what kind of lawyer should i get for a debt that i own

Do I need a lawyer to collect a debt?

An attorney can defend you if you get sued. If a creditor decides to sue you to collect a debt, an attorney can defend you in the suit. Likewise, if a creditor violates the law in its efforts to collect from you, an attorney can provide specific advice and tell you how to proceed in your particular situation.

How do I choose the right lawyer for debt relief?

The right lawyer, however, can steer you though the legal system, and put you on the right financial track. Many law firms provide free debt consultations. It is best to set up an in-person visit. When you decide on a lawyer, get a list of all charges and fees in writing so you know what to expect to pay.

What does a debt attorney do in bankruptcy?

With a bankruptcy, a debt attorney will help you prepare all the required paperwork you need in your case. They can answer your questions and give you a basic rundown on rules and procedures in the courtroom. How Much Does It Cost to Hire a Debt Lawyer?

Do I need an attorney to handle a creditor's lawsuit?

Just as consumers have legal protections, so do creditors who are owed money, which means that in some cases, your creditors may have the right to initiate a lawsuit against you. At that point, bringing an attorney on board often makes sense, especially if there's a chance a serious judgement will be issued against you. 4.

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

File an Answer — This is the best option in nearly all cases. Filing an Answer prevents the court from filing a default judgment against you. Filing an Answer protects you from default judgment, or losing automatically. It also puts you in a position of power, giving you leverage to settle your case.

Can I settle debt on my own?

You may be able to get faster results with DIY debt settlement. While completing a plan through a company can take two and a half years or more, you may be able to settle your debts on your own within six months of going delinquent, according to debt settlement coach Michael Bovee.

How much should I offer to settle an old debt?

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.

What percentage should I offer to settle 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 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.

How do you get out of collections without paying?

There are 3 ways you can remove collections from your credit report without paying. 1) sending a Goodwill letter asking for forgiveness 2) disputing the collections yourself 3) working with a credit repair company like Credit Glory that can dispute it for you.

What percentage do debt collectors take?

between 25% to 50%The creditor pays the collector a percentage, typically between 25% to 50% of the amount collected. Debt collection agencies collect various delinquent debts—credit cards, medical, automobile loans, personal loans, business, student loans, and even unpaid utility and cell phone bills.

Is it worth it to settle debt?

The short answer: Yes, debt settlement is worth it if all of your debt is with a single creditor, and you're able to offer a lump sum of money to settle your debt. If you're carrying a high credit card balance or a lot of debt, a settlement offer may be the right option for you.

Will a debt collector settle for 20%?

Some want 75%–80% of what you owe. Others will take 50%, while others might settle for one-third or less. Proposing a lump-sum settlement is generally the best option—and the one most collectors will readily agree to—if you can afford it.

What are the pros and cons of debt settlement?

In any case, it's important to weigh the pros and cons of debt settlement so you can make the right choice for your situation....Debt settlement pros and cons.ProsConsPay off debt soonerCould come with feesStop calls from collection agenciesCould hurt your credit2 more rows•Jan 26, 2022

How do you negotiate a debt settlement at a law firm?

Five Steps to Debt NegotiationStep 1: Stopping Creditor Phone Calls. ... Step 2: Validating the Debt. ... Step 3: Negotiating the Debt. ... Step 4: Settling the Debt. ... Step 5: If Sued, Utilize Defenses – Why You Want An Attorney.

How do I pay off old debt in collections?

If you have a debt in collections, follow these steps to pay it off.Confirm that the debt is yours. ... Check your state's statute of limitations. ... Know your debt collection rights. ... Figure out how much you can afford to pay. ... Ask to have your account deleted. ... Set up a payment plan. ... Make your payment. ... Document everything.

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...

When To Hire A Debt Lawyer

A debt lawyer is similar to a bankruptcy attorney in that they help you manage large amounts of debt. But unlike a bankruptcy attorney, a debt lawyer will focus on helping you pay off your debts for less than what you owe. They can also help you make arrangements with your lenders and creditors to make your monthly debt payments more manageable.

What To Expect From A Debt Settlement Attorney

Hiring a debt settlement lawyer usually comes at a cost. So, before shelling out money that could otherwise go to paying off a debt or hiring a bankruptcy attorney, you’ll want to make sure you’re getting your money’s worth.

How To Hire Debt Settlement Lawyers

To hire a debt settlement attorney, you’ll need to research your options then figure out which one is best for you to hire. There are several good places to look for a debt collection lawyer.

What Debt Settlement Lawyers Might Hide From You

Despite how the media might portray them, lawyers are bound by a strict code of ethics and rules of professional responsibility. The vast majority of lawyers follow these rules, but there are a few bad apples.

Avoiding Debt Collection: Do It Yourself

An ounce of prevention is worth a pound of cure, as the saying goes. And that saying definitely applies to debt relief. Stopping a debt collection action or winning your debt lawsuit is great. But avoiding both is even better.

What Should I Expect When Working with a Debt Collection Attorney?

If you are a creditor, an attorney can help you put a plan in place to gain back the money you loaned out. Should you go to court, the timeframe and the amount you get will depend on the judge’s ruling. If you’re able to settle outside of court, you and the debtor will be able to negotiate terms.

What does a debt collection attorney do?

A debt collection attorney can represent you if you’re a creditor or a debtor. A lawyer can help come up with strategies either to get back money that you’ve loaned out or to protect yourself from overeager creditors. Your attorney can handle paperwork for you or represent you in court.

How Much Does a Debt Collection Attorney Cost?

Attorneys use different methods of billing, so there’s no straight answer to this. Many debt collection attorneys charge an hourly rate. Other charge based on a contingency, meaning you will not have to pay anything up front but your lawyer will take a percentage if you win your case. If you don’t win, your lawyer won’t receive any payment. If your lawyer decides to charge in this way, you’re likely on the creditor side because you have more to gain than if you were on the debtor side. Discuss how your lawyer bills up front, so that you can both agree on a fee you’re comfortable with.

What to do if you are not paying your debt?

If you need repayment for a debt and the debtor isn’t paying up, a debt collection attorney can help figure out your best course of action to get your money back. You may also want to consider a creditors rights attorney, who works solely for creditors to help them regain their money.

Why do lawyers charge on the creditor side?

If your lawyer decides to charge in this way, you’re likely on the creditor side because you have more to gain than if you were on the debtor side. Discuss how your lawyer bills up front, so that you can both agree on a fee you’re comfortable with.

What is debt settlement?

An inability to pay back loans at the present time. Threat of lawsuit from a creditor. Being treated unfairly by collectors. You may also want to consider a debt settlement attorney who can help reduce or eliminate loans in order to avoid debt collectors.

Do creditors hate hearing from collectors?

What you'll learn: Debtors dread hearing from collectors looking for money, and creditors hate when those in debt dodge their phone calls. If you’re in either situation, you may help from a legal professional.

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Finding a Lawyer to Help With Your Debt Problems

If you want to hire an attorney to represent you in a creditor lawsuit, here's where to start.

What is debt settlement lawyer?

Debt settlement lawyers can command a small fortune for their services, whether they work on contingency (meaning they take a cut of the debt savings they negotiate for you) or charge a specific hourly or per-case rate.

What happens if you owe $20,000?

2. Your wages are at risk of being garnished. In some cases, your creditors can come after your earnings if your debt goes unpaid for too long. For example, if you owe the IRS back taxes, ...

Can creditors sue you for a owed money?

Just as consumers have legal protections, so do creditors who are owed money, which means that in some cases, your creditors may have the right to initiate a lawsuit against you. At that point, bringing an attorney on board often makes sense, especially if there's a chance a serious judgement will be issued against you.

Can creditors come after you?

In some cases, your creditors can come after your earnings if your debt goes unpaid for too long. For example, if you owe the IRS back taxes, or if you're delinquent on your loans, you could be at risk of having your wages garnished, compounding your financial troubles. If that's the situation you're facing, then it might pay to hire an attorney to step in.

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.

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.

Why do you need to negotiate your own settlement?

It often makes sense to negotiate your own settlement so you can save money and maintain control over the process. Also, your creditors could be reluctant to settle if you hire someone to represent you in the process. After all, if you can afford to hire a debt settlement company or an attorney, why can't you pay the full debt?

Why are debt settlement companies not in business?

Why not? Because debt settlement companies are for-profit companies. They aren't in business because they care about your situation or want to help you out. They want to make a buck, and some are outright scammers. In almost every case, you'll be much better off using the money you would have paid to the debt settlement company to pay down your debt or using it to hire a reputable lawyer to help you.

How to deal with creditors?

You should schedule a meeting to speak directly to the attorney. Find out if the attorney will deal directly with the creditors or if a staff member will be doing the negotiating. If the company says they're "attorney backed" or won't let you meet with or talk to an attorney, that's a big red flag that the attorney has little to do with the operation.

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.

Who can refer you to a consumer lawyer?

An attorney you know or have worked with before may be able to refer you to an attorney who has experience in consumer law.

Can low income people get legal aid?

Low income consumers may qualify for legal aid. Find an office in your state here.

Do attorneys charge a fee?

Some attorneys may also offer free services, or charge a reduced fee. There may also be legal aid offices or legal clinics in your area that will offer their services for free if you meet certain criteria.

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.

What can a debt settlement attorney do?

Even if you don't end up hiring a lawyer, an experienced debt settlement attorney can help you evaluate the creditor's case and your personal circumstances to determine the best course for you.

What to do when a creditor sues you for debt?

When a creditor sues you to collect debt you haven't paid, you have three choices to deal with the lawsuit: allow the creditor to obtain a judgment against you (called a "default judgment") defend the lawsuit yourself, or. hire an attorney to represent you in the lawsuit. Which option is best for you will depend on a number of factors.

Are You Judgment Proof?

Being judgment proof really means that you are collection proof. That is, if the creditor gets a judgment against you, can it collect it through wage garnishment, taking your bank account funds, or the like? If not, you are judgment proof. (Learn more about what being judgment proof means .)

Would Bankruptcy Be a Better Option?

Defending numerous credit card suits can be expensive and time consuming, and the effect on your credit score of these judgments might be worse than that of a bankruptcy. You might find that discharging all your old debt with a Chapter 7 or a Chapter 13 bankruptcy could cost less than defending even one credit card suit. And bankruptcy can often help you get on a stronger financial footing sooner.

What happens if you don't have a defense in a lawsuit?

If you owe the amount that the creditor is seeking in its lawsuit, hiring a lawyer might be a waste of time and money. If you don't have a defense or counterclaim and the creditor can easily prove its case, then you'll lose. You'll then owe the judgment amount, have to pay your own attorney, and might have pay the creditor's attorneys' fees too. (In some types of cases, the losing party has to pay the other side's attorneys' fees).

What happens if you win a counterclaim?

If you win on your counterclaim, you might get a money judgment against the creditor. Your filing of the counterclaim might also induce the creditor to withdraw its lawsuit against you.

What is a defense in a lawsuit?

A defense is a reason why you aren't liable for the debt or a reason why the creditor shouldn't be allowed to collect the debt. Here are some common defenses to creditor suits: the statute of limitations (the time period in which the creditor must bring the lawsuit) has run.

When would you need to hire a debt collection attorney?

You might need to hire a debt collection attorney in the following situations:

What to do if client has no intention of paying?

If it's clear that your client has no intention of paying, going straight to a lawyer can save you time and possibly money.

How much does a collection agency charge?

Some collection agencies will charge 25% of your debt to work for you; some may even charge 50%. A 25% fee is probably less than what a lawyer will cost, whereas 50% is more. However, in some cases, a court judgment in your favor will require your debtor to cover your attorney fees, so your fees might not ultimately matter.

Do debt collection attorneys represent creditors?

On the flip side, some debt collection attorneys are more inclined to represent debtors than creditors. In these instances, the attorneys work to protect those who are being sued.

Can a lawyer help with debt collection?

However, these agencies cannot give legal advice or file lawsuits; only a lawyer can, and a debt collection attorney will know all the relevant laws and aptly advise you.

Can a collection agency compel a debtor to pay?

Collection agencies can't directly compel debtors to pay or file suits that inch you closer to this goal. Debt collection attorneys, on the other hand, can file demand letters on legal letterhead, which can compel debtor action even before a formal lawsuit.

Can a lawyer represent you in court?

Additionally, only attorneys can represent you in court and bring about a binding ruling from a judge. How much you actually want to go to court. If you're not invested in taking your case to court, then hiring a lawyer may not be worth it. In this case, choose a collection agency, or just leave the debt be.