Some debt problems can be handled with some hardcore budgeting or special programs. But for the unlucky few, a letter from a creditor arrives with the news that a lawsuit is coming — and you’re its target. That calls for legal support — but when is hiring a lawyer the right next step? Let’s talk about it.
When You Might Need Legal Help
There are many reasons why you might wish to hire a lawyer to help resolve financial issues. But in three cases, you should start looking for one sooner, rather than later.
If You’re Being Sued
If you’ve received a court summons or lawsuit notice from a creditor or collector, don’t ignore it. You have a limited amount of time to respond. Missing your deadline can result in a judgment against you.
If You’re Facing Wage Garnishment
If money is being taken directly from your paycheck, or you’ve been notified that it will be, that usually means a creditor has already won a court judgment. A lawyer may be able to help you reduce the amount or stop wage garnishment altogether.
If You’ve Received Court Notices
Even if you haven’t been sued yet, other legal papers like court filings, liens or notices to appear should be taken seriously. These can be signs that a legal process has been kicked off, so retain representation as early as you can.
What Debt Attorneys Can — and Can’t — Do
Some attorneys specialize in legal issues related to consumer debt. They can respond to lawsuits on your behalf, help ward off attempts at wage garnishment, represent you in court and explain your legal options. They can also help if you’re considering bankruptcy, or if you think a debt is not actually yours. No matter how you slice it, a lawyer is a good investment to help protect yourself and your assets.
But lawyers aren’t magicians: They can’t make your debt disappear, promise a specific court result or stop collections without a valid legal reason or defense. A good lawyer will be honest about what’s possible. If someone promises a quick fix or asks for big upfront fees without explaining the process, you might want to shop around a bit more before deciding.
Legal Aid vs. Private Attorneys
What about the free legal resources out there?
Legal aid groups offer free or low-cost help to individuals who meet certain income or hardship qualifications. A legal aid group can typically help with things like debt lawsuits, evictions and wage garnishments. Legal aid opportunities vary by state, and online tools can help you locate an organization that serves your community.
However, free or low-cost legal aid is in high demand — and your case may not get the attention that a private attorney could provide. Complex cases may not be accepted into their aid program either, as their office may not have the ability to dedicate the necessary time and resources to one individual. So if you’re short on funds and have a simpler case, legal aid may be a good place to begin.
Private Attorneys
Private lawyers charge fees, but they may have more time or specialization than a legal aid office. If you have a complicated case, large amounts of debt, are facing an imminent lawsuit or don’t qualify for legal aid, then a private attorney is probably your best bet.
When searching for representation, refer to the American Bar Association’s listing of lawyers who practice in your state — and always ask for a written fee agreement before agreeing to work together.
What to Ask in Your First Meeting
Before hiring a lawyer, take notes and ask questions to make sure they’re a good fit. Ask if they’ve worked on cases similar to yours, and how those turned out. You want someone who understands the type of debt you’re dealing with.
Another good topic is outcomes. No one can promise results, but your lawyer should explain what’s likely and what might be possible. Clear expectations will help you keep your feet on the ground and understand what might be at risk.
And finally, ask how billing works. Some lawyers charge by the hour, others charge a flat fee. Always ask what’s included and if you’ll owe more later. Ensure you understand how they plan to communicate with you, how you can contact them and where to turn if they’re not available.
What if You Don’t Need a Lawyer After All?
Legal help is best for people facing court actions or wage garnishment. But if your biggest problem is juggling too many bills, debt consolidation may help you significantly reduce your monthly payments and get debt-free in as little as 24-48 months.