According to the law, you can consolidate your multiple debts into one single loan at a lower interest to repay the others. This will allow you to have only a single but larger loan against your name. However, the lower rate of interest will ease up things a bit as you will have to make lower monthly payments. You can opt for this process by approaching a bank directly or take help of professional experts such as a debt consolidation agency or a lawyer for that matter.
There may be times when you will need the help of a debt consolidation lawyer. If you have too many unsecured debts in the form of multiple credit cards or any other having high interest rates, a debt consolidation lawyer may ease up the stress and also guide you through the entire process through his or her expertise.
The lawyer will be able to save a considerable amount in interest as they know every nuance of debt consolidation law and also simplify your payments at the same time. Apart from that, the lawyer will also help you in several other ways such as:
- Advising you on the feasibility of taking on a debt consolidation loan considering your particular debt situation
- Presenting you with various alternative options and
- Urging you to contact a bankruptcy lawyer instead for assistance if need be.
You may also need a debt consolidation lawyer to get enough help to navigate easily through the complex legal system involved in it. Remember, the debt consolidation reviews will tell you only about what debt consolidations is, the pros and cons of it and its working process but will seldom focus on the legal aspects that is as difficult as managing a debt situation.
The experienced lawyer will help you to successfully overcome any legal obstacle that you may face in due course of time due to the looming debt. Most importantly, a debt consolidation lawyer can help you in determining the best path to follow so that you can resolve the debt issues easily, effectively and comprehensively.
Things to expect
Apart from the benefits of hiring a debt consolidation lawyer, there are lots of diverse things that you may expect as well in the process. A few of these factors to consider are:
- The fees: Hiring a debt consolidation lawyer can be expensive and therefore it is advised that you talk about the fees early on if you decide to hire one. Lawyers may charge you at an hourly rate. They may also charge a contingency fee which is a fixed percentage of the amount you may win in a lawsuit. On the other hand, there may be a few instances where the lawyer may charge you a flat fee especially for the simple cases and if you are the defendant in debt litigation or there is a very low possibility that you will gain anything even if you win.
- Case handling: Before you finalize on hiring a specific debt consolidation attorney try to get a fair idea on how your specific case will be handled. Also inquire about the time it will take to get the desired verdict.
- Case foundation: Before you step on the gear you must know how strong your case is and how high the chances of winning are. If it is small then it will be utterly unwise for you to add and take on the mounting expenses of legal defense. This will make your financial condition even worse.
Therefore, hiring a debt consolidation lawyer is only feasible when you have a fairly large and complex debt issue as that will balance the cost of it making it worthy. However, you can also hire a lawyer if you feel that you are not confident to deal with the issue on your own or you do not have enough grounds to defend yourself and there is a high chance of countersuing.
Know the other alternatives
If you have very little knowledge about the other alternatives to a debt consolidation loan to deal with your multiple debts, you can take help of an experienced debt consolidation lawyer as well.
Debt settlement negotiation:
- The lawyer may suggest you to pursue debt negotiation to settle your debt. In this process you will stop making the monthly payments to the creditors. You will also have to save up money for several months to pay off the debt in a lump sum.
- This will need a change in your spending habits, proper budgeting, curbing your unnecessary expenses and creating a dedicated savings account.
- The actual negotiation with your creditors is conducted by the attorney and in most of the times they will be successful to make them accept a lump sum payment that may be 40% to 60% less than the actual amount that you owe.
Chapter 13 bankruptcy:
This is another process that the lawyer may suggest you to opt for. This process is much similar to debt consolidation but is governed by the bankruptcy court. There are a few specific features in Chapter 13 bankruptcy that makes it different from others. These are:
- There will be a new agreement regarding you debts and new plan will be designed to pay off all of your debts.
- A specific period of three to five year may be fixed as well to make the complete payment.
- You will make one payment each month to the bankruptcy trustee.
- The trustee will divide the amount between your creditors.
- When you make the payments the creditors may not sue you.
- You will not have to pay any penalties or interest on your unsecured debt which is another significant and advantageous feature of Chapter 13 bankruptcy.
In the end of the new payment plan if there is any unsecured debt remaining it will be discharged by the bankruptcy court.
Therefore, a lawyer will help you in a great way to have your entire debt situation resolved this way. Just make sure you hire the best lawyer after proper research and follow their instructions to the last word.