If you are deep in debt and fielding multiple phone calls from your debtors or want to declare bankruptcy, you may not know where to begin. Restructuring your debt can be a puzzling process; however, hiring a debt collection lawyer may help you choose the best path for your financial situation. As you speak to a lawyer during your initial consultation, there are a few questions you may want to ask so you are prepared to face the future with greater confidence.
- Can You Stop Collection Phone Calls?
When you fall behind in your credit card or car payments and are unable to catch up, you may start to receive daily phone calls from debt collectors. These calls can be nerve-wracking and cause serious stress, making your financial life even more difficult. A debt collection lawyer may be able to stop these calls or field them on your behalf once he or she is officially representing your interests. You may want to let your debtors know about this change as in most cases, they can no longer contact you if you retain a lawyer.
- Can You Lower My Payments?
Every debt collection case is different, but in most scenarios, your attorney may be able to negotiate a payback amount that is lower than what you currently owe. Whether this is possible may depend on the number of accounts you have open and that are delinquent, how much time has passed in delinquency, and the rules and regulations of the companies you owe.
- What If My Debtors Want to Sue?
If one or more of your debtors has threatened to sue you over the amount you owe, a debt collection attorney can represent you in court or arbitration, help create a repayment plan and may even prevent a court case by negotiating with collection companies directly. A court case can be time-consuming and costly, even for a large corporation like a credit card company, and some may opt for a repayment deal instead.
- Is Bankruptcy an Option?
Declaring bankruptcy can put a temporary stop on harassing phone calls and letters; however, choosing this option also means having to attend bankruptcy court. An attorney may be able to assist you with choosing which type of bankruptcy is best for your situation or if there is a better solution to your financial problems.
When your financial life is turned upside down due to a job loss or other loss of income, dealing with debt collectors can be overwhelming.