Hendersonville Debt Negotiation Lawyer

Debt Negotiation Attorney in Hendersonville, TN

A significant number of Americans are in debt, whether it be due to student loans, auto loans, or mortgage debt. Being in debt not only causes financial strain, but it can also put a strain on relationships and personal aspirations. If you are a Middle Tennessee resident facing serious debt, consider hiring a Hendersonville debt negotiation lawyer to help you with your case.

At Kerney Law Firm, we have over 20 years of experience helping clients resolve their financial issues. We strictly focus on bankruptcy, leading to a deep knowledge of what’s necessary to help our clients settle their debts and move forward with their lives.

What Does a Debt Negotiation Lawyer Do?

The most common types of debts consumers have are mortgage, credit card, student loans, healthcare bills, and auto loan debt. In Hendersonville, an area with significant population growth, mortgages contribute to the overall debt. Neighborhoods like Saundersville Station and Cumberland Hills are highly desired, and homes often come with large price tags.

While many people can pay off their debts without delinquency, sometimes external collectors take over debts. In these situations, a debt negotiation lawyer is invaluable.

A debt negotiation lawyer works on behalf of their client to reach a settlement that is favorable for them. Without the help of a capable debt negotiation lawyer, clients may end up in a deeper financial hole than where they began.

Finally, debt negotiation lawyers can help clients fight debt cases in court if necessary. For example, if a collector files a case against you for failure to pay a debt, your lawyer can represent you in the debt negotiation case.

Debt Negotiation Laws in Tennessee

In Tennessee, the debt collection industry is regulated by the Department of Commerce and Insurance. The goal is to ensure that consumers are treated fairly throughout the debt collection process. For example, it is a Class B misdemeanor for debt collection agencies to engage in unfair practices under Tenn. Code Ann. § 47-18-104.

Additionally, there are oversights to discourage debt management companies from charging high fees for their services. Under the Uniform Debt-Management Services Act, setup fees are capped at 4% of the client’s debt or $400, whichever comes first.

There are also regulations to cap the monthly fees that providers charge. This may make it more affordable to hire a debt negotiation attorney instead of paying the high amount of debt yourself.

While there are no criminal laws for failure to pay a debt, if a debt collector files a case against you, you must respond. Failure to engage with a court order can result in criminal charges.

Common Debt Negotiation Strategies

In 2023, the per capita household debt in Tennessee was $53,270. This is an increase from the previous year, but it is still lower than the national average. However, more of Tennessee residents’ debts are in collections compared to the national average.

The amount of debt in collection in Tennessee, 32% versus 26% for the rest of the United States, emphasizes the need for a skilled Hendersonville debt negotiation attorney.

Some common strategies debt negotiators employ to lead their clients toward financial freedom include:

• Arranging lump sum settlements. This strategy includes a fixed amount of money to pay off a debt instead of paying installments. The lump sum is typically less than the original debt and is affordable for the consumer. Your lawyer can help you set an amount and settle your debt without the hassle of continuous calls for collection.
• Installments. Another way to clear a debt is to pay monthly installments. Your lawyer can not only help you settle the debt, but they can also help you fill out paperwork to facilitate the process.
• Removing information from your credit report. Paying off your debt is only half the battle. Moving forward also requires deleting negative information from your credit report. Your lawyer can help you contact the original creditor to improve your credit report.

FAQs

How Much Do Debt Negotiators Cost?

The cost of debt negotiators varies depending on the firm as well as the amount of debt the consumer has. However, under the Uniform Debt-Management Services Act, debt management service providers cannot charge more than 4% of the debt or no more than $400 in setup fees. Therefore, it may be less costly to pay a debt negotiator than to be forced to pay off exorbitant debt or face delinquency.

How to Get a Debt Case Dismissed in Tennessee?

To get a debt case dismissed in Tennessee, you may want to consult with a debt negotiation lawyer. There are important dates to file an answer, such as 30 days after the notice of debt, and a statute of limitations of 3 years for medical debt, for example. Your lawyer can help you with the paperwork and other criteria necessary to get your case dismissed.

What Is a Reasonable Amount to Settle a Debt?

The reasonable amount to settle a debt varies depending on the consumer, how much they owe, their current financial situation, how long they have had the debt, and other factors. Some types of debt might be easier to settle than others. Your lawyer can help you negotiate a reasonable amount to settle a debt based on your specific situation.

Is It Better to Settle a Debt or Go to Court?

It is difficult to determine whether it is better to settle a debt or go to court. Generally, if your debt amount is low and you can pay a reasonably negotiated amount, it may be better to settle the debt. However, if there are errors in the debt collection, such as you not being the rightful owner of the debt, it may be better to go to court. Your lawyer can help you decide which option to take.

Hire a Debt Negotiation Lawyer

Being in debt can be overwhelming. It’s even more expensive if you do not have help. The last thing you want to do is spend money you don’t have to settle a debt. Luckily, Kerney Law Firm can help you negotiate your debts and help you move forward with your life. Contact us today for a consultation and to learn more about your options.

Hendersonville, TN Debt Negotiation Resources

• Debt Negotiation vs Debt Consolidation in Tennessee Explained