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