Risks of Settling Debt Without a Lawyer’s Help
Are you struggling with past-due or delinquent debt and considering your options? One debt relief strategy that you may be considering is debt settlement. As you may already know, debt settlement involves negotiations with a creditor for the creditor to accept a lump-sum payment of an amount that is less than what the debtor owes. In exchange for the debtor making that lump-sum payment, the creditor agrees to forgive the remaining debt. Accordingly, the debtor can get out of debt by repaying an amount that is only a percentage of what they owe.
Debt settlement is often preferable to other debt relief options because it allows debtors to be free of their debt while having much less impact to a debtor’s credit than a bankruptcy filing. If you are considering debt settlement, you might be tempted to try to do it on your own. However, there are many risks associated with debt settlement in “do it yourself” cases. If you do not seek a lawyer’s help, the following are some risks to consider and reasons to hire an attorney to assist you.
Creditor May Not Agree to a Settlement
The biggest risk you take in trying to negotiate with a creditor on your own to reach a settlement agreement is that the creditor will not agree to settle the debt. Creditors can be less eager to negotiate directly with debtors, and your creditor simply may not be willing to settle the debt with terms that are agreeable to you.
You Do Not Have the Negotiating Experience of a Debt Settlement Lawyer and May End Up Agreeing to Pay More
Even if your creditor does agree to settle your debt, it is often the case that an attorney can negotiate a better settlement agreement than a debtor can on their own. In other words, if you do not work with a lawyer, you may end up paying more in your debt settlement agreement.
Creditor May Assess Fees That a Lawyer Could Avoid
Creditors may try to assess fees when negotiating directly with a debtor. Your debt settlement lawyer may be able to avoid any fees or added amounts in the settlement agreement they negotiate with your creditor.
You Could Unknowingly Restart the Clock on Old Debts
After a certain period of time, the statute of limitations prevents creditors or debt collectors from having a legal claim against debtors. In general, under Georgia law, the statute of limitations for most types of debt is six years. After that time window closes, you cannot be sued for a debt or debts you owe. However, if you enter into discussions with a creditor or debt collector in an attempt to settle newer debts, you could unknowingly restart the clock on those old debts again. By working with a lawyer, you will not be at risk of this.
You May Experience Unnecessary Stress
It is extremely stressful to negotiate with creditors. You can avoid that stress by having a debt settlement attorney negotiate on your behalf.
Contact a Lilburn Debt Settlement Lawyer for Assistance Today
Are you considering debt settlement? If so, it is crucial to have an experienced Georgia debt settlement attorney at Konn Law Firm LLC on your side. Contact our firm today to find out more about how we can help you with debt settlement negotiations and reach an agreement that can allow you to get out of debt.
Source:
law.justia.com/codes/georgia/2022/title-9/chapter-3/article-2/section-9-3-24/
