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January 04, 2020

When to Consider a Lawyer for Debt Settlement

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Posted in Wisconsin Workers Compensation Related News

Debt happens. Unfortunately, it often doesn’t sleep, as interest builds and builds until you find yourself in a difficult situation. You might have creditors threatening to send your bills to collections, debt collection agencies calling you and could be in a world of confusion because you currently don’t have a way to pay your debt. The good news is you can hire a lawyer to help you settle. Not sure when to call in the professionals? The following are four times you might consider it.

You Have a Considerable Amount of Debt
The amount of debt you have could play a large role in whether you need to hire an attorney. It could be more beneficial to work directly with the creditor. Some will give you a better chance if you offer a large portion of the payment right now. For example, if you owe a $1,000 debt, and you are able to pay $800 right now, the creditor might consider it settled and accept the $800 payment.

If your amount of debt is much larger, say around $30,000, it will obviously be harder for you to reach a settlement within your budget. You may not have anywhere near that much to offer the creditor. This is when a lawyer might come in handy so you can work toward getting your debt settled lower than $30,000, but still at an amount that is fair for the creditor.

The Creditor Is Suing You
It’s possible the creditor for which you carry a debt will sue you if it has been too long without payment. Creditors have just as many rights as debtors, and you could have a serious judgment placed against you. Hiring an attorney is one of the best ways to settle your debt with the most favorable outcome in this situation.

Your Wages Might Get Garnished
Some creditors are able to get your wages garnished if too much time has passed without payment. With garnished wages, debtors typically end up in more serious financial trouble than they started with. Hiring a debt settlement attorney could help you avoid this whole situation.

Bankruptcy Seems Like Your Only Option
Bankruptcy can be a good thing in some circumstances, but it can also be a bad thing. It’s a good solution if you have absolutely no other option, but it stays on record for seven to ten years, depending on whether you file Chapter 13 or Chapter 7. Bankruptcy can also be an expensive route to take, which could end up putting you in a worse situation. A lawyer can walk you through all the pros and cons, as well as possible outcomes, to determine if this is truly your best option.

Contacting a Lawyer
As you can see, there are some good reasons to hire a lawyer, like a bankruptcy law, for debt settlement. Contact a debt collection attorney today to get started.

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