When you are drowning in debt, it may seem insurmountable. Debt collectors use threats to try to recover as much as possible so they can get credit for the collections. However, there are ways to reduce the debt load without paying the full amount owed. That leads many consumers to ask if they need a lawyer to settle their debts.
How Can an Attorney Help?
Whether from divorce, job loss or bad decisions, unsecured debt can climb quickly. When you aren’t able to make payments, that debt can rise exponentially with late fees and increased interest. Student loans, credit cards or medical bills can get turned over to debt collectors who call day and night, adding to the stress you are already experiencing. An attorney can help you not only reduce the total amount owed but may save your credit rating by negotiating repayment instead of you abandoning it.
When Should I Hire a Lawyer?
Do you have a lot of debt? Have you tried to work with a credit counselor to streamline your budget but are still having trouble meeting your obligations? Have you unsuccessfully attempted to reach a payment agreement with your creditors? It may be time to talk to an attorney.
You need to retain an attorney if your creditors file a lawsuit for defaulting on your loans, credit cards or other debt. It is never a good idea to attempt to represent yourself, even if you are a legal professional. An attorney understands the laws in your state and can represent you in court. He or she can also work on your behalf with the plaintiffs to reach a settlement.
When Is Bankruptcy the Answer?
If you are in danger of losing your home, if you have children or aging parents who depend on you for support, or if you have no money left for food or utilities from trying to pay your bills, bankruptcy may be your only option. However, don’t wait until you’ve reached such dire straits to reach out for a consultation. There is no obligation if you consult a bankruptcy attorney in your state to discuss your options. Understanding that there is a solution if you need it can relieve part of the stress.
When your financial situation takes a hit, and you need help to understand your options, talk to a debt harassment lawyer. You may find relief from the crushing debt and harassment of collectors.