Debt Settlement Attorney
Attempting to negotiate credit card debt settlement yourself can be too arduous for many people, in which case you may seek a professional debt settlement attorney to handle the negotiations for you. Depending on your aptitude, getting professional help is definitely a viable option that can help you tremendously. Before you can decide whether to hire an attorney for debt settlement, you should understand what services are offered, the benefits, drawbacks, and finally how to find the right one.
What they offer:
Debt settlement attorneys will help you reach an agreement with your creditors to pay less than what is owed. They will take care of the same tedious work required for settling debt in the do-it-yourself method. This includes corresponding with your creditors to reduce balances, waive late (sometimes bogus) fees, and to arrange a payment plan. In addition, they will also negotiate on your behalf for less adverse listings on the credit report and remove any inaccurate items.
Benefits of a debt settlement attorney over doing it yourself or debt settlement companies:
- They have the experience and legal expertise to deal with the collection agencies. It is extremely valuable to have, on your side, someone fluent in negotiations that is fully aware of your legal rights and protections.
- They have established relationship with your creditors and know who to speak to. Being accessible to key personnel who have the authority to make decisions is crucial to the chances of settling the debt. The more trust you have with those key contacts the better the settlement you can attain.
- A debt settlement attorney eliminates you from emotional strain of corresponding directly with creditors. No more harassing phone calls as they have the legal authority to demand all contacts from collection agencies to be redirected to them. It simply makes your life easier so you don’t need to worry about any mistakes due to overwhelming information.
- It reduces the likelihood of a lawsuit in case a settlement cannot be reached. Usually the creditors will be more agreeable to negotiating with professional attorneys who are familiar the the proceedings and it usually gets settled out of court.
- They are usually more qualified than debt settlement companies while having a less complicated fee structure (usually some percentage of the settlement). Also, despite what they say, these companies cannot stop the collection calls from going through.
- They are less susceptible to scams compared to debt settlement companies, many of which operate illegally in states that do not allow such companies to be for-profit.
Drawbacks:
- The same risks associated with debt settlement applies here as well. The main one being the damage afflicted to your credit rating.
- If you are knowledgeable of negotiations and able to endure the ordeals of the process, you can save the fees for their services.
How to find a good debt settlement attorney:
Try asking people who you trust first. The ones who have been verified as legitimate, competent, and affordable by someone you know is usually your best bet. You can also try looking up advertisement in newspapers or a phone book. Check the services provided cover what you will need. Once you make a shortlist, ask for free consultations from each of them as well as references from their clients. This should help you to compare their strategies and the level of satisfaction from past feedback.