Nobody wants to get into debt. When creditors come calling after your debts are due, you will be under high pressure looking for ways to repay. Most borrowers get credit knowing that they will repay in a good time. Sometimes, due to the economic downturn or other unfortunate events, one may fall behind in the repayments, or fail to repay altogether.
Debt pile-up can be a recipe for disaster. You might be forced to file for bankruptcy, and some of your assets might be liquidated to pay off debts. If you can’t seem to get out of debt, it is time to call a lawyer to get help.
Below are 6 ways in which lawyers can help you get out of debt.
1. A Lawyer Can File A Bankruptcy Case For You
With mounting debts, it is not long before creditors come looking for you. Some people may even hide to avoid the creditors and delay the debt collection process. When this happens, a creditor may forward your file to a collection agency that is tasked with looking for you and recovering the debt.
Debt collection agencies will use whatever measures necessary to ensure that you have repaid your debts. To avoid all this, experts from www.nylegalhelp.com advise you to look for a reputable lawyer that can help you file for bankruptcy. For your bankruptcy case, the lawyer will carefully assess your financial position, including all your assets and liabilities. The lawyer will then disclose all the legal options that you have under bankruptcy laws such as Chapter 7 and Chapter 13 and how you can use them to get out of debt.
When you hire a lawyer to file a bankruptcy case for you, you get to keep some of your assets, and you will also have an opportunity to get a court-backed debt repayment plan with no creditors circling every now and then.
2.A Lawyer Can Negotiate With Your Lenders
When individuals and businesses are unable to pay their debts, they may seek the services of a lawyer to speak to their creditors on their behalf. A debt settlement attorney assesses your financial standing, debts owed, your income, and your assets. The attorney is then able to correctly determine what you can pay. Armed with this information, the debt settlement lawyer can engage your creditors and negotiate for more favorable repayment terms.
Your lawyer can negotiate for an extended repayment period or even a lower amount you owe. The attorney will then draw a repayment plan based on the negotiation with the creditors. You will be required to follow the repayment plan, which can help you get out of debt more easily.
3.A Lawyer Can Help In Family Situations
When people fall into debt, the effects can be profound, and family members often suffer. Whenever you feel that your family stands to lose, it is best to hire a lawyer to help you out. If you have debts and going through a divorce, for instance, hiring a lawyer is a wise decision. The attorney will guide you on how to handle the debts and any commitments made will be binding.
Similarly, a lawyer can help you shield other family members such as children or your spouse from the effects of your debt settlement plan.
4.A Lawyer Can Prevent Your Property Being Seized
When your debts keep piling up and start getting choked, most creditors will be looking for assets that they can liquidate to recover the money they loaned you. The truth is most people have assets that they would never want to lose. Most people have painstakingly acquired their assets over a long time, and losing them breaks their hearts. This is why you need a lawyer to help you navigate the delicate matter of debt settlement. Even when you are threatened with foreclosure by your lender, your lawyer will step in to ensure that you retain your house. Similarly, when the creditors seek to repossess assets such as your car, art collection, or your prized electronic gadgets, your lawyer will use legal means to protect you and ensure that you retain your property. A lawyer can also prevent assets owned by your family members from being liquidated to settle your debt.
5.A Lawyer Can Sue On Your Behalf
If you feel that you are being unfairly targeted, or that the creditors have breached rules regarding your debt, you may hire a lawyer to sue on your behalf to avoid paying additional fees and penalties.
6.A Lawyer Can Collect Debts On Your Behalf
Sometimes people get into debt due to unpaid goods or services. If you had borrowed money to help you supply goods or services, you might get into debt if your clients fail to pay. If you exhaust all possible avenues to recover your money, you can hire a debt recovery lawyer to go after the clients.
It is advisable to avoid debt by all means, but if you are owed by creditors and cannot seem to find a way out, you will need an experienced lawyer to help you get out of debt.