What is a Debt Relief Legal Clinic?
A Debt Relief Legal Clinic is a free financial counseling and legal clinic that aids individuals struggling with debt. These clinics provide advice and assistance in understanding options available to deal with debt-related stress. Debt relief legal clinics are often run on a volunteer basis by licensed attorneys, some with experience in bankruptcy law and others without. Nevertheless, the clinics are typically a great resource in obtaining a general understanding of present debt obligations and future obligations and the available options for debt relief .
Generally speaking, there are four principal options for dealing with debt that debt relief legal clinics provide initial information about: (1) debt settlement, (2) Chapter 7 bankruptcy, (3) Chapter 13 bankruptcy and (4) debt settlement. It should be noted that, while debt settlement and bankruptcy are formal debt relief options that require court involvement, the debt relief legal clinics do not involve the opportunity to formally retain a debt relief attorney and help in obtaining these forms of debt relief. Therefore, they can be very helpful in providing general information about what the processes entail and who to contact for help.
Debt Relief Legal Clinics: Services They Provide
Debt relief legal clinics offer a wide range of services that can help individuals to get back on their feet financially. Whether through counseling, debt negotiation, bankruptcy advice, or legal representation, the clinics aim to assist individuals in whichever way is needed and possible. With the help of volunteer attorneys, tenants’ advocates, and financial counselors, the clinics are able to help individuals deal with their financial issues quickly and effectively. Counseling is one of the primary financial services offered by legal clinics. Every person’s financial situation is very different, so the clinics provide detailed counseling services that include budgeting, credit information, and debt management. Information on bankruptcy, consumer issues, job readiness skills, and even housing programs is also provided to help educate individuals in financial need and give them the tools necessary to improve their situations. Another common service offered by debt relief legal clinics is debt negotiation. In this process, clinic attorneys work with creditors in order to secure lower payments and reduce or wipe out certain unsecured debts. This is not only effective in eliminating debts, but can help individuals work through their financial difficulties without resorting to filing for bankruptcy. For those individuals who need to file bankruptcy but would prefer to do their own filing, the clinics also provide help with Chapter 7 Bankruptcy and Chapter 13/11/12 bankruptcies. This includes free information and forms on how to file bankruptcy for those who are eligible to do so themselves. Legal representation is also offered for individuals seeking debt relief through bankruptcy. In addition to these common services, many legal clinics also offer clients information on local legal aid and law services, mortgage, and housing assistance, and financial literacy information. Some clinics also offer tenants’ advocacy, employment clinics, notary services, and universal pre-k applications, all of which are available through the clinic.
The Advantages of Using a Debt Relief Legal Clinic
There are countless advantages to seeking assistance from a debt relief legal clinic. Below are some of the most common:
Professional Guidance: When you consult an attorney at a debt relief legal clinic, you know that you’re receiving the most accurate advice possible. This is not something that you can get from your friend or family member who has gone through the process or a general Internet search. Attorneys who specialize in this field are aware of all the local, state and federal laws so they can assist you with the most accurate information.
Potential Savings: If you look up "local bankruptcy law firms" and see the large retainer fees that they may require to proceed with your case, you’ll likely be concerned. With the option of working with a debt relief legal clinic, however, it becomes possible to seek legal help without having to go through massive amounts of savings for retainer fees.
Higher Odds of Resolution: Again, if you follow the path of filing for bankruptcy without professional help, odds are that you’ll have trouble navigating the complexities and your case may be dismissed by the court. Alternatively, when you’re assisted by an attorney, your case has a much higher chance of resolution the first time around.
A Personalized Approach: What works for one person likely won’t work for you and your specific case. When attending the debt relief legal clinic, you’ll be able to ask questions and get answers specific for your case. That’s not something you’ll find online or from an inexperienced friend!
How to Select the Best Debt Relief Legal Clinic
When choosing a debt relief legal clinic, there are numerous factors to consider. Start with the clinic’s credentials – Are the attorneys experienced and do they have the necessary licenses? You’ll want to work with seasoned professionals who understand the latest legal trends and intricacies of debt foreclosure and bankruptcy.
It is also important to consider the clinic’s reputation. Look for reviews and testimonials on their website or third-party sites to get a better sense of their values and customer service. Existing clients’ experiences are often insightful.
The range of services offered at a debt relief legal clinic is another point to consider. A well-rounded, comprehensive clinic will provide a full suite of offerings such as credit counseling, bankruptcy information and other legal assistance. This is especially important if you need help in many different areas , such as debt relief or credit counseling and application of the law.
Finally, don’t underestimate the importance of making a personal connection with the attorney. You’ll be discussing sensitive financial and personal information, so an attorney-client relationship built on trust, compassion and familiarity is critical.
There are a few ways to research and evaluate clinics before deciding on one: first, reach out to the Better Business Bureau to review the clinic’s credibility; second, check online directories such as FindLaw.com to view peer recommendations; third, ask the clinic what kind of technology they use and how it impacts the case; and finally, ask for a list of expected fees and payment plans for your particular situation.
Taking the time to thoroughly investigate and evaluate prospective debt relief legal clinics will pay off in the long run, helping you make an informed decision that best fits your personal needs.
Myths About Debt Relief Legal Clinics
One of the common misperceptions debtors often have is that they cannot afford to hire a lawyer. This could not be further from the truth because your legal options should not depend on your income. There are debt relief legal clinics run by non-profit organizations where you can schedule free consultations with bankruptcy lawyers who have volunteered to help individuals and families who struggle in making ends meet.
The most popular myth out there is that debt relief clinics are too expensive. It only stands to reason that if you are struggling with your finances, to the point where you must file a case in order to get out from under your insurmountable debt, you would not have $500 to pay a lawyer, and my legal clinic will not cost you even a penny!
You would be surprised how many potential clients believe they could never qualify for bankruptcy, even with the recent changes in the law that allow some individuals and families to bypass the requirement of being eligible for a chapter 7 case. You would not believe how many believe they must make a minimum amount of money to file a case. Sorry to disappoint you, but you will find that your income qualifies you for bankruptcy purposes. Perhaps it is indeed too high to be able to qualify for a chapter 7 case, which is why you should prepared to file a chapter 13 case.
Perhaps your credit score is too low, you lament. Sorry to tell you, your credit score has absolutely nothing to do with your eligibility for bankruptcy. The worse your credit score is, the more likely you need to file a case. The fact that your score is so low is likely due to your income and/or ability to pay your debts, which is the primary test for financially qualifying for bankruptcy, as well as determining whether the court will accept your plan payment in a chapter 13 case. Either way, you most likely need the protection of the Bankruptcy Court to stop the collection efforts so you can catch up on your bills over time.
With that in mind, you need to understand that bankruptcy was designed to give a debtor a fresh start, not punish you because you cannot keep up. In fact, if you qualify to file a case in the Bankruptcy Court, then you will have options!
Debt Relief Legal Clinics Success Stories
Consider Sarah, a single mother of two young children. Incorporating her own home cleaning service, she took on many clients. It all became overwhelming, and unfortunately, it became the norm for Sarah to turn up late to her appointments and when she made it to the client’s home, not even show up with a proper solution. Her business began to suffer, and with it so did her finances. Luckily, she had taken on most of the work herself, so though she was behind on several bills and rent, a visit to a non-profit debt relief legal clinic made it possible for her to explain the situation and work out affordable payment plans that allowed her to keep paying her bills on time.
Then there is Tom, a contract worker who was wrongfully terminated for taking a leave of absence under the Family Medical Leave Act. When he attempted to recover lost wages and benefits via his employer, they refused to respond positively or at all . Luckily, Tom learned about the debt relief legal clinic in his neighborhood, where an attorney provided a pro bono review of the FMLA violation in his case and sent a demand letter to Tom’s employer on Tom’s behalf.
Neglecting to pay off his credit card debt after his mother’s passing, Anthony blamed himself for her sudden death; going into a deep depression, he threw off any notion of a normal life and stopped answering calls from his credit card company. Those calls never stopped, even after 18 months. They would call himself in Toronto, at work, on his cell phone, and even at his girlfriend’s house. After many failed attempts to contact Anthony, the collection agency sent Anthony a Notice of Lawsuit. After visiting the debt relief legal clinic at The University of Toronto, Anthony was able to reach a settlement with the law group on a payment plan that worked for him and married his girlfriend soon after.