with debt, hiring a lawyer can add to the pile of expenses you already have. The right lawyer, however, can steer you though t...

When You Should Hire A Lawyer

The first step to solving problems with debt collection is to see if you can deal with the situation yourself, or contact a nonprofit credit counse...

Is Hiring An Attorney Worth It?

Lawyers cost money, so it is wise to consider whether retaining one in a debt case is worth the cost. Face it, you already have financial problems,...

What to Expect from A Lawyer

Lawyers can be expensive, so if you decide to hire one, you should talk fees early on. Lawyers will either charge you an hourly rate or a contingen...

How Debt Settlement Companies Work

Debt settlement companies often claim that they’ll be able to talk your creditors into settling your unsecured debts for pennies on the dollar. If...

Why Hiring A Lawyer Might Be A Good Idea

If you think you need help settling your debts or are unsure about whether negotiating settlements is a good idea, a skilled attorney can provide y...

You Can Settle Your Debts on Your Own

You can arrange a debt settlement yourself. If you are certain that you want to settle your debts rather than filing bankruptcy or some other optio...

When will debt collectors have to give notice of eviction moratorium?

All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium.

Can you leave originals with a debt collector?

Never leave your originals with anyone. It will be helpful for your attorney to review copies of letters you have received from the debt collector, as well as any copies of records you have kept of phone calls, letters you wrote to the debt collector, or other communications. Read full answer.

How does a debt settlement company work?

Debt settlement companies often claim that they'll be able to talk your creditors into settling your unsecured debts for pennies on the dollar. If you're current on your payments, they'll tell you the creditors won't settle unless you stop making payments.

What does a debt settlement lawyer do?

A lawyer can also represent you if a creditor files a lawsuit. Debt settlement companies can't do these things.

What is a good attorney?

A good attorney will go over all of your options. The attorney can help you figure out if you really should try to settle your debts or whether you should do something else, like file for bankruptcy, for example. A debt settlement company will probably just try to convince you to hire it to settle the debts.

Can you settle your debts on your own?

You Can Settle Your Debts On Your Own. You can arrange a debt settlement yourself. If you're sure you want to settle your debts rather than filing bankruptcy or some other option—and your creditors aren't already suing you or causing you problems—you might not need to hire an attorney.

Do creditors have to accept lesser amounts?

They also probably won't tell you that your creditors don't have to accept a lesser amount than they're owed to settle the debt or that many creditors won't agree to a settlement, especially if you're working with a debt settlement company.

Do attorneys have to be licensed to settle debt?

Attorneys must be licensed and are supposed to uphold strict ethical standards. Unfortunately, not all do. Some debt settlement companies employ lawyers to act essentially as fronts (or, in some cases, attorneys might team up with a debt settlement company) to provide the company an appearance of legitimacy.

Is a debt of $600 taxable?

The IRS generally considers canceled debt of $600 or more as taxable, and settling debts for less than what's owed can increase your tax liability depending on your tax bracket and the canceled amount. Consult a tax professional for more information. Talk to a Lawyer.

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.

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.

Why do people get into debt?

Sometimes people get into debt due to unpaid goods or services. If you had borrowed money to help you supply goods or services, you might get into debt if your clients fail to pay. If you exhaust all possible avenues to recover your money, you can hire a debt recovery lawyer to go after the clients.

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 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.

What happens when you get a judgment against you?

This means that if you sell the real property, the judgment will need to be paid as part of the sale.

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.

When an Attorney Can Help

If outstanding debt obligations, in general, are causing a debtor to lose control of his or her financial standing, he or she should contact an attorney about debt negotiation or reduction.

Getting Legal Help with Debt Negotiation

In reality, debt settlement may not necessarily provide the results a given debtor desires. Having legal counsel to inform a given debtor about the reality of his or her debt situation, versus their initial expectations, is important.

What happens if the statute of limitations is passed?

If the statute of limitations has passed, then your defense to the lawsuit could stop the creditor or debt collector from obtaining a judgment. You may want to find an attorney in your state to ask about the statute of limitations on your debt. Low income consumers may qualify for free legal help.

How to contact a debt collector?

Any debt collector who contacts you to collect a debt must give you certain information when it first contacts you, or in writing within 5 days after contacting you, including: 1 The name of the creditor 2 The amount owed 3 That you can dispute the debt or request the name and address of the original creditor, if different from the current creditor.

What is CFPB sample letter?

The CFPB has prepared sample letters that you can use to respond to a debt collector who is trying to collect a debt. The letters include tips on how to use them. The sample letters may help you to get information, set limits or stop any further communication, or exercise some of your rights.

How long does it take for a debt collector to contact you?

Any debt collector who contacts you to collect a debt must give you certain information when it first contacts you, or in writing within 5 days after contacting you, including: The name of the creditor. The amount owed. That you can dispute the debt or request the name and address of the original creditor, if different from the current creditor.

How long does a debt have to be paid before it can be sued?

The statute of limitations is the period when you can be sued. Most statutes of limitations fall in the three to six years range, although in some jurisdictions they may extend for longer.

What to do if you agree to a settlement?

If you agree to a repayment or settlement plan, record the plan and the debt collector’s promises. Those promises may include stopping collection efforts and ending or forgiving the debt once you have completed these payments. Get it in writing before you make a payment.

What to do if you don't recognize the creditor?

If you don’t recognize the name of the creditor, you can ask what the original debt was for (credit card, mortgage foreclosure deficiency, etc.) and request the name of the original creditor. After you receive the debt collector’s response, compare it to your own records.

How do attorneys charge?

How an attorney charges for services can have a big effect on the cost. Most attorneys will charge for their services in one of three ways: 1 A flat fee, no matter how much time it takes or how the suit is resolved. 2 By the hour, often with a cap to ensure that you do not pay the attorney more than the lawsuit is worth 3 By the result. Usually this fee is based on how much the attorney saves you in the long run. For instance, an attorney may agree to a fee of one third of the difference between the amount of the debt and the settlement amount. If you are sued for $10,000, and settle for $4,000, the attorney will get one third of the difference, or $2,000.

How much is a retainer?

The retainer can range from a nominal amount to thousands of dollars , and is usually based on how much the creditor seeks in the lawsuit and the amount of time the lawyer estimates the case will last.

What to do if you hire a lawyer to defend a collection suit?

If you decide to hire the attorney to defend the collection suit, be sure that you sign a retainer agreement. The retainer agreement is a contract that governs your employment relationship with the attorney and should spell out at a minimum the details of the fee arrangement you negotiated.

How does an attorney charge for services?

Most attorneys will charge for their services in one of three ways: A flat fee, no matter how much time it takes or how the suit is resolved. By the hour, often with a cap to ensure that you do not pay the attorney more than the lawsuit is worth.

What to expect when hiring an attorney?

From the attorney, you should expect competence, ethical behavior, and adequate communication as your case progresses.

What should an attorney explain to a creditor?

The attorney should explain any additional costs, like court fees and expenses you'll be responsible for, like copy costs, postage, and other charges . If the attorney thinks settlement is possible, the attorney will ask you if you have a maximum amount you are willing to pay the creditor.

What happens if you don't respond to a collection lawsuit?

The summons attached to the complaint will tell you the deadline for your response. If you don't respond, the court could enter a judgment against you. (Learn more about receiving and responding to a collection lawsuit .)

What is an individual lawyer?

Individual lawyers (also called attorneys) are experts in different areas of the law. Some attorneys specialize in a certain field of law, such as business, civil, criminal, or juvenile law. You will need to determine which type of attorney is right for your legal situation.

How long does bankruptcy stay on your credit report?

Keep in mind, Chapter 7 bankruptcy information stays on your credit report for 10 years. This can make it hard to get credit, buy a home, receive life insurance, or get a job. Learn more about bankruptcy, and other options for dealing with debt .

How to negotiate with a creditor?

If you want to negotiate directly with the creditor, ask the collection agency for the phone number of the collections department of the original creditor. Then call the creditor and ask if you can negotiate on the debt directly with the creditor. Ideally, the creditor will immediately negotiate with you, and you'll work something out.

What happens if a collection agency buys a debt?

If the collection agency bought the debt from the creditor (rather than the creditor just assigning the debt to the agency for collection), the agency owns the debt. If you negotiate with and make payments to the creditor, the collector may refuse to credit you ...

Can a creditor take a debt back?

Unfortunately, that's rare. It's more likely that the creditor will only take the debt back if you negotiate with the collection agency, establish a repayment plan, and make two or three payments under the plan. If this happens, the creditor might eventually ...

Can a creditor refuse to pay you?

If you negotiate with and make payments to the creditor, the collector may refuse to credit you for those payments. You can negotiate a payoff of the debt in one lump sum, or perhaps you can negotiate a better payment plan. These are the same options available if you negotiated directly with the collector, although the creditor may be more flexible ...

Do not sell personal information?

Do Not Sell My Personal Information. If you're ready to negotiate on a debt, you'll probably be better off talking to the creditor, not a collection agency. This is because the creditor has more discretion and flexibility in negotiating with you, and might see you as a former and possibly future customer.

Can an attorney text you?

Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.