Do I Need A Lawyer If I’m In Debt?

Hiring A Lawyer For Debt Problems

Debt, an unavoidable aspect of life, can be a daunting experience that can lead to a great deal of stress. When you find it challenging to keep up with your bills, it can feel like you’re in a never-ending cycle of anxiety. Collection agencies might start bombarding you with phone calls and letters, with lawyers even threatening legal action. The fear of losing everything can lead you to consider seeking legal help. But is hiring a lawyer the best course of action for someone in debt?

The Possibility of Lawyer-Free Solutions

In many instances, hiring a lawyer to deal with your debt problems might not be necessary. There are several other avenues you can explore to free yourself from the clutches of debt and prevent any further legal complications.

Consumer Proposals and Bankruptcies

These are two options regulated by the federal government to help individuals overcome their debt. They have the added advantage of halting all collection actions, wage garnishments, and asset seizures instituted against you. As long as you adhere to the terms set out by your Licensed Insolvency Trustee, no further action will be taken against you.

Role of a Licensed Insolvency Trustee

A Licensed Insolvency Trustee is a professional licensed and regulated by the federal government to ensure a fair balance between the rights of debtors and creditors as per the Bankruptcy and Insolvency Act of Canada. They are well-versed in the ins and outs of the process and can guide you from consultation to filing, administration, and the final discharge of your debts. If you fulfill all your responsibilities within the stipulated timeframe, you can complete the entire process without any court involvement.

Situations That May Require Legal Counsel

Though there are cases where you might not need a lawyer, there are specific scenarios where seeking legal counsel could be beneficial.

Disputing a Debt

If you disagree with the amount a creditor is attempting to collect, or believe there is no debt at all, you will need to prove your claim in court. This might necessitate the hiring of a lawyer to represent and defend your rights.

Filing a Counterclaim Against a Creditor

If you believe your creditor has violated your debt agreement, broken the law, or caused damage to you in any way, you might need to take legal action against the creditor. In this case, a lawyer can help present your case effectively.

Legal Action Against a Third Party

If a business or individual has caused you damage (for instance, a car accident), and the proceeds could help you pay off your debt, you might want to hire a lawyer. They can ensure your claim is heard and that you receive your entitled legal remedy.

The Role of Bankruptcy Lawyers

Bankruptcy lawyers are rarely involved in consumer debt cases, as their practice primarily handles complex corporate matters. However, if a creditor moves to have an involuntary bankruptcy order placed against you, seeking legal counsel could become necessary. If you choose to accept the order, a Licensed Insolvency Trustee can handle the process. But if you decide to contest it, you will need someone well-versed in bankruptcy and insolvency law to represent you.

Free Confidential Consultation

A Licensed Insolvency Trustee offers a free confidential consultation to assess your financial situation and guide you on the best options. Whether a bankruptcy, consumer proposal, or legal assistance would be most beneficial, they can help you find relief. If you’re in a financial bind and unsure of the next step, seeking their advice can save you from unnecessary legal fees and worsening your financial situation.

With the right information and guidance, dealing with debt can be less daunting. Whether you decide to hire a lawyer or not, it’s important to explore all your options before making a decision. Remember, taking control of your financial future is the first step towards financial freedom.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.