If you find yourself drowning in debt with no relief in sight, it may be time to seek assistance from a consumer lawyer. Mounting debt can severely damage your credit score, making it crucial to address the situation promptly. Fortunately, various consumer laws exist to protect individuals facing financial hardship and harassment from creditors or collection agencies.
Fair Debt Collection Practices Act (FDCPA)
The FDCPA offers robust protection to consumers, particularly against collection agencies. If you’re inundated with incessant calls from collection agencies, you or your attorney can issue a “cease and desist letter,” compelling them to halt further communication, aside from potential legal actions. Failure to comply may result in statutory damages of up to $1000, plus attorneys’ fees. Moreover, collection agencies may be held liable for non-compliance with FDCPA regulations, including improper collection letters.
Credit Reporting Challenges
If your credit report reflects adverse information from original creditors, debt buyers, or collection agencies, various laws provide avenues to challenge the accuracy of such reporting or seek removal and damages.
Bankruptcy
As a last resort for debt-related issues, filing for bankruptcy, typically Chapter 7, offers relief from unsecured debts like credit card balances and medical bills. Bankruptcy triggers an automatic stay, halting most collection activities during the bankruptcy process. It also puts a temporary hold on pending lawsuits, such as eviction proceedings or debt collection suits. Additionally, bankruptcy can prevent foreclosure, wage garnishment, and other collection actions, with some individuals resorting to emergency bankruptcy filings to halt imminent foreclosure sales.
Considerations Regarding Costs
Hiring a consumer lawyer may seem daunting, especially when finances are already strained. Before engaging their services, clarify their fee structure, whether it’s a flat fee or hourly rate, to better understand the potential costs involved. This allows you to plan accordingly and mitigate any further financial strain. Ultimately, investing in legal assistance can offer invaluable support in navigating complex debt issues and safeguarding your rights as a consumer.
Contact the Lawyer Referral Service of Central Texas Today For Help Finding a Qualified Lawyer Who is Right for You.
Since 1966, we have helped hundreds of thousands of Austin and Central Texas residents and businesses find the right lawyer to work tirelessly on their behalf and get the results they deserve.
Get an instant referral online, 24/7 or call the Lawyer Referral Service during regular business hours (8:00 AM to 4:30 PM) at (512) 472-8303. We want to help.
