Springfield Debtors Relief Lawyer

Between the pandemic, inflation, and an uneven economic recovery, many responsible people find themselves unable to keep up with their debts. If you are one of them, you might be enduring harassing phone calls and almost daily letters from creditors and collection agencies.

You might have seen debt relief agencies advertising on TV or found them after a Google search. Hopefully, you have figured out that these agencies take a substantial fee to make payment arrangements that leave you still drowning in debt.

There are legal means of securing debt relief that free you from harassment and the emotional burden of crushing debt without the need to declare bankruptcy. A Springfield debtors relief lawyer could defend you against collection actions and negotiate workable solutions to your money problems.

Debtors Relief Can Give You Breathing Room

Creditors expect payment in full and on time every month. When a debtor misses a payment or two, the creditor often sends letters demanding payment. If the debtor misses a few more payments, the original creditor often sells the debt to a collection agency for pennies on the dollar. The agency then adds interest and various fees while engaging in aggressive conduct to intimidate the debtor into paying.

In most cases, our skilled debtors relief attorneys in Springfield may be able to stop the harassment and negotiate a reduction of the debt. Many times, the agency is willing to settle for a small percentage of the debt owed to the original creditor. We conduct negotiations to settle debts owed to:

• Agricultural lenders
• Automobile financing companies
• Banks
• Collection agencies
• Credit card companies
• Education lenders
• Mortgagors
• Payday loan companies

We could also represent debtors in actions involving unscrupulous debt consolidation, credit repair, and debt relief companies.

Most creditors are open to negotiations once a legal professional can demonstrate a debtor’s inability to pay. They will often agree to accept half or less of the debt owing, might waive interest, penalties, and fees, and allow the debtor to pay in installments. The actual agreement depends on multiple factors including the debtor’s financial position, their total indebtedness, and the age of the debt.

Defending Creditor Lawsuits Prevents Default Judgments

Creditors sometimes sue a debtor. Their strategy is to get a default judgment, which allows them to garnish the debtor’s wages and attach their assets to satisfy the judgment.

Sadly, overwhelmed debtors can play into their hands by ignoring a summons or failing to respond promptly when served with legal papers. When a debtor immediately involves a Springfield attorney, our team could work to avoid a default judgement. Sometimes, we are able to find deficiencies in the creditor’s case that allow resolution of the matter with no payment from the debtor.

Even if a creditor has already obtained a default judgment, a lawyer could help. Missouri Supreme Court Rule 74.06 allows a judge to set aside a default judgment in some cases. A debtor must act quickly, however, because the court will only consider a motion that is brought within one year of the date the judgment was entered.

Working With An Attorney Protects You From Creditor Harassment

Debt collectors have a well-deserved reputation for shady tactics. They use harassment and intimidation to scare debtors into paying, sometimes persuading them to enter punishing agreements that keep the debtor paying for years.

Working with a Springfield attorney could relieve a debtor of the stress of dealing with creditors. Once the creditor is informed that a debtor has legal representation, the creditor may no longer contact the debtor directly.

In addition, federal law prohibits many of the practices disreputable collection agencies frequently employ. When a legal professional represents a debtor, they could hold the agency accountable and force them to abide by the law.