Hiring a lawyer to settle the case is a valid option. The objective here is to resolve the case and to get the best deal possible, including getting rid of any credit reporting by the debt collector who sued you.
By way of reminder, the five options you have when sued by a debt buyer (such as LVNV, Midland, Portfolio, etc) are:
1. Bankruptcy 2. Fight the case on your own 3. Settle the case on your own 4. Hire a lawyer to fight the case 5. Hire a lawyer to settle the case
Each option has advantages and disadvantages (particularly bankruptcy which we rarely recommend).
When looking at hiring a lawyer to settle the case, you need to know what amount will it cost you (if anything) to pay the collector and how much the lawyer fee will be. Also, what else will you receive in the deal? Will you get credit reporting deleted? Will a 1099 be issued for “debt forgiveness?”
The lawyer may also file an answer for you — you need to verify exactly what you are hiring the lawyer to do for you and what will happen if the lawyer can’t get the case settled.
We’ll be glad to help you think through your options and figure out which option is best for you.
If you have questions about your options when sued in Alabama, please feel free to get in touch with us by calling us at 205-879-2447 or contacting us through our website AlabamaConsumer.com.
John G. Watts Watts & Herring, LLC Birmingham, Alabama