DO I NEED A LAWYER TO MANAGE DEBT?

As the economy continues to slow down its obvious that a lot of people and businesses are facing financial difficulties and a lot of them are having a hard time with creditors who harass them with lawsuits, law enforcement agents etc. Whilst not encouraging financial irresponsibility on the part of debtors, it’s also important that undue and unethical debt recovery methods should be disallowed which is why a lot of debtors are turning to lawyers versed in debt relief and creditor rights to fight back against aggressive debt collectors. If a creditor is relentless in recovering monies owed by you, a lawyer is a good resource to understand your rights and provide a path to negotiate or escape harassment from debt collectors.Getting behind on bills and owing past due money is a terrible position to be in. But the good news is that even if you owe money to a creditor, you still have rights.

A debt lawyer is someone with the knowledge, credentials and skill to help someone struggling with debt sort through financial troubles. Debt lawyers can use their skills and knowledge of the law to serve as a negotiator when dealing with debt-related problems, such as working with creditors, bankruptcy and lawsuits that people or businesses can face when they can’t pay their bills.

A debt lawyer has experience navigating through the legal system, making it more likely that you will be successful overcoming any legal obstacles you might face because of looming debt. A debt lawyer can help you determine the best route for you to work through your debt issues.

Advantages of Using a Lawyer

Knowledge A lawyer versed in debt relief and creditor rights will be familiar with laws that govern how and when a creditor may collect on a debt, and procedures the creditor must comply with when collecting a debt. If a creditor violates the law, these laws also provide you with various remedies. A competent lawyer can ensure that creditors abide by the law, or can help you seek redress if the creditor violates the law.

Experience Dealing With Creditors. A lawyer who has experience negotiating settlements with creditors may be able to predict some likely outcomes, given your particular situation. This may include settlement for a reduced lump sum, a payment plan over time, or even the creditor’s refusal to negotiate. However, because creditors generally handle negotiations on a case-by-case basis, it will be difficult for the lawyer to nail down exactly what to expect in terms of a settlement.

Time is Money. Hiring a lawyer to handle negotiations reduces the burden on you and leaves you to concentrate on improving your finances.

Disadvantages of Using a Lawyer

Lawyers Can Be Expensive. Unless you are able to obtain help from a legal aid or pro-bono service, hiring a lawyer will cost money. You don’t want the lawyer’s fees to approach the total amount of debt you are trying to settle. Most lawyers will offer you different payment options such as a lump sum retainer that you periodically replenish or a pay-as-you-go plan.

Lack of Control. When you hire a lawyer to handle a matter for you, you relinquish some degree of control over the matter. Although there are certain decisions where the lawyer must get your authorization, the lawyer has wide discretion when it comes to most aspects of the negotiation. A competent, experienced lawyer will listen to your concern and then adjust the negotiation strategy accordingly. While this is partly what you’re paying the lawyer for, it can be frustrating at times because you may believe the lawyer should take a different approach. Ultimately, you make the final decision of whether to accept or reject a settlement offer.

Lapses in Communication. One frequent complaint about lawyers is lack of communication. Some people feel that their lawyer doesn’t respond promptly to calls or emails.

Results Are Not Guaranteed. A lawyer cannot guarantee results. If the lawyer does not obtain a favorable outcome or fails entirely, you are still liable for the debt. This means that you could pay your lawyer’s fees and end up in a financial situation that is worse than when you started. On the other hand, if the negotiations are successful, you may pay the lawyer and walk away from the debt entirely.