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Do I Need to Hire a Debt Settlement Lawyer?

Sarah Edwards | January 25, 2023

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Settling a debt on your own is possible.

Summary: It’s possible to settle your debt without hiring a lawyer, especially if you don’t have much debt, you can afford to pay some or all of the debt upfront, or you’re being sued and you want to resolve it before your court date. If your debt is large or attached to an asset, like your home, it may be in your best interest to hire a settlement lawyer. SoloSettle can also help you settle your debts on your own, once and for all.

If you’re facing a mountain of debt, you probably want to get rid of it — and the sooner, the better. Should you attempt to handle it independently or get assistance from a professional, like a debt settlement lawyer? Let SoloSuit explain when it’s time to get out the big guns and when it’s okay to handle the situation yourself.

If you need help settling a debt, SoloSettle is here for you.

You can manage your debt situation by yourself

It doesn’t make sense to work with a debt settlement attorney in every dispute with a creditor. In the following situations, it might be best to handle your debt without a lawyer:

You don’t have much debt

Some people don’t carry much debt. They may have a single credit card with a $500 balance. While they may not have the money to pay the credit card off today, they can probably come up with it over a few weeks.

You don’t need a debt settlement lawyer if this is your situation. You’d probably end up paying more for their help than you owe your creditor.

You forgot about a creditor, but you can afford to repay them

It’s not unusual to forget you borrowed money from a creditor. This situation might happen if you have multiple creditors or if you ask your lender to send you emailed statements rather than communication through the mail.

If you are suddenly faced with a debt you forgot about, explain the circumstances to the creditor. Set up your payment to get your account back on track, and ask if the creditor would be willing to remove any adverse information from your credit report. If the creditor sees the nonpayment was an honest mistake, they may be willing to meet your request.

You’re facing a lawsuit, but you intend to resolve it before your court date

A creditor might start a lawsuit against you when you stop making payments on a debt and don’t respond to theirits communication efforts. If you receive notice of a suit for a debt, you’ll want to take action quickly. You don’t want to end up with a judgment on your record.

If you're aware of the lawsuit but can repay the money before your court date, you don't need a debt settlement lawyer. Once you pay what you owe, the creditor will drop the case against you. Just make sure to get a copy of your payment receipt and a written statement indicating that it satisfies the obligation in full.

Settle your debt on your own with SoloSettle

SoloSettle, powered by SoloSuit, helps you take matters into your own hands and reach a debt settlement on your own.

SoloSettle’s tech-based approach to debt settlement sends and receives settlement offers on your behalf so you don’t have to deal with creditors or debt collectors directly. When you reach a debt settlement agreement, SoloSettle helps you manage the documentation of it and then transfers your settlement payment for you, keeping your financial information private and secure.

Here are some things that make SoloSettle different from other debt settlement services:

  • You can settle a debt of any size. Most debt settlement companies require that you have a debt of $15,000 or more to enroll.
  • You stay updated at each stage of the settlement negotiation process.
  • You don’t have to pay any fees until you have reached a settlement.
  • You have built in legal defense with Solosuit.

Plus, if you’ve been sued for debt, SoloSuit can help you fight your debt lawsuit while simultaneously working out a debt settlement. Best of all, you don’t have to pay a cent until you’ve actually settled your debt.

Let’s explore an example below.

Example: Laura is being sued by Midland Credit Management for her credit card debt of $10,000. She uses SoloSuit to respond to the case with a written Answer. This gives Laura time to consider debt settlement. After a close examination of her finances, Laura determines she can afford to pay off 60% of the debt right now. She uses SoloSettle to send a settlement offer, starting low at 30% so she has room to negotiate. After a few rounds of counteroffers, Midland Credit Management agrees to 55% of the debt amount, or $5,500. Laura saves thousands, gets her case dismissed, and moves on with her life with a fresh financial start.

Check out this video to learn more about how to settle a debt on your own:

Here are the signs you need help from a debt settlement lawyer

It can be tough to know when you need help from a debt settlement lawyer. After all, there are lots of free resources you can explore for debt settlement help. Why would you want to tack on the cost of legal assistance when you already owe too much?

If your debt situation is not too complicated, you might be able to DIY debt settlement. But in some cases, it’s best to get an attorney’s help. Here are a few situations when working with a debt settlement lawyer makes sense:

Your creditor sues you for a particularly large debt

It’s challenging to settle larger debts because you’ll need to come up with lots of money in a short period. Not many people can come up with thousands of dollars in just a few weeks. If you owe a creditor a significant amount of money, like more than $10,000, it’s wise to get professional help — especially if the creditor tries to sue you.

A debt settlement lawyer may be the best option if you’ve been sued for a large debt. Your lawyer can attempt to negotiate a payment plan on your behalf. They will also look for holes in your creditor’s lawsuit that could lead to a complete dismissal.

Your debt is attached to a significant asset, like your house

Some people take on large loans and use something they own as collateral, like their home or car. This scenario is particularly common with small business owners who need early funding for their endeavors.

However, it can be devastating if the debtor can no longer make regular payments. Their creditor can seize their most valuable possession.

Let’s consider another example.

Example: Ben borrows $50,000 from his local community bank to fund his new business. He uses his house to secure the loan. Ben’s business offers lawn services to home and business owners. He spends most of the money on equipment and payroll while he waits for orders to arrive. Unfortunately, Ben doesn’t get the orders he expects. Even worse, he can’t make his payments. The bank starts a lawsuit against him to seize his house. Ben decides to contact a debt settlement lawyer for help.

In Ben’s case, it’s wise to work with an attorney. He doesn’t want to risk losing his home due to missed payments. A lawyer can work directly with the bank to reach a favorable resolution.

Your situation is so bad you’re considering bankruptcy

Let’s be clear — you should avoid filing for bankruptcy if you can. Look at bankruptcy as a last resort. After all, bankruptcy has many repercussions and will adversely impact your ability to obtain credit or buy a home for up to 10 years.

Consider working with a debt counselor first. They might help you find ways to better manage your relationship with your creditors. You can also consider debt consolidation or borrowing money from family and friends.

Talk with a debt settlement attorney if you see no way out of your circumstances. They can help you settle your debts or assist you through bankruptcy.

Working with a debt settlement lawyer can be to your advantage, but it isn’t the only solution

Before asking a debt settlement lawyer for help, consider your situation. If your debt is relatively small or you can afford to pay it in a reasonable timeframe, working with an attorney probably won’t be worth it.

However, it’s smart to contact a debt settlement lawyer if your finances are dire. They can advise you on your specific case and help you recover from a tough spot.

If you’re facing a debt lawsuit, you can settle it quickly and easily with the help of SoloSuit.

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You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

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