Debts management is a very complex subject and when legal obligations are attached with it then it becomes all the more complicated and hard to handle, especially if you have very little or no knowledge about the legal aspects of debt consolidation. It goes without saying that you will need to prepare yourself well if you want to deal with your debts, single or multiple, in a legal way.
Before you take on, you will need to prepare yourself to build a strong foundation for proper defense. Proper preparation will enable you to understand the case, its winning chances as well as what to expect from it in the end.
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Steps to follow
There are a few specific steps to follow to prepare yourself for the legal proceedings to deal with your debt.
To begin with, you must gather all paperwork that is related to your debts. These documents include:
- A log of contacts if you are contacted by the creditors or your creditors along with the date and time of contact, in person or over the phone
- All correspondences including mail and email that you may have received or sent to the creditors or collectors and
- Any other relevant or related document of the debt collection process.
The next important step is to contact a debt consolidation attorney to go over your case and hire their service. It is very important to approach with an experienced lawyer in such conditions. Even if you think that you do not have any ground to defend yourself in such a situation, the professional attorney will be familiar with the collection and debt settlement process and laws that govern these.
They will not miss out on anything that you may have and will often succeed in winning the verdict in your favor or a settlement negotiation that is most favorable to you. It is important that you hire an attorney especially if you suspect that a suit may be filed or you are sued by the creditors already.
Choosing the right lawyer
You can choose the attorney referred by your friends and family members or get some referrals and advice from the National Association of Consumer Attorneys website as well.
Picking the right lawyer is the most important thing to do and is the next important step in your preparation. Make sure that even if you get personal referrals or a lawyer or a non-profit debt counseling agency you do some research yourself. While doing make sure that you check a few specific things such as:
- The history of the attorney
- The success rate
- The license that must be in good standing.
You will get this information through online searches and even through several government sources.
While you meet the attorney in person for the preliminary meeting find out how well you and the lawyer mesh. You can do this by asking a few candid questions regarding the background of the lawyer in debt collection litigation.
- It is important to know who you choose because often debt settlement companies will lure you through advertising and posing as legal firms and advocates but in reality does not provide any such legal service.
- Moreover, a few such companies may even use lawyers as fronts to get more business. Once they do, you will never see any such lawyer and in the end you will have to deal with the debt settlor who will be more interested in fulfilling his desire than yours, often leaving you back in the same dreadful financial condition.
Therefore, first make sure that the person you meet or want to hire will provide you with the legal help and not insist on settlement or any other processes that you will easily find yourself if you visit sites such as nationaldebtreliefprograms.com.
Have a thorough interview
When you meet the debt consolidation attorney you must interview the attorney just as your attorney will interview you. In most of the cases it is found that several successful debt defense cases arise from defilements of consumer protection laws and your attorney will often ask you different questions to find out whether or not there was any in your case to formulate a defense strategy.
While answering such questions the records that you may have kept will help you in a great way. Your answers will determine the prospects of your case and in turn it will determine how the debt attorney will charge you for the services provided from the following option:
- At an hourly basis if you are the defendant and have low chance of winning the trial
- At contingency fee basis if the debt is of sizable amount and have lots of prospects of winning and
- At a flat rate if the case is simple enough.
However, if the case is simple and do not have any chances of lawsuits in plain view, you may also contact a debt counselor to seek advice.
People who seek help from a lawyer
No all people will need a debt attorney to get their issues resolved in a legal way. Usually people who will need such help include:
- Those filing cases against debt collectors for the violation of consumer law in any form of unfair trade and credit practices
- Those who want to negotiate deals with their creditors
- Those want lawyers to handle lawsuits against credit card companies or other lenders
- Whose finances are beyond repair
- Those who want to file for bankruptcy.
In fact, a debt attorney is the best resource to understand your rights, provide tips and advice to escape illegal tactics and harassments. They are your best representative and guide should your case moves on to court. You will be treated in the court with due respect when a lawyer is by your side who have enough experience to make compelling arguments to his counterpart or to the judge.
These debt attorneys can also help you in situations when you need to file Chapter 7 or Chapter 13 bankruptcy through the entire process with their experience.