What Does A Debt Relief Lawyer Do? Do You Need One?
When your loans and credit card payments seem to be huge, then a debt relief lawyer might come in handy.
Debt relief lawyers work with lenders to negotiate the debt money you owe to them that acts in your best interest.
In this article, we will discuss the role of a debt relief lawyer and situations when a debt settlement attorney is essential.
Contents
What Does A Debt Relief Lawyer Do?
A debt relief lawyer is a legal practitioner who will assist you in the process of paying or writing off your debts.
There are two basic services that you can observe from a debt relief lawyer to do.
These two basic services are as follows:
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Debt Relief Lawyers Pay Off Debts For You
You might be a professional or business owner who is required to pay your debts to other services that assist you in managing your profession. Or you can also have credit cards that you use to pay for goods and services as a form of credit.
If you are unable to pay the amount that you owe your creditors, you will be getting a ‘letter of demand.’ This letter will ask you to pay the amount along with interest, penalties, or other charges.
A debt relief lawyer will negotiate on your behalf with your creditors. Debt settlement attorneys might ask your creditors to restructure the loan and provide more time to you for repayment.
In case you are suffering from financial distress, then the debt relief lawyer can assist you by asking your creditors to reduce the debt amount or payment of the debt in installments.
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Debt Relief Lawyers Can File For Bankruptcy Proceedings On Your Behalf
Debt relief lawyers have the authority to proceed with your bankruptcy. There are a variety of bankruptcy proceedings that require different rules and regulations.
And these rules and regulations vary from state to state and at federal levels.
Debt relief lawyers have the ability to prove on your behalf that you will not be able to pay your debts due to a lack of finances.
Due to this, debt settlement attorneys will be able to effectively liquidate your existing cash for the purpose of resettling your debts.
The process of liquidation involves selling assets like jewelry, cars, real estate, and stock certificates to turn them into cash.
Assets are liquidated for the purpose of repaying the debt that is owed to the lenders.
Services That You Can Expect From A Debt Relief Lawyer
On your behalf, a debt settlement attorney can provide you with a variety of services.
The services you can expect from a debt relief lawyer are as follows:
- Writing to your debtors or creditors.
- Writing to government agencies like the IRS.
- Filling up forms for proceeding with bankruptcy.
- Submission of financial statements like tax reports or profit or loss documents.
Do I Need A Debt Settlement Attorney?
Do you have a large amount of debt you are yet to settle? Or you do not have the required resources to settle your debt.
If faced with any of such situations, then you require a debt relief lawyer to solve your woes.
It can be effective if you first acquire guidance from a non-profit consumer credit counseling service to assist you in building your budget and providing you with financial assistance.
Even after acquiring assistance from a credit counseling service you are still struggling to resolve your debts, then you will require a debt relief lawyer.
The debt relief lawyer will assist you in the consolidation of your debt effectively and legally. Moreover, they can also help you in reducing your debt or keep you in a payment plan.
Your debt settlement attorney will know the best strategy for the reduction of legal risk along with the risk that might affect your credit score.
Debt relief lawyers tend to be similar to bankruptcy lawyers. But a debt settlement attorney will assist you in the first place in restricting you from going into bankruptcy.
Moreover, a debt relief lawyer will provide you with better strategies and guidance regarding ways you can overcome your debt than a financial counseling service.
How Much Does A Debt Settlement Attorney Cost?
There are many debt relief lawyers who will be charging you based on contingency.
Contingency means that you will not be required to pay your lawyer, but he or she will be taking a percentage if you win the case.
The rate of percentage your lawyer will be taking will be based on the amount of debt you owe to your creditor or the amount they have saved you from.
The cost of hiring a debt relief lawyer will be based on the region you are living in and the amount you owe to your creditor.
On average, a debt settlement attorney would cost you around $500 if they were negotiating a simple credit card bill. On the other hand, the cost can rise to $5000 if they are handling a complex debt case.
You are advised to establish a rate upfront with your hired debt settlement attorney so that you are not taken away by any surprise fees in the bill.
Final Thoughts!
Now you have an idea about what a debt relief lawyer is and when you might need them to resolve your debt situation.
If you are confused about ways you can settle your debts to your creditors, we’ll suggest that you seek assistance from a professional debt relief lawyer.
A debt relief lawyer has the capacity to negotiate on your behalf for the purpose of reducing your burden of debt.
We have listed experienced and professional debt relief lawyers on lawyersinventory.com who are looking forward to resolving your debt in a legally effective manner.
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