If you find yourself immersed in overwhelming debt with seemingly no relief in sight, it might be a prudent step to reach out to a consumer lawyer for assistance. One compelling reason to seek legal guidance is the potential harm mounting debt can inflict on your credit score. Various consumer laws are in place to shield individuals facing challenges in repaying debts or confronting undue pressure from creditors and collection agencies.
The Fair Debt Collection Practices Act (FDCPA)
A formidable shield for consumers against collection agencies, the Fair Debt Collection Practices Act (FDCPA) offers substantial protection. When incessant calls from collection agencies become a nuisance, you, or an attorney on your behalf, can dispatch a “cease and desist letter” to the agency. Following this, the agency’s communication is limited to an acknowledgment of the letter, with all further contact curtailed, except in cases of legal action. Should the agency disregard this directive and continue communication, you may be entitled to seek up to $1000.00 in statutory damages, along with legal fees. Moreover, the FDCPA holds collection agencies accountable for non-compliance in certain circumstances, such as failure to adhere to specific regulations for collection letters.
Challenging Adverse Credit Reporting
Should your credit report display detrimental entries from original creditors, debt buyers, or collection agencies, there exists a range of laws under which you can challenge these entries, seek removal, or pursue damages.
Bankruptcy as a Resolution
When other avenues seem unfeasible, filing for bankruptcy, typically under Chapter 7, emerges as a potential solution to address unsecured credit card debt and medical bills. Bankruptcy initiation activates an automatic stay, a legal provision that suspends most collection activities during the bankruptcy process. Furthermore, if engaged in litigation, such as an eviction case or debt collection lawsuit, the bankruptcy filing can halt proceedings in the respective court until further instruction from the bankruptcy court. Additionally, bankruptcy provides a recourse to halt foreclosure, garnishment, and other collection measures. In fact, individuals often resort to emergency bankruptcy filings right before a foreclosure sale.
Consideration of Costs
While grappling with existing debt, engaging a consumer lawyer might appear financially burdensome. Prior to hiring legal representation, it’s essential to comprehend the fee structure, including potential hourly rates or flat fees. These charges are contingent upon the lawyer’s expertise and familiarity with debt resolution strategies.
In Conclusion
Consumer lawyers play a pivotal role in helping you navigate and explore potential remedies for your financial predicaments. Should you encounter difficulties in locating a reputable consumer lawyer, Austin Lawyer Referral Service (LRS) is here to assist.
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.
