If you are stuck in debt and looking for debt relief, the first step is to select the best option. This selected option should also guarantee a beneficial future for you getting you out of the bad debt. So, there are two options only that will help you in a bad debt situation, the first one is debt settlement lawyers and the second one is Debt Settlement Company.
Read on to learn more about:
- Why it is better to hire a reputable attorney rather than a debt settlement company if you want help negotiating a debt settlement?
How Debt Settlement Companies Work
Most often debt settlement companies claim that they will be able to settle your debt after negotiating with a creditor or the debtor. But they also tell you that creditor won’t settle your debt unless you stop making payments. Usually, they tell their clients to make payments in the saving account because they save your money in a particular account to ensure that this money is enough to convince the creditor for the debt settlement agreement. This payment also covers other payments:
- Monthly fees charges of the company.
- The company may also charge a contingency fee, and
- Other fees, like a set-up fee.
Flaws in Debt Settlement Companies.
Some under quality companies can, not tell their clients the real procedures involved in Debt Settlement. Sometimes they might not mention that when you stop making payments, the total amount of debt will increase due addition of some fees and interest charges. Most of the companies don’t explain the risk of debt settlement to their clients. Why is this? Because these type of companies are for-profit companies they don’t care about your situation. They want to make money because it is their business.
Why Hiring a Debt Settlement Lawyer Might Be more Helpful.
When you are stuck in debt than you need a debt settlement but you have no idea that which one is helpful for you. Then hire a skilled attorney to settle your debt after negotiating with a creditor. He can also provide you legal advice after analyzing your situation. If a creditor files a lawsuit against you then he can defend your case in court. On the other hand debt settlement companies can’t do these things.
An attorney will provide you free legal advice in which he goes over all of your options. He can help you figure out if you really should try to settle your debt or you should choose some other options, like file for bankruptcy, for example. This is completely different than settlement it’s a legal procedure handle in court.
A debt settlement lawyer can defend you in court if creditor sue you to collect a debt. And if a creditor violates the law, “Fair Debt Collection Practices Act” than your attorney can also give legal advice to handle this situation.
Avoid Bad Lawyers
When you are looking for debt settlement lawyer you need to follow some point during selecting your lawyer.
- He must have licensed and more than 5 years of experience in that particular lawsuit.
- Beware he should not be an employee of a debt settlement company.
- It’s generally best to hire a local attorney whom you can meet with face to face, and
- You can schedule a meeting to sit down and speak directly to the attorney.
In the end debt settlement companies, often are not able to settle your debt with minimum owe. So select the best lawyer of your town to handle it or simply approach the creditor on your own.