When to Hire a Lawyer for Debt Settlement

When dealing with debt, you may feel overwhelmed. If you can’t pay your debts, it is difficult to know what options you have. Debt settlement and bankruptcy are always options when it comes to settling high debts. The question most have, however, is do you need an attorney for debt settlement. Here are a few instances where you should hire a lawyer.

You Have Garnished Wages

Often, you want to act before your wages are being garnished. If there is any threat that you may have your wages garnished, then you need to act right away. This can happen because of back taxes and it can also happen if you are delinquent on your loans. Whatever the case, you need to speak with a lawyer before you end up with your wages garnished. The attorney can not only give you advice, but he or she can step in and help find a solution to your situation.

You Face Lawsuits From Creditors

When debts go unpaid, creditors may file a lawsuit against you. When this happens, it does not make it any easier for you to pay your debts. Your best course of action is to talk with a lawyer as soon as possible. Whenever you have a risk of a judgment against you, you should have a lawyer there to defend you and to guide you through the next steps.

You have Substantial Debts

Some debts are manageable. If you have a manageable amount of debt, then you can always talk to the creditor and try to negotiate a repayment plan or work on a settlement with the creditor personally. Sometimes, creditors are willing to work with you if you are having trouble paying your monthly payments. Now, if you are dealing with more substantial debts, you may want to hire a lawyer and consider your options when it comes to bankruptcy.

For instance, if your debts amount to more than half of your income, this is a serious issue. If you feel as though you are never going to get out from under your debt, then you need to act and find a lawyer that can represent you.

If you are in a serious amount of debt, it may be time to talk with a bankruptcy lawyer. To settle your debts with creditors is not always an easy process. This is especially true if you are in too much debt. Consult with a bankruptcy lawyer, like a bankruptcy lawyer in Melbourne, Florida, for the best advice regarding debt settlement.



Thank you to the experts at Arcadier, Biggie & Wood, PLLC, for their insight into chapter 13 and the law.