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11 Situations Where You Need A Lawyer (And 3 Where You Don’t!)

11 Situations Where You Need A Lawyer (And 3 Where You Don’t!)

A traffic ticket is a legal matter. So is armed robbery. Obviously, the “accused” in both of these instances have very different situations and only one will need a lawyer to hand their defense. In between these two extremes, however, are a myriad of legal matters which may or may not require legal representation. It’s a good idea to know in which instances you should get a lawyer — and the ones where you don’t need one.

Two Legal Categories – A Short Explanation

  1. Civil Law: This area of law covers all legal issues that do not involve criminal activity or breaking the law. Generally, one party sues another because they have been “wronged” in some way and want some type of compensation for that “wrong.” Civil law also covers legal agreements, real estate transactions, divorces, child custody, and other matters where legal paperwork is necessary to protect all parties involved.
  2. Criminal Law: This area of law relates to offenses that break the laws of a local, state, or federal governments. The prosecution is handled by lawyers employed by the governmental entity, and the defense is handled by either a publicly appointed defender or a private defense attorney whom the defendant pays. In criminal law, there are misdemeanors (small offenses) and felonies (more serious crimes).

If you find yourself facing the legal system for any reason, you should probably understand that the best policy is usually to at least consult with an attorney – an honest one will provide a free consultation. They will tell you whether you will need an attorney and will either take your case or point in the direction of a lawyer who can best represent you. If the attorney takes your case, the fee will be approximated up front. In general, however, the following guidelines apply:

When You Should Get Legal Advice

1. A Complex or Nasty Divorce

When couples mutually agree on all of the details of a split, there is no real need for a lawyer. When, however, there are issues of property, investments, savings, support, debt, and child custody arrangements, only a fool neglects getting legal representation. The terms of a finalized divorce are very binding, and they can only be changed by going back to court. All of this can be avoided with a good lawyer up front.

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2. A Wrongful Termination or Discrimination in the Workplace

There are both state and federal laws at play here, and the average person does not understand them. Only an attorney who specializes in this type of law is really qualified to carry your suit into court. You can be certain that the other side will have very solid legal representation. You should too.

3. Law Suits

If you are being sued and the consequences of a loss may result in the loss of a good deal of money or property, you need a lawyer. Again, the other side has a lawyer, so you need to get one too. Most of these things are settled out of court, but you want an experienced negotiator on your side.

4. A DUI 

Driving under the influence (DUI) has become a serious charge. Consequences can include fines, jail time, loss of license, or any combination of these three. A good lawyer can meet with the prosecutor and get the charges reduced, especially if this is your first offense. Never go to court on a DUI charge without a lawyer — unless you are willing to accept the maximum penalty.

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5. Drug Charges

Defendants who have personally hired attorneys always fare better than those who do not or those who take a public defender. Remember, a public defender is on case overload, and will usually recommend a plea bargain that will be worse than what a private attorney could get you. If you qualify financially for a public defender, still try to find a friend or relative willing to pony up the money for a lawyer.

6. A Car Accident with Injury

If you have been injured in an accident that was not your fault, the other guy’s insurance company will be all over you to settle your claim as quickly as possible. Don’t do it. In fact, never talk to an insurance company representative until you have first consulted a personal injury attorney. You may not be familiar with the laws or the normal compensation rates, but seasoned attorneys are. If you are injured in car accident, don’t talk to anyone except to answer cursory questions from the police on the scene.

7. Criminal Charges

Facing any criminal charge is scary, and you may not even know your rights as an accused person. Get a lawyer immediately for protection of your rights and so that you are defended as well as possible — guilty or not.

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8. Wills and Trusts

Save your family from disputes and legal issues after you die. Set up your will or trust with a reputable attorney well in advance. Your first will should be set up as soon as you have a child and should be changed periodically throughout your life as circumstances change.

9. Business Startups

Whether you are going it alone, have a partner, or are setting up a corporation, never try to navigate all of the legal requirements alone. You need to be lawful and you need to be protected. Only a lawyer who specializes in business law can ensure these things.

10. Denial of Workmen’s Comp or Disability Claim

It is often the policy of such institutions to deny a claim the first time around. This is because they know a certain percentage of people will simply accept that ruling and give up. Don’t be one of those people. Get a lawyer up front – they will take the fee out of the settlement, so there are no up-front costs.

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11. Bankruptcy

You can’t get one without a lawyer, and they will want payment up front.

When You Don’t Need a Lawyer

There are really very few legal situations in which you will not need a lawyer, but here are a few:

1. Small Claims Court

This court is reserved for civil disputes that do not involve large sums of money, the cap being determined by individual states. Normally, this is an informal procedure – both sides tell their stories and the judge decides.

2. Traffic Tickets

Pay the fine and get over it. The only exception to this general rule is if the ticket will put enough points on your license to cause a suspension or if the offense is serious enough that your insurance rates will skyrocket. In these situations, a lawyer can get the ticket reduced to a non-moving offense and the only consequence will be a fine. Yes, our legal system does respond to one’s ability to pay.

3. Lawsuits That You Do Not Want to Contest

If someone is suing you and you know in advance what they are asking for and are willing to pay the amount, you can simply plead no contest, appear in court without an attorney, or not appear at all. If you don’t appear, a summary judgment will be issued against you.

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Elena Prokopets

Elena is a passionate blogger who shares about lifestyle tips on Lifehack.

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Last Updated on June 1, 2020

How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide)

How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide)

Whether it’s consumer debt on credit cards, student loans[1], or a mortgage, most people find themselves weighed down by debt at some point in their lives. This can keep us working jobs we hate just to pay the bills and keep our heads above water. By learning how to pay off debt fast, you can release this burden and remove some of the stress from your life.

The Stack Method is one way to do this. Once you understand it, you too can learn how to pay off debt fast.

What Is the Stack Method?

The Stack Method, often referred to as “debt stacking,” requires making a list of all your sources of debt, starting with the debts that incur the highest interest. Then, you make the minimum payments for each source of debt, but when any extra money comes your way, you throw it at the debt at the top of the list. This way, you eliminate the debts with the most interest first, dropping extra costs to a manageable level in a fairly short amount of time.

To get started with the Stack Method, go through these steps and overcome those mountains of debt today.

1. Stop Creating New Debt

Most people do not receive training in handling money and how to live within their means. If you’re in debt, then you’re probably one of these people, and it’s time to bite the reality bullet.

It’s going to be impossible to get out of debt unless you retrain your financial habits right now.

You must make a stand against all the marketers trying to take your hard earned money or offering easy finance. You don’t need more stuff to make you happy. What you need is financial peace of mind.

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So cut up your credit cards or freeze them. I mean this literally. Put them in a container of water and stash them in your freezer. Then, when there’s an opportunity to spend, you have time to thaw out (you and the credit cards) and really decide if you need that purchase.

2. Rank Your Debt by Interest Rate

Make a list of all your debt with amounts and the interest rate. The highest interest rate should be at the top as this is what you’ll pay off first.

Paying off your high interest debt is the key to the Stack Method.

Interest is a powerful weapon, and right now the bank or other financial institutions are using it against you. Interest significantly increases the amount you need to pay back, and often we’re completely unaware of how much that is.

For example, if you have a $10,000 credit card debt at 20% interest where you pay a minimum payment of $200 a month, you will end up taking 9 years and 8 months to pay off the actual amount of $21,680 including $11,680 in interest!

3. Lower Your Interest Rates

You can often lower your credit card interest rates by doing a balance transfer. This means moving your credit card to another bank, where they will lower the interest rate to get your business[2].

Shop around and try to get the lowest interest rate for the longest duration (preferably until it’s paid off completely). Just make sure you’re reading the terms and conditions carefully so you don’t get stung by the new bank in other ways.

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Once you’ve done this, you can order your list of debt again if interest rates have shifted.

4. Create a Strategic Spending Plan

This is where we improve your financial control from Step 1. Take a piece of paper and write down your income after tax and all the expenses that you have. This will include the minimum payments on all your debt.

Look at your expenses, and then rank them in order of importance to you. Look at the items on the bottom of your list and decide whether you’d rather have them or be financially stable. The objective is to create a spending  plan where your expenses are lower than your income.

You also decide how much you are willing to spend on each area of your life. You can allocate amounts for rent, groceries, eating out, buying clothes, and other activities. However, realize that once you’ve spent your allocated money, there’s no dipping into other areas[3].

It also helps to have a “Fun Account” that you can spend on what you like, and an “Emergencies Account” in case your car breaks down or other unfortunate incidents come up.

You also want to include the extra amount you’re going to use to pay off debt in your spending plan.

Can you afford $20 a week? $50? $100? $200 or more? It’s important that you get a realistic number that you can commit to each week without fail, and this is your Stack Repayment.

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5. Create a Payment Schedule

The first part of the Stack Method is to cover the minimum payment on every single debt you have. Any time you miss a payment, you incur fees, and these add up quickly. This also includes making the minimum payment on the debt with the highest interest rate.

Then for the debt with the highest interest rate (your Target Debt), you’re going to add the Stack Repayment from your strategic spending plan. You apply this Stack Repayment and the minimum payment until that debt is paid off in full.

As your official minimum payment decreases, you add that extra amount to your Stack Repayment. So, as your minimum repayment drops, your Stack Repayment increases equally. This will compound how fast you pay off the Target Debt by adding even more to the payments you’re making.

6. Reward Your Progress

You want to track your Target Debt so you can see your progress along the way. You can also decide on milestones that you’re going to celebrate and reward yourself for.

A reward doesn’t have to cost money, but if it does then it comes from your previously allocated spending plan.

This is an important step as it will keep your motivation going when you feel your willpower fading.

Just like you’ve trained yourself to brush your teeth and shower, you can train yourself to manage your money. Feel great that you’re now entering the 10-20% of people who are actually responsible with money.

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7. Compound Your Results

Once you pay off your Target Debt, have a huge celebration and congratulate yourself. Then, you move the Stack Repayment (which includes the previous minimum payment now) to the next debt with the highest interest rate.

This becomes the new Target Debt, and you are using your Stack Repayment amount plus the minimum payment for the new debt.

This is why the Stack Method is so powerful. As you decrease a debt, you actually increase your Stack Repayment amount. This means the second debt will get paid off even faster, the third even faster than that, and so on and so on until you are completely debt free.

8. Be Kind to Yourself

During this process, your resolve is going to be tested multiple times. Maybe you’ll have an emergency like your car breaking down or the need to travel for a sick relative. The important thing is to not throw up your hands in despair and slipping back into your old habits.

Life will test your commitment to your new responsible money attitude, and it’s up to you how you respond. When things go wrong (and I guarantee they will), you need to shrug it off and get back on track.

Show compassion when you accidentally go over your target spending amount and decide to do better next week.

The Bottom Line

The Stack Method is a powerful tool, but it’s up to you whether you use it effectively. If you really want results, then bookmark this article immediately and start working through the steps.

It’s only by the decision you make right now that you will enjoy a debt-free future and live a financially responsible life.

More Tips on How to Pay off Debt Fast

Featured photo credit: NeONBRAND via unsplash.com

Reference

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