The answer to this question is not a simple yes or no. It depends on the situation and the person’s circumstance.
If you have unpaid debts and are unable to repay them, then there is a high chance that you will need a lawyer to help you out. A debt settlement attorney can help you settle your debts for less than the amount owed.
But there’s additional information you should be aware of before contacting an attorney such as the following:
What is debt settlement?
Debt settlement is an agreement between a debtor and the creditor to settle the debt for less than the original amount owed.
Debt settlement is becoming more popular in recent years because it is a way to avoid bankruptcy. However, this does not mean that debt settlement is always better than bankruptcy.
In some cases, it might be beneficial for people who are still able to make payments on their debts to continue making those payments instead of entering into a debt settlement agreement.
Is it worth it?
Debt settlement can be done by contacting the creditor and negotiating a payment plan that satisfies both parties. The creditor will often agree to lower payments and forgive some of the debt in return for getting paid something, rather than nothing at all.
Debt settlement may be worth it if you have enough money to make payments on time, but not enough to pay off the debt in full.
What are the legal risks of debt settlement?
Debt settlement is a legal process but it can have some serious risks. The debtor might not be able to keep up with their monthly payments, and creditors might sue them for the remaining balance of their debt. Debtors could also end up back in debt if they don’t keep up with monthly payments or if they don’t save enough money before filing bankruptcy.
Debt settlement can also be risky for consumers because it may result in negative information being reported to credit bureaus. The negative information will remain on the consumer’s credit report for up to seven years and may prevent them from obtaining future loans, lines of credit, and other financial products.
Do I need an attorney?
Debt settlement is not without risks, and the consequences of a failed settlement are dire. Debtors should consult with an attorney to ensure that they are aware of all the risks before agreeing to this type of debt relief plan.
If you are thinking about going for debt settlement, you should consult an attorney first. The attorney can help you understand your legal rights and responsibilities under the law and advise you on your options.
How to Find an Attorney for Debt Settlement
One way to find a bankruptcy attorney is to ask for referrals from friends and family members. Another way is to search online for reputable attorneys with experience in debt settlement.
An attorney can help you with your debt settlement by negotiating a new payment plan with your creditors or by filing for bankruptcy on your behalf.
The process of finding an attorney can be confusing and overwhelming, but it doesn’t have to be. With a little research and some help from friends, you’ll be able to find the perfect lawyer in no time!
