Debt settlement attorney
LexInter | July 19, 2022 | 0 Comments

Should You Hire A Debt Settlement Attorney?

When you are thinking about paying your debts or are confused about whether negotiating a settlement would be good enough, an experienced debt settlement attorney will analyze your situation and provide you with legal and practical advice. Unfortunately, debt has become a way for most Americans, and according to new data from the Federal Reserve Bank of New York, consumer debt has reached $15.6 trillion.

Many people find debts very difficult to manage, and maybe you are also facing troubles. In this circumstance, a debt settlement lawyer can be your best option as he has negotiation skills, many years of practical experience, and debt collection-related knowledge. Moreover, A debt relief attorney can be helpful in many other ways, and we will describe them below. So, keep going.

What Is The Role Of A Debt Settlement Attorney?

Personal injury lawyer

A professional settlement attorney helps his clients to deal with lenders, debt collectors, and creditors. In most cases, he helps his clients settle much less than they owe the creditors. Instead, they concentrate on unsecured debt like private student loans, credit card debt, and medical bills and help people who are struggling with these conditions.

However, debt relief attorneys have the knowledge of debt collection laws, and they will help to defend practices of illegal and unfair debt collection. Moreover, they will protect you from the suits against you, and they can suggest possible alternatives to settling. They are not like the debt settlement companies as they have higher ethical standards and work for the clients’ best interests.

Debt Settlement Attorney: When To Hire?

Hiring a debt settlement attorney isn’t the right choice for everybody. However, in critical situations, a debt relief attorney can help big-time. There are specific situations when it’s good to work with a debt settlement lawyer:

Having A Massive Amount Of Debt

If you are dealing with one or two small debt-like-less than $1000, it won’t be worth it to get an attorney as you can handle this on your own. In addition, it would cost you more money to hire a professional lawyer and go to court.

On the other hand, if your loan is enormous or you have more accounts, judgments, creditors, or liens disturbing you by sending letters or phone calls, you should hire a debt relief attorney. Though there are legal and court fees included, there might be an opportunity to save money and get relief from debt once and for all.

A Lawsuit Is Against You

More Debt

When a collection agency or a creditor makes a lawsuit against you, a debt settlement attorney can help you through this critical situation, and he will ensure that you are protected during the court process. In addition, you will get the correct information about your rights, current debt collection laws, and the court process. In addition, they will communicate with the collector or creditor; hence you won’t need to deal with them personally.

However, if you have a counterclaim or defense to the lawsuit, a debt settlement attorney Ohio (if you are from Ohio) will help to defend and respond to the case.

Generally, a professional lawyer has the experience so that he will find a way to resolve the issue. For example- if he finds out that the statute of limitation on the debt has passed or the creditor has failed to prove you owe the debt, your lawyer can help to get the case dismissed in court.

Or situations like you have already paid the loan previously, and your attorney will file a counterclaim on behalf of you. The result of this counterclaim can be a lawsuit withdrawal, or the creditor may owe you a money judgment.

Judgment Against You

When you lose the lawsuit, judgment comes against you; a professional attorney can help you. Generally, courts give debt collectors and creditors strong tools to collect the debt from you, which may include freezing bank accounts, garnishing wages, and placing a lien on the property to collect the debt amount. Furthermore, the judgment may also include court fees and interest plus the creditor’s attorney fees.

In this situation, if you are in Ohio, you need to hire a professional debt settlement attorney Ohio, who will help settle the judgment for less or may challenge it in court to get the judgment vacated. A debt settlement attorney Ohio will determine the hidden facts to challenge the ruling, and it would ultimately result in not having to pay the loan.

Commercial Loan

Commercial Loan

Generally, people take a large amount of money for commercial usage purposes, and this type of loan needs a lot of effort and time. In addition, borrowers have to follow strict guidelines.

However, some businesses may face losses, and due to their financial situation, it becomes almost impossible to repay the debt. This may lead to severe outcomes.

A business debt negotiation lawyer can help with the settlements of business debt. Moreover, when you hire a business debt negotiation lawyer, he will negotiate directly with the creditor and assist you with the Small Business Administration (SBA) loan.

So, if you have an SBA loan and you are unable to repay it, you should hire a business debt negotiation lawyer.

How Do Debt Settlement Lawyers Charge Fees?

Lawyer Fees

Different debt settlement lawyers have different charges. So when you first meet with the lawyer, you should explain the facts and discuss the fees for your case.

When you hire a debt settlement lawyer, you should get a written agreement stating how you will pay for legal services. A debt settlement lawyer can charge an hourly or flat fee based on the creator’s number and maybe from your debt percentage or savings.

Final Words

The only way you can get debt relief is by settling the debt, and a good debt settlement lawyer will help to settle your debts. In addition, they will provide proper advice and directions on debt-relief options like debt management, bankruptcy, and debt consolidation. So, hire a debt settlement attorney if you are facing troubles due to a massive loan.

Avatar of LexInter


Lexinter Law, with a team of dedicated authors who strive to provide you with all the relevant and actionable tips on the legal aspect of your life. Our goal is to educate you so that you can make legal action with ease, or find the right person who can help you with your unique personal legal dilemma. Take care!