If you are in debt, it can be difficult to find a way out. You worry about the future of your finances and what will happen if you cannot get ahead. One option is to work with a lawyer who specializes in debt settlement law. Read on for all the information you need to know about this type of attorney, from their role to cost and more!
What is a debt settlement attorney?
A lawyer who specializes in debt settlement law will work to negotiate with your creditors and reduce the amount you owe. They may be able to settle your account for less than half of what it currently stands at, giving you time to get back on your feet.
How do Debt Settlement Lawyers help?
Debt settlement lawyers provide a way to eliminate your debt and avoid bankruptcy. They will work with you and your creditors to negotiate the amount of money that is owed, drawing up an agreement for all parties involved. The time frame varies depending on how much money is negotiated from creditor to creditor, but it can take anywhere between six months to one year or more.
What are the risks of hiring a Debt Settlement Lawyer?
Debt settlement law is not always successful, and many people find that they end up in insolvency because of additional interest charges accrued on their debt while they wait for negotiations to be finalized. This can happen if your creditors change their mind about the terms of repayment, fail to honor the agreement, or if you find yourself unable to afford the monthly payments.
Cost of a Debt Settlement Lawyer
The cost of a debt settlement lawyer will vary depending on the complexity of your case, which is why it’s important to consider whether or not you can afford this service. Be sure to shop around for quotes and talk with an attorney about what they offer before making any commitments.
The cost of hiring a debt settlement lawyer is based on the number and type of creditors, as well as how much money you owe. Debt lawyers charge from $300 to $1500 per hour for their services.
Things to know before you Hire a Debt Settlement Lawyer
-It is difficult for a debt settlement attorney to settle everything at once because there are so many creditors involved in the process.
-Debt settlement lawyers can negotiate with your creditors, but they cannot force them to accept the terms of repayment.
-Creditors will typically agree if you offer 50% or more money owed on past due balances and pay 67% on future monthly payments
-If debt negotiations do not go well, a bankruptcy lawyer may be the next step.
-When looking for a debt settlement lawyer, make sure they are licensed in your state or province, check out the BBB to see if they have any complaints or unanswered questions from previous clients to get an idea of what working with them is like.
Can you Do Debt Settlement on Your Own?
You can work with a debt settlement lawyer on your own, but be careful about accepting any offers from creditors. A reputable law firm will ensure that the creditor is in agreement and legally obligated to follow through, which prevents you from finding yourself in an even worse financial position down the line.
It is possible to do a debt settlement on your own, but it will be more difficult. You must know the details of all that you owe and what each creditor is willing to negotiate before negotiating with them yourself.
It is possible to do debt settlement on your own, but it can be time-consuming and not all of the negotiations will go well. You’ll need to contact each creditor individually, which may take months or even years because you are only one person versus working with a specialist who has dealt with this type of situation before.
What is a Good Settlement Offer?
Debt settlement offers will vary depending on the creditor and your personal situation, but a good offer may be around 50% of what you owe.
A good settlement offer is typically 50% or more on past due balances and 67% on future monthly payments.
A debt settlement lawyer can negotiate with all of your creditors to help settle debts for less than half of what you currently owe them. It is important that you do not go into negotiations without an expert on your side, as the process can be complicated and fraught with risks.
It is important to have a budget in place before hiring a debt settlement lawyer because someone who has been struggling with debt may not be able to afford the service. Debt negotiations can take years, which means that you’ll need to be able to cover living expenses in the meantime.
The lawyer is available for you, which means that they can stay on top of your case and help you make sound decisions about finances or any other legal matters so you don’t have to worry about them while waiting for negotiations to be finalized.
Do Debt Settlement Lawyers Offer a Free Consultation?
Some debt settlement lawyers give consultations for free, but it is not always the case. Be sure to ask before making an appointment or financial commitments.
A consultation with a lawyer who offers settlements usually lasts around an hour and can be done in person, over phone, or by email. It will help you learn more about what a debt settlement entails and whether or not you want to go through with it.
Do Debt Settlement Lawyers Charge an Hourly Fee?
An hourly fee for a debt settlement lawyer will depend on their experience, the state where they practice law, and how many hours are spent working on your case.
Average fees start at $150 per hour. This may be higher depending on the lawyer or how much time they spend working on your case.
Do Debt Settlement Lawyers Take a Percentage of What You Owe?
Debt settlement lawyers may take between 15% and 30% of what you owe as payment for their services, but this will depend on factors such as where they are located and whether it is just a consultation or an ongoing case.
A debt settlement lawyer may take between 15% and 30% of what you owe as a payment for their services, but this will depend on factors such as where they are located, the type of service being provided (consultation versus ongoing), and so on.
For example, some lawyers charge by the hour and others charge by the percentage of debts they negotiate.
Do Debt Settlement Lawyers Handle All Legal Matters Related to an Ongoing Case?
Some debt settlement lawyers offer ongoing services to clients, but it is not the norm. Be sure that you know what these legal matters are before hiring someone for your case because some steps may have to be taken on your own.
A debt settlement lawyer deals with the legal aspect of your case, but you will be responsible for all other aspects like contacting creditors and keeping records.