If you have a problem with credit card debt, knowing how to handle credit lawyers can save frustration and money. Obviously, you don’t need a lawyer to apply for a credit card or to make your monthly payments.
Problems arise when you are unable to pay your debt as agreed or can occur if the credit rating agencies have incorrect information in your credit file.
When to Hire a Credit Card Lawyer
There are three specific circumstances that may require you to use a credit card lawyer.
When you are unable to make payments on your debt and hope to negotiate better terms or extended payment schedules.
When you are unable to pay your obligations and must file for personal bankruptcy under Chapter 7 or Chapter 13.
When you are unable to correct misinformation in your credit file that results from incorrect reporting by a creditor or is the results of identity theft.
Using a Credit Card Lawyer for Debt Negotiation
There are non-profit counseling services that you might be able to use to negotiate better terms when you are crushed by a heavy debt load.
There are unfortunately many scams in this field, too, where companies will charge high up front fees and leave consumers in worse financial shape in the end.
If you have significant debt to negotiate it may be wise to hire an attorney who specializes in credit debt. This attorney can conduct negotiations with creditors on your behalf.
It’s often possible for a lawyer to accomplish a negotiated payment option or settlement that would be much better than what you can accomplish by working directly with your creditors.
When You File for Bankruptcy
Bankruptcy is a last ditch effort to deal with serious debt problems. If your debt load is from credit cards the Chapter 7 option might be the better choice for you.
Under Chapter 7 bankruptcy, your debts are totally erased. You no longer owe any balance on your credit cards as the debt is forgiven by the Bankruptcy Court.
A second option is Chapter 13 bankruptcy where you pay the debt off over time. You may pay the full amount but most often the amount paid is a negotiated settlement of an amount less than the full balance of your obligations.
In both bankruptcy options, you need the services of a credit card lawyer to wade through the paperwork and fulfill the legal requirements of filing for bankruptcy.
The lawyer will assemble your paperwork and be certain you have provided all necessary documents. He will file the application for bankruptcy and then will represent you when you go to court. He will also submit paperwork to your lenders after the court has granted the bankruptcy request.
Solving Credit Bureau Reporting Errors
The law allows consumers to correct misinformation in their credit files but credit reporting agencies are notoriously slow to respond to complaints of misinformation reported by consumers.
If you have been the victim of identity theft it is possible your credit file is total fiction. Identity theft can result in credit files filled with wrong information and keep you from buying a house or even renting an apartment.
Correcting the problems with the credit agencies is a long and tedious process when identity theft has occurred. A credit card lawyer can wade through the technicalities and has the knowledge of the law that helps correct problems in weeks that might take the consumer months of frustration to resolve.
If you are faced with a critical financial problem, knowing how to negotiate with credit lawyers can be of great benefit to you. The lawyer is on your side and is fighting the battle for you.
Respond quickly to the lawyer’s requests for documentation and paperwork and be totally honest with him about your financial problems.
This will allow him to help you in the most efficient way and you will reap the benefits. Keep in mind also that lawyer are also human beings which mean that you should never offend them on any way.