How much does a debt settlement lawyer cost?
How much does a debt settlement lawyer cost?
$150 – $400 average cost per hour
$500 – $5,000+ average flat fee cost
Average debt settlement lawyer fees
Hiring a debt settlement lawyer costs $150 to $400 per hour or $500 to $5,000+, depending on their experience level and your individual case details. Some debt settlement attorneys charge 15% to 30% of your total debt instead of an hourly or flat rate.
| Fee type | Average cost |
|---|---|
| Hourly rate | $150 – $400 per hour |
| Flat fee | $500 – $5,000+ |
| Contingency fee | 15% – 30% |
Hourly rate
Many debt settlement lawyers charge an hourly fee of $150 to $400 per hour instead of a flat rate or percentage. Hourly fees are especially useful if you have a complicated case, or if the lawyer doesn't know how long it'll take to resolve.
Flat fee
Some debt settlement lawyers charge a flat fee of $500 to $5,000 or more. These are more common in straightforward cases where the attorney can easily estimate their time commitment accurately. A flat rate also provides more transparency and peace of mind.
Contingency fee
Debt settlement lawyers sometimes charge 15% to 30% of the total debt. Some lawyers charge based on a percentage of the money you'll save with a settlement instead of the total debt. In these cases, their fee depends on how well they're able to negotiate on your behalf.
What is a debt settlement lawyer?
A debt settlement lawyer is a lawyer that specializes in negotiating with creditors to reduce the amount of debt their clients owe. At the end of the process, the individual or business agrees to pay less than the full debt amount.
The attorney works on behalf of their client to create payment plans and can even help prevent stressful legal consequences like lawsuits, judgments, liens, or garnishments.
Debt settlement attorney cost factors
The following factors affect the cost of hiring a debt settlement lawyer:
Location: Debt attorneys cost more in areas with a higher cost of living, like California or New York, than in rural or suburban areas.
Experience: Knowledgeable attorneys with lots of experience charge more, especially if they have a solid reputation.
Case complexity: More complex cases cost more, especially if a creditor is suing you or obtained a judgment against you. Secured debt like mortgages or car loans are also more complicated.
Consultation: Some lawyers offer a free consultation, while others charge a fee for their time.
Bankruptcy: If your debt is unmanageable, your lawyer may recommend filing for bankruptcy instead of settling. A bankruptcy lawyer charges $600 to $4,000, depending on the type.
Debt settlement or credit counseling companies may charge less than attorneys, but they may not have the expertise to handle your claim. Consider getting a consultation to see if you need a lawyer before proceeding.
Other fees
Some lawyers charge extra or separate fees for the following:
Court costs
Paperwork filing fees
Summons fees
Travel expenses
Paralegal fees
Debt settlement attorney FAQs
What does a debt settlement lawyer do?
A debt settlement lawyer helps you by:
Negotiating with creditors to lower the debt amount
Negotiating the terms of the repayment plan
Protecting you from harassment and reducing stress
Communicating directly with creditors
Coming up with tailor-made strategies
Offering alternatives to bankruptcy
Should I hire a lawyer for debt settlement?
Hiring a lawyer to help with debt isn't always necessary, but you may want to consult with an attorney if any of the following apply to you:
You are unable to make payments on your debt.
A creditor is threatening to take you to court.
Debt collectors are harassing you.
Debt settlement lawyers have the knowledge and experience to communicate with creditors and negotiate on your behalf. They can significantly reduce your debt and relieve a lot of the pressure you may be experiencing.
Is hiring a debt settlement lawyer worth it?
Hiring a debt settlement lawyer may be worth it if you have a complex case or substantial debt. An attorney can save you more money in the settlement than they'll charge, and they'll also provide peace of mind and clarity during the process.
How to choose a debt settlement lawyer
Follow these important steps when looking for debt settlement attorneys near you:
Read reviews from previous clients on Lawful and Google.
Make sure the attorney has experience working on similar cases.
Pick someone with a transparent fee structure.
Get a contract in writing before they start.
Questions to ask a debt settlement lawyer
When looking for experienced legal representation, ask them these questions:
How long have you been practicing?
When did you pass the bar?
How much do you charge?
Would you use an hourly fee, a flat rate, or a percentage for this kind of case?
Will any other lawyers or paralegals need to help with my case?
How much can you negotiate this debt down?
Have you ever worked with this particular creditor?
Do you give free consultations? If not, how much do you charge?
How soon can you start working on my case?
How long should the negotiation process take?
Will I have to appear in court at all?
Can you give me a contract in writing?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.