How a Debt Settlement Attorney Can Help You
6 MIN READ
Published April 06, 2023 | Updated April 19, 2023
A debt settlement attorney can help you when your debt is overwhelming. But, this may not be the right option for everyone. Here are a few things you should know before you decide to hire an attorney.
For many Americans, debt has become unmanageable with the rising cost of living.
Thankfully, there are several debt relief options available today to choose from to relieve the burden of overwhelming debt. Hiring a debt settlement attorney is one option.
Young borrowers are struggling with auto loans and credit card payments the most.
In 2021, household debt rose to over $16 trillion. Credit card balances reached $986 billion.
Keeping up with repayments can be challenging, and sometimes your financial situation may seem to be bleak.
There are many situations when debt settlement attorneys can help. But before you decide to hire one, here are a few things you should know.
What Does a Debt Settlement Attorney Do?
A debt settlement attorney helps you deal with creditors, lenders, and debt collectors through debt settlement and strategies that protect you against unfair debt collection practices.
They work with people struggling with tough financial situations like unemployment with unsecured debts like medical bills, payday loans, student loans, and credit card debts.
Lawyers have in-depth knowledge of debt collection laws. They also defend clients that are sued by collectors.
An attorney can also walk you through all of your options if you are seeking debt relief and may offer you alternatives to debt settlement.
They advise and educate you about all your options so you can get a reprieve from unrelenting debt.
Why Hire a Debt Settlement Attorney?
If you have a large amount of debt and are struggling to pay it off, you may want to get in touch with a debt settlement attorney.
An attorney can help you minimize your legal risks and offer you a number of solutions to pay off your debts, such as debt consolidation, monthly payments, or debt settlement.
Here are a few more reasons why you should consider a lawyer:
- An attorney knows consumer protection and debt collection laws.
- They can offer you legal advice.
- Debt settlement attorneys can defend you if you are sued by collection agencies.
- The attorney-client relationship ensures that your confidential information will not be disclosed to anyone else.
- They can negotiate on your behalf to seek a lower interest rate or reduce the amount of debt you owe.
- They can defend you against questionable or illegal collection practices.
- Bankruptcy attorneys can help you with alternatives like bankruptcy.
If you find yourself in a situation where you are unable to pay your debts, have missed payments, have a bad credit score, or are getting unrelenting collection calls, it may be wise to consult with an attorney on the best course of action.
Debt Settlement Lawyer Vs. Debt Settlement Company
A debt settlement attorney can educate you on all the options available to you to pay off your debts. A lawyer can also defend you in court if you are sued by a lender.
They can provide you with advice on what to do if a lender violates the Fair Debt Collection Practices Act.
Over 40% of all FDCPA violations are harassment of the debtor through incessant phone calls. 14% of violations involve the use of abusive language. If you are on the other end of such harassment, your attorney can help you.
A debt settlement company can negotiate with your lenders on your behalf so you can settle your debt for less. These companies are skilled negotiators.
They are educated and trained to deal with lenders so you can get the best possible results.
A debt settlement company can help you save up to 50% of your enrolled debt before fees, resulting in huge savings.
How Much Does a Debt Settlement Attorney Cost?
Debt settlement lawyer fees vary based on the complexity of your case. There are several different fee structures based on which an attorney may decide what to charge.
Flat fee per debt
Flat fees can range from $500 to $5,000 per debt, depending on the complexity of the negotiation.
Hourly debt collection attorney fees can range from $150-$350. This will depend on the types of debts, how many debts you have, and the state where you reside. In some cases, a retainer may also be required.
Percentage of Savings
If an attorney is negotiating a debt settlement for you, they may also charge a lump sum of the amount you save through the settlement.
Percentage of Debt
Some law firms may charge you a percentage of the total debt you owe.
In many instances, your attorney may charge you higher fees if:
- You are filing for bankruptcy.
- You want to negotiate the terms of mortgage, car loans, or other secured debts.
- You want to counterclaim a collection lawsuit.
- You want to defend a judgment against you.
What to Expect When Working with a Debt Settlement Attorney
A debt settlement attorney can help you recover from unrelenting debt problems.
If your situation is so dire that you are filing for bankruptcy, you should set up a consultation with a bankruptcy lawyer at the earliest.
An attorney will take the time to take a look at your situation and help you choose the best debt relief program to pay off the debt fast while ensuring that you are legally protected.
From debt collection lawsuits and debt negotiations to setting up payment plans, a debt relief attorney can provide a number of services.
If you are pursuing a settlement, an attorney should also be able to reduce the amount you need to pay back to your creditors.
Hiring an attorney increases your chances of saving money and paying off your debts faster than handling debts on your own.
A skilled debt settlement attorney can analyze your situation and provide you with practical legal advice.
They can minimize your legal risks and help you pay off your debts through their knowledge of debt collectors, negotiation skills, and practical experience.
Whether you are looking for debt settlement, consolidation, or any other type of debt relief, TurboDebt can help you determine your best option.
Our counseling, consultation, and planning services can help you find a program that fits your needs perfectly. Connect with our experienced debt relief professionals for a free consultation today.
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