Sometimes, we get into the claws of deep debts due to medical emergencies, job loss, or other events. It becomes difficult for us to manage all our house expenses at such times. Credit card debt and other loans are the second thoughts. One of the ways to tackle this situation is to go for debt relief. You can do this by yourself or hire a professional debt lawyer. Though the latter sounds costly, the results it gives are satisfactory and worth your pay. This article will explain to you what debt settlement is? And why hire a settlement lawyer for the same?
What is debt settlement?
Debt settlement is providing the creditor with a lump-sum payment for a specific part of your debt being forgiven. Consumers who have unpaid medical bills or haven’t paid their credit card dues are eligible for this option. Debt settlement hurts your credit point.
Duties of the debt settlement lawyer
Often we are under unsecured debts like credit cards, student loans, or medical bills. These debts do not possess any collateral, and thus, we can go for settling this debt with the creditors. A debt settlement lawyer is responsible for negotiating with the lenders and making them agree on lowering the debt amount (unsecured) you owe.
When to hire a debt lawyer?
- You are under a huge debt
It is easy to negotiate with the lender when you owe a manageable amount; for example, if you have Rs.3000, you can go straight to the creditor by yourself and ask for a settlement at Rs.2000. But in the case of a considerable amount like one lakh or more, it won’t be feasible for you to talk alone. In such situations, you need to hire a debt settlement lawyer to bring the number down by negotiation.
- Chance of garnishment of wages
In some cases, if you missed the payment of your loans more than two times, then there is the chance that your wages be garnished. This will put you in more financial trouble. To prevent this from happening, or if you notice this is coming, it is better to hire debt consolidation lawyers to deal with creditors, lenders, or debt collectors.
- When sued by a creditor
As per laws, consumers have legal protections. While creditors also have the right to start a lawsuit against the consumer who doesn’t pay back their credits. During the court trials, if you feel that the judgment will be against you, then that point without thinking, you must hire a settlement lawyer to prevent yourself from getting bankrupt.
- To prevent yourself from bankruptcy
If your debt has crossed all the borders and you have an intuition that you are on the way to getting bankrupt at that stage, you can take the bankruptcy services, which include consultation with your debt settlement lawyer.
Cost of Settlement lawyer
Most lawyers take the percentage from the money you win or the money they save you from giving the creditor. The prices of these lawyers depend on your locality and property. It is essential to establish a rate upfront to protect yourself from any further extra charges.
Conclusion
A debt settlement lawyer acts as a credit card debt lawyer, a debt consolidation lawyer, and bankruptcy services consultant. He is highly useful in difficult situations like being in massive debt, way to get bankrupt, or being sued by a creditor. He can be hired in case of garnishment of your wages due to delinquent loans. Also, hire a good settlement lawyer; it may cost you more but save you from great trouble.
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