Do you have creditors blowing up your phone for a debt you owe? Are you struggling to keep up with your current obligations while trying to manage old debt?
Trying to manage the debts you owe, in addition to trying to keep your household afloat, is a problem that many Americans face every day. In fact, over 340 million Americans are in debt and struggling to keep up with it.
Fortunately, you can contact a debt relief attorney to help negotiate and settle your debts on your behalf. So what is a debt relief attorney, and what are the benefits of having one on your side? Continue reading below to learn more about how they can help you and who you can contact for more information.
What Is a Debt Relief Attorney?
A debt relief attorney is a lawyer that helps you manage large amounts of debt. They work similarly to a bankruptcy attorney, but the main difference is your debt relief lawyer will negotiate on your behalf to settle your debt for less.
These attorneys can also make arrangements with your creditors and lenders to make the monthly debt more manageable for you. If you have a creditor suing you to recover debt, you should contact an attorney as soon as possible to provide you with the best course of action.
When To Hire an Attorney
As stated above, if a creditor is suing you for a particular debt, you could benefit from reaching out to an attorney to handle that on your behalf. Another instance where you may want to reach out to a reputable debt relief attorney is if a creditor is harassing you.
Per the Fair Debt Collections Practice Act, a creditor cannot harass you. This means they cannot repeatedly call you with the intention to threaten, harm, or annoy you or your family. If you notice a creditor is acting in violation of the Fair Debt Collections Practice Act, you may be entitled to compensation.
You Aren’t Sure How To Handle Debts
If you aren’t sure how to approach your debts, a reliable debt relief attorney can help you sort through them. They will help protect your credit score, prevent your vehicle from repossession, and save your house from foreclosure.
How Does a Debt Settlement Work?
A debt settlement is when you or your attorney negotiate with the creditor to accept a payment less than what you owe. Depending on how good you are at negotiating, you may be able to pay less than 50% of what you owe or more. You can pay off the debt either as a lump sum payment or with a monthly payment plan.
Once you finish paying off what is agreed upon, the debt is eliminated, and the account is closed and possibly removed from your credit. In order for the debt settlement process to work, you have to have the money on hand to meet the terms of your new agreement.
What Happens if I Don’t Pay?
If you are unable to meet your obligations to the creditor, you could face a lawsuit. Make sure you reach out to your creditor and make them aware of your situation if you find yourself unable to pay for your debt. In general, if you plan on making a lump sum payment to the lender, ensure you have more than enough cash to handle that payment in addition to your other living expenses.
What Type of Debt Can I Settle?
When you take on a debt, you are legally obligated to pay off that debt. Creditors are not obligated to settle with you, and some of them are less willing than others.
In addition to that, there are certain debts that you can’t settle. For example, if you have secured debt, such as a house or a car, the lender may want to take the collateral back instead.
You may be stuck with a balance due even after they sell the asset. You may be able to negotiate and settle on that remaining balance, but that is up to the lender.
Unsecured Debt
Unsecured debt such as credit cards, personal loans, or medical bills is a bit easy to negotiate a debt settlement with. This is because these types of debts don’t have anything backing them. Settlement of the debt gives the lender some chance of recovery for the money they lent you.
Does Debt Settlement Affect My Credit?
As mentioned earlier, once you agree to the debt settlement and pay off the debt, you can remove it from your credit. This all depends on the terms of your new agreement with the lender.
Some may report to the credit bureaus that they settled the debt for less, while others may be more inclined to remove the debt from your credit after they receive payment. Before you enter any agreement with a creditor, you should have a debt relief attorney look over your documents. If you want the creditor to promise to remove the debt from your credit report, it must be included in that document.
How To Hire a Debt Relief Attorney
If you’ve made the decision to move forward and work with a debt relief attorney, there are a few things you need to look out for. First and foremost, you must work with a lawyer with a law license.
This may sound like a no-brainer, but there are individuals who claim they are a lawyer when they are not. So to ensure you’re working with a true professional, check their credentials against your state’s bar association.
Ask Friends and Family
Your friends and family members are an excellent source for finding information. You know you can trust them to steer you in the right direction. If they worked with a debt relief attorney, ask them about their experience with the lawyer and what they did or did not like about the working relationship.
Of course, no two people are the same. Your experience with the attorney may differ from your friend or family member.
To be safe, you can always contact the lawyer for a free consultation. From there, you can better understand whether you want to work with them.
Look at Their Reviews
Most people like to talk about their experiences with certain professionals on the internet. You can use websites like Google Reviews or the Better Business Bureau to see what other clients did or did not like about a specific attorney or law firm.
Ask Who Will Handle Your Case
During your initial meeting with your lawyer, don’t hesitate to ask questions. The important question is, “who will handle my case?” If an attorney has a large caseload, they may hand your case off to a more junior attorney or their legal staff to manage the case.
Although it is not bad for them to utilize their resources, you don’t want the attorney to merely hand over your case to other individuals. This makes it hard to keep up with what’s going on with your case, and your attorney won’t answer any questions you have, since they won’t have their hands on it as often as they should.
Experience in Consumer Law
You want your attorney to have experience in consumer law issues. They should have extensive knowledge of your rights and how to best negotiate a settlement that works best for you and your situation.
Do I Need a Debt Relief Attorney?
In general, you don’t need an attorney to handle settling your debt, but it does not hurt to at least reach out to one for legal advice. As mentioned earlier, most reputable attorneys provide their clients with a free consultation to see if the working relationship is necessary.
If it is not, they can point you in the right direction. If you’re facing a creditor lawsuit or need help negotiating debt, you can benefit from hiring a debt relief attorney.
Best Debt Relief Attorney Near Me
Handling your debt is an overwhelming experience no one should have to manage on their own. Not only do you have creditors calling you and asking you for money, but you most likely already have financial obligations you must keep up with.
When it comes down to choosing to pay your light bill or debt you previously owe, you will most likely go with the former option. If you are struggling to deal with your debt, facing a lawsuit from a creditor, or need help settling the debt for less, you could benefit from partnering with a debt relief attorney.
Contact Us for a Consultation Today.
We are here to answer any questions or concerns you may have about the debt settlement process. Call us at 215-545-0008.