How A Lawyer Can Help You Manage Your Debt

How A Lawyer Can Help You Manage Your Debt

The United States recorded a significant rise in consumer debt averaging from $11 trillion to about $14 trillion for ten years. The last decade registered close to 2 percent in debt rise, and the situation worsened when the COVID-19 pandemic struck as consumer debt shot to about 6 percent. To manage such rising debt levels, it’s expected that some persons will require a bit of help to manage their debts. One of the help in such a situation is getting a debt settlement lawyer who is an expert in assisting borrowers in managing their debts amicably. Some cases arise, and you might need to hire a debt management lawyer.

Sometimes one may confuse a debt lawyer and their bankruptcy attorney, but the two are different in their functions. A debt lawyer will find ways of assisting their clients in repaying their debts, and in most cases, they get involved in the management of a large number of obligations. Debt lawyers like Brian R. Cahn & Associates, LLC are experienced in arranging meetings and coming into an agreement between lenders and their creditors on the best payment plan they can adopt. A debtor who decides to engage a debt management lawyer will benefit in the following ways.

Benefits of Engaging a Debt Lawyer

One of the immediate benefits a debtor accrues upon engaging a debt lawyer is when a creditor decides to sue you to recover their accumulating debt. A debt lawyer brings both of you to the table and assists the parties involved in finding a solution to their predicament.

Secondly, some debtors decide to engage in dubious ways of recovering their debt, and harassing their clients is usually on top of the list. Creditors adopt the debt shaming model where they can’t stop calling your close relatives and your guarantors. Sometimes they are even abusive. A debt lawyer will be of much help in such a situation.

Lastly, a debt lawyer will be of much help when you have accumulated huge debts, and you are not sure of the best repayment approach, and at the same time, you want to maintain your good credit score. A debt lawyer assists clients in this situation and protects your properties and other items from being repossessed through a foreclosure agreement they enter with your creditor.

It is important to note that debt settlement lawyers are expensive to hire, and it’s essential to rethink your strategy of repaying before engaging one. In situations where you are not equipped to enter into negotiations, it’s prudent to engage such a lawyer.