Negotiating With Creditors? 3 Things To Know

Law Blog

If you are in a significant amount of debt that you are struggling to pay off, it can be challenging to deal with your creditors. If you feel overwhelmed by what you owe, there are a few different options. While bankruptcy is the best bet for some people, it may not be the right option for you. Bankruptcy also impacts your finances for years. Another option is negotiating with your creditors and consolidating your debt to make it easier to pay down. Here are three things that you should know when dealing with your creditors and consolidating debt.

An Attorney Can Help

Tackling negotiations with your creditors on your own can be difficult. Depending on your situation, you may want to hire outside help to get the outcome you desire. Hiring a debt consolidation attorney is an excellent option if you are looking to reach a deal with your creditors. An attorney will negotiate on your behalf to get your debt into a more manageable state. If you require the services of a debt consolidation attorney, make sure you shop around and look into a few different ones before making a decision. 

How Much An Attorney Will Cost

How much a debt consolidation attorney costs will depend on the amount of debt you owe, the difficulty of the negotiations, and whether or not your creditors are in the process of suing. If there is a judgment against you or if your creditors are in the process of suing, your attorney fees will be higher. Fees range anywhere from $500 for simple cases to upwards of $5,000 for more complex situations. 

Debt Consolidation Can Take Time

While there are plenty of benefits to debt consolidation, like allowing you to avoid bankruptcy, it also takes time. Even when you hire an attorney, debt negotiations can take time, and it may be two to four years before there is a settlement. If you are negotiating with your creditors, patience is a necessity. There are also other ramifications from debt consolidation and settlements. Any debt that is forgiven may be taxable. A debt consolidation attorney will let you know what to expect during and after this process.

If you are negotiating with your creditors, there are a few things to know. First, hiring a debt consolidation attorney may be in your best interest. An attorney will do the work of negotiating for you and will likely get you a better outcome. However, their services do come at a price. You'll pay anywhere from a few hundred dollars to a few thousand dollars for the services of an attorney. The negotiating and consolidation process also takes time, even when you hire an attorney. 

To learn more, contact a resource like Brian R. Cahn & Associates, LLC.


29 January 2021

How to Gain Guardianship Over a Child

The laws governing child custody and guardianship can be confusing. As a family attorney, I have helped many clients gain legal guardianship over a foster child or a relative's child. Getting legal guardianship of a child you are caring for is important because you need to be able to make decisions about that child's education, health care and other matters. This blog will help you navigate the world of legal guardianship and show you how to take steps to get guardianship over a child whether the child's parents are cooperative or not. Legal guardianship does matter even if a child is not going to be adopted. I hope to help people find the way to get this done.