I get asked the same question all the time.  If I am already deep in debt, how can I afford to pay an attorney to represent me in a debt settlement? It’s legitimate question with a pretty simple answer that will explain what is the cost for a lawyer for debt settlement.


How Can I Afford an Attorney’s Fees in a Debt Settlement?

I typically charge flat fees for my services that are calculated as a percentage of the debt you owe at the time you retain me. At the end of the day, my clients usually wind up paying a total of 50-60 cents on the dollar, all in, to settle their debt. This includes funds for settlement as well as payment of my debt settlement attorney fees. I never expect my clients to pay their fees all at once. Instead, I get them into a monthly payment plan that includes putting money aside on a monthly basis to settle their debts, as well as paying my attorney’s fees over time. Depending on the length of time a client is with me, my fees are usually paid out over 8-16 months.


More simply put, let’s say you have $10,000 in credit card debt. Depending on the credit card settlement amount, with fees included, you may wind up paying in $5,800 for attorney AND debt settlement fees. You end up saving $4,200 on the amount claimed due by your creditors.


What is the cost for a lawyer for debt settlement

And you don’t have to pay the debt settlement all at once.  Like my fees, each month you put money towards your debt settlement in a separate dedicated savings account. It is an FDIC insured savings account in your name. You just provide me access to the account for payment of settlements as I get them and my attorney’s fees. So for the $10,000 example above, you would be paying $483.33 per month for 12 months, which would cover settlement and payment of my debt attorney fees over time. Once you complete those payments and the settlement is paid, the debt is gone!


If the $483.33 payment is too high for you, then we can spread your payments out over a longer amount of time; therefore, reducing your monthly payment amount.  We will not get you into a plan that you cannot afford. 


Typically, we start off finding out what you can afford.  If you can only afford $200 month in overall payments, then we will do what we can make that happen.  We simply spread the debt settlement over a longer time frame.  Most important, even if your payments are stretched out over a longer period of time, once you retain an attorney, you can no longer be harassed by debt collectors. We send them letters of representation along with a power of attorney that prohibits them from contacting you by phone or mail. The debt collectors have to go through us. Working together we will help determine how you can pay the cost for a debt settlement lawyer so you can become debt free.


We are in the business of helping our clients reduce their debt.   We do not charge outrageous fees for the price of our help.  Read more about our debt relief services and client success stories on our website.


Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego, CA. For more information, please contact Daniel Gamez at 858-217-5051, daniel@gamezlawfirm.com or use our online contact form. Stay updated with the latest debt relief tips by following on Facebook and Twitter!