When You Should Consider Hiring a Debt Settlement Attorney

Are you struggling with overwhelming debt? Perhaps you've tried to negotiate with creditors and manage your finances on your own but to no avail. In these cases, you may consider hiring a debt settlement attorney to help you resolve your debts to better manage your finances. 

A debt settlement attorney can assist you in negotiating with creditors, help you navigate legal proceedings, and provide valuable insights into your options for debt relief. Checkett, Pauly, Bay & Morgan, debt settlement attorneys in Joplin, Missouri, explore why hiring a debt settlement attorney can be a smart choice for anyone dealing with excessive debt.

What is debt settlement?

In debt settlement, the person in debt negotiates with creditors to pay off their debts for less than what is owed. Essentially, it involves coming to a mutually agreeable compromise in which the debtor pays a portion of their debt, and the creditor forgives the rest. This could be a suitable choice for individuals who are struggling to pay off their bills and are willing to accept a hit to their credit score in exchange for getting out of debt.

It is not a one-size-fits-all solution, however, and it is not right for everyone. Consult with a financial advisor or debt settlement attorney to determine if debt settlement is the best course of action for your situation.

When should you consider hiring a debt settlement attorney?

There are several scenarios in which hiring a debt settlement attorney might be a good idea. If you are under financial hardship and are unable to make your debt payments, an attorney can help negotiate with your creditors to reduce your debt load or create a more manageable payment plan. 

If a creditor is threatening to sue you, an attorney can help you defend yourself and negotiate a settlement that works for both parties. 

Additionally, if you are being harassed by debt collectors, an attorney can help you stop the harassment and protect your rights. Overall, hiring a debt settlement attorney can be a good option if you need professional guidance and support to deal with your debt and get your finances back on track.

How can a debt settlement attorney help you?

Debt settlement attorneys can help you in a number of ways, including negotiating with your creditors to reduce the amount you owe, drafting a payment plan, and representing you in court if necessary. 

They can also provide expert guidance and legal advice throughout the debt settlement process, helping you understand your obligations and ensuring that your rights are protected. 

An attorney can also work to protect you from harassing creditor calls and ensure that you are treated fairly throughout the entire process. With the help of a skilled debt settlement attorney, you can move toward achieving financial freedom and a new stage of your life.

Debt Settlement Attorneys in Joplin, Missouri

Checkett, Pauly, Bay & Morgan will help you find the best option for your debt and advise if debt settlement is right for you. You are welcome to call for a free consultation at (417) 358-4049.

Will My Bankruptcy Affect My Spouse’s Credit

Bankruptcy represents a stressful time for couples, but what happens if only one spouse declares bankruptcy? Someone considering bankruptcy in this situation might be worried that their bankruptcy might also affect their spouse's credit.

The lawyers at Checkett, Pauly, Bay & Morgan explain how one spouse might be affected if the other declares bankruptcy.

Personal vs. Shared Debt

When a couple gets married, they automatically assume everything becomes shared, and in many cases that is true. But debt, however, legally, only belongs to the person who borrowed the money under their name. If a couple takes out a loan together, in both of their names, it becomes a shared debt. Or if both spouses open a credit card account with both people listed on the card, then any debt accrued belongs to both.

If a person has a debt from before they are married, or if they take out a loan or open a card only in their name, then their spouse is not legally responsible for that debt.

Credit Reports Can Reveal Shared Debts

One of the quickest ways to see who a debt belongs to is to check the monthly bill statement. In most cases, this should show everyone listed under the account.

If you aren’t sure if a debt is shared by both spouses, another easy way to find out is to pull a credit report. The credit report for each person should show what debts they are personally responsible for and how those debts affect their current credit score. If a debt shows on both spouses' credit reports, it is a shared debt.

Can One Spouse File Bankruptcy?

Yes, even if they are married, a person can file for bankruptcy for their debts. If the debts belong only to one spouse, then that person can file bankruptcy independently.

Will One Spouse's Bankruptcy Affect The Other Spouse?

This is where it is important to understand which debts are shared. Any debts shared between the person who files bankruptcy and their spouse will be affected and can change both credit scores. However, if all the debts under the bankruptcy are personal, it should not alter the spouse's credit. A credible law firm can help you navigate your bankruptcy and ensure it doesn’t affect your spouse’s credit, if possible.

Call Checkett, Pauly, Bay & Morgan in Carthage, MO

The lawyers at Checkett, Pauly, Bay & Morgan can assist you with your bankruptcy and help with any questions you have. Contact us online or by calling (417) 358-4049.

Debt Settlement Attorney FAQs

Checkett, Pauly, Bay & Morgan is a law firm with decades of experience in several areas of law, including debt settlement. 

Today's blog answers several frequently asked questions about debt settlement attorneys.

What is a debt settlement?

Debt settlement typically occurs when a credit card company or other creditor files a lawsuit in court. The goal of the lawsuit is to use legal methods available to the creditor to try to get money from the person who owes the debt. When the lawsuit occurs, that is the best time to hire a debt settlement attorney.

What is a debt settlement company?

A debt settlement company is a for-profit company that claims to be able to negotiate with creditors to get them to lower your monthly payments. 

The difficulty with this strategy is that you will have to pay the debt settlement company money for their services. Your debt might actually grow because of the fees associated with paying the company. Fees can be high, and they might make your debt even higher than it was before you hired the company.

Even once you hire a debt settlement company, there is no guarantee that your creditors will negotiate with them.

Should I hire an attorney for debt settlement?

While not required during a lawsuit, there are some advantages to hiring a debt settlement attorney. 

The biggest one is that a debt settlement attorney will give you options for dealing with creditors, while a debt settlement company will always advocate paying your debts rather than declaring bankruptcy.

What does a debt settlement attorney do?

A debt settlement attorney will:

1. Offer a free initial consultation. Debt settlement companies won’t do that.

2. Give you options. A debt settlement company has a financial interest to convince you to agree to a settlement. An attorney can advise you as to every legal option on the table, such as negotiating with your creditors or declaring Chapter 7 bankruptcy.

3. Defend you against lawsuits. Creditors may sue you in court, particularly if you have unsecured debts like credit card debt and personal loan debt. A debt settlement attorney can defend you against lawsuits while negotiating with the creditors.  

4. Walk you through IRS regulations. A hidden consequence of debt settlement comes from the tax implications of canceling a debt. In general, the agency considers a canceled debt of $600 or more as taxable. We’ll outline how a debt settlement will affect your financial situation with a holistic approach.

How much does a debt settlement attorney cost?

It depends on the complexity of your situation. Simple negotiations may cost less versus multiple debt settlement cases. An attorney will outline the projected costs during their initial consultation with you.  

Where can I find a debt settlement attorney in Joplin, MO?

The experienced debt settlement attorneys at Checkett, Pauly, Bay & Morgan can help you negotiate with your creditors to find payments that can work with your budget. We will outline the best possible course of action for you based on our decades of experience and knowledge handling these negotiations.

We assist residents of Joplin and the surrounding areas if they have concerns with too much debt and debt settlements.

Contact our law firm or call (417) 358-4049 for a free initial consultation.

Bankruptcy Attorney FAQs

Checkett, Pauly, Bay & Morgan is a law firm with decades of experience in several areas of law, including bankruptcy filings. Today's blog answers several frequently asked questions about bankruptcy attorneys.

Should I get an attorney for bankruptcy?

Yes, the federal court system highly recommends hiring an attorney for Chapter 7 bankruptcy proceedings due to the complexity of each filer's finances. No one's situation is exactly like another person's, which is why the advice of a licensed attorney is highly recommended for these proceedings. 

What can I expect from a bankruptcy attorney?

During the initial consultation, a bankruptcy attorney will discuss several things with you, including:

• Your current financial situation

• Income

• Expenses

• Debts

• Assets

• Passing or failing the means test

• Credit counseling

• Whether filing for Chapter 7 bankruptcy is right for you.

After you hire an attorney, the person will provide:

• Sound legal advice

• Filing of all paperwork with the court

• Mailing automatic stay notices to your lenders

• Representation at all legal proceedings in bankruptcy court

• Consult with the trustee in the case

• Communicate with you regarding all aspects of your case

How much does it cost to hire a bankruptcy attorney?

Filing for bankruptcy costs $338, and attorney fees may vary from $500 to over $2,000, depending on the firm and the case's complexity. 

How can I pay for a bankruptcy attorney?

You can pay fees upfront, such as with an income tax refund, or an attorney may help you by making payment arrangements with you. Talk to your attorney for more information.

How fast can a bankruptcy attorney file a petition with the court?

Some law firms offer same-day bankruptcy filings. 

To be eligible for this filing, you might need to bring several things with you, such as:

• Attorney fee

• Preliminary form

• Court filing fee of $338

• Proof of completion of credit counseling

• List of your creditors from an official credit report

• Two months of bank statements

• Pay stubs from the last six months

• Previous year's income tax returns

• Titles from all vehicles you own

Can a bankruptcy attorney negotiate with my lenders?

Your bankruptcy attorney can help you negotiate with lenders and creditors by giving you advice. Keep in mind that you might be filing bankruptcy soon, and if your creditors have already received the notice of the filing, they might not be willing to lower any of your debts or monthly payments.

Where can I find a bankruptcy attorney in Joplin, MO?

The experienced bankruptcy attorneys at Checkett, Pauly, Bay & Morgan can help you file paperwork with the bankruptcy court in Carthage. We assist residents of Joplin and the surrounding areas if they have concerns with bankruptcy, too much debt, and debt settlements.

Contact our law firm or call (417) 358-4049 for a free initial consultation.

What Are the Differences Between Debt Consolidation & Debt Settlement?

If you’re searching for ways to reduce your debt, both debt consolidation and debt settlement can get you there, but they do so in different ways. As a result, either one or the other may be a better solution for you depending on your financial circumstances. 

If you’re not sure what to do to reduce your debt, Checkett, Pauly, Bay & Morgan can help. In this blog, we’ll explain the differences between these two strategies to help you determine which might be best for you.

Related post: Will My Bankruptcy Affect My Spouse’s Credit?

What is debt consolidation?

Debt consolidation is the process of combining multiple debts into one loan with a single interest rate. Essentially, with a consolidated loan, you can pay all your debts with one single monthly payment.

These types of loans are offered through banks, credit unions, online lenders, and other financial institutions. Once your debts are all consolidated into one loan, you’ll make a single payment to one lender instead of several different ones.

The main benefits of debt consolidation are:

• Not having to juggle multiple loans and payments every month

• Possibly securing a lower total monthly payment

• Getting a lower average interest rate on your debt

• Possibly improving your credit score (if you can reduce your credit utilization ratio)

What is debt settlement?

Debt settlement is the process of asking a creditor to accept less than the total amount you owe on the debt. If and when an agreement is reached, you would have to pay the amount that was agreed upon as a lump sum. Sometimes, you may also be able to pay it in installments.

However, even if you think debt settlement is the best option for you, creditors don’t have to negotiate with you. So, if you plan to go this route, you should have some cash on hand so that you’re able to pay the settlement amount out of pocket if necessary. That way, you’re more likely to be able to eliminate the debt without having to pay the full amount.

The main benefits of debt settlement are:

• Having an alternative to Chapter 7 Bankruptcy

• Being able to pay off the debt without having to pay the full amount

• Avoiding lawsuits from creditors

Related post: Bankruptcy Attorney FAQs

Get Rid of Debt with Checkett, Pauly, Bay & Morgan

If you need help to determine whether debt settlement or debt consolidation is the best strategy to get rid of or consolidate your debt, our experienced attorneys can help. You may find out that declaring bankruptcy is the best option, giving you a fresh start with your finances.

Contact Checkett, Pauly, Bay & Morgan, LLC, serving Joplin and Carthage, or call (417) 358-4049 for more information. The first consultation is always free.

Are You Filing for Bankruptcy in Joplin? Checkett, Pauly, Bay & Morgan Can Help

Do you live in Joplin and find yourself in a situation where bankruptcy may be necessary? Bankruptcy is not a decision to be taken lightly because it can affect your credit score for up to 10 years. 

In today’s blog from Checkett, Pauly, Bay & Morgan, we will discuss the types of bankruptcy and what you can do. 

Who Files for Bankruptcy? 

Of all bankruptcy cases, 97% are filed by individuals and not companies. Over two million people file every year. Bankruptcy happens for many reasons, such as a significant illness, a personal tragedy, or the loss of a job. A small portion of bankruptcies are the result of frivolous spending and high credit card debt. 

Why Would You Need to File for Bankruptcy?

You may not be sure whether you need to file for bankruptcy in Joplin. Here are some guidelines to help. Every person must undergo the means test to determine whether bankruptcy is even an option. 

Medical Bills 

Did you know that over 60 percent of all bankruptcies occur because of medical bills? Whether the result of a sudden medical emergency or a chronic condition over months or years, medical bills can be financially devastating to those with and without insurance. If you live in the Joplin, Missouri, area and finding medical bills are destroying your financial life, contact us today. 

Creditors Seizing Your Property 

If you defaulted on a car loan and creditors repossessed the vehicle, you might consider some form of bankruptcy. This applies to a foreclosure on a home or property as well. While your credit is already damaged, filing for bankruptcy can protect you from having other assets seized while you work with your attorney to either discharge the debts or build a repayment or restructuring plan. 

Divorce 

If you were having financial problems while you were married and filing for divorce, you might need to declare bankruptcy to wipe out the debt incurred while married. This is often the best option to gain control over your finances and make a fresh start. 

What Kind of Bankruptcy Should I File? 

There are two basic kinds of bankruptcy: Chapter 7 and Chapter 13. 

Chapter 7 discharges most kinds of debt, and it’s designed for people whose bills have become so high their income cannot pay them. Chapter 7 wipes the slate clean and gives you a fresh start with your finances. Checkett, Pauly, Bay & Morgan will consult with you as to your options.  

Chapter 13 bankruptcy has specific guidelines on how much debt you can carry. This is commonly called the wage earner’s bankruptcy because you must meet two criteria: steady income and unsecured debts. Debts can include credit cards, personal loans, and medical bills that, when combined, are less than $394,725 and secured debts like home and car loans of less than $1.1 million. 

If you are behind on government student loans, child support or alimony, or owe federal taxes, these cannot be discharged through bankruptcy. 

Chapter 7 Bankruptcy Attorneys at Checkett, Pauly, Bay & Morgan

If you live in the Joplin, Missouri, area and have trouble paying your bills or are experiencing any of the issues discussed in this blog, contact our law firm today or call (417) 358-4049. 

Bankruptcy Statistics in the United States by Checkett, Pauly, Bay & Morgan

In the United States, bankruptcy statistics are increasing at an alarming rate. In the last two decades, the number of insolvent people has significantly increased. 

As public platforms have improved their understanding of these bankruptcy statistics, many steps have been taken hoping that the growing numbers will decline exponentially. However, according to current statistics, more than 1.5 million people file for bankruptcy each year. 

What Does It Mean? 

So what does it mean to file for bankruptcy? Filing is a legal process that can involve companies or individuals who are unable to pay outstanding debts. Today, we will study some of these statistics to understand why bankruptcies are so common.

Basic Numbers 

Some basic statistics about bankruptcy: 5% of bankruptcy cases are attributable to frivolous spending or use of credit. In the first three quarters of 2020, the highest number of bankruptcies occurred to date. In the United States, 20% of bankruptcies are filed by college-educated people. In addition, 52% of bankruptcy filers are men. 

While some statistics are from irresponsible spending, many others are due to factors outside the control of an individual, such as medical debt. Did you know that 62% of US bankruptcies are due to medical expenses? A study by Harvard University shows that there is no doubt that the most important of all bankruptcy statistics in the United States is that medical expenses cause almost two-thirds of bankruptcies. One of the most interesting figures in this study is that 72% of bankruptcy filings come from people with some form of health insurance. While this is shocking, it also breaks the myth that medical expenses only affect the uninsured.

Circling back to reckless spending, a minuscule 5% of it accounts for bankruptcies in this country. Although this accounts for only a tiny percentage of individual insolvencies in the United States each year, it still puts more pressure on the system to strictly control the criteria for filing for bankruptcy. In other words, some Americans spend more than they can afford on purpose, purely to file for bankruptcy. This strategy eliminates some of their existing debts by allowing them to qualify for bankruptcy.

People or Companies? 

Of everyone who files for bankruptcy, 97% are individuals. This is shocking when you consider the widespread belief that most defaults can be chalked up to corporate mismanagement. According to company bankruptcy statistics, company bankruptcies accounted for only 3% of the total. Although it may seem shocking at first, when you consider the incredible amount of medical bankruptcies that happen every day, it isn’t surreal. 

If these statistics feel overwhelming, you aren’t alone. If you need financial advice or consulting for your situation, contact the professionals at Checkett, Pauly, Bay, and Morgan today.

Chapter 7 Bankruptcy Attorneys at Checkett, Pauly, Bay & Morgan

Talk to the bankruptcy attorneys at Checkett, Pauly, Bay & Morgan, LLC, about some tips to stave off Chapter 7 bankruptcy. Contact our law firm online or call (417) 358-4049 for more information.