Debt Settlement Attorney
How Can a Debt Settlement Attorney Help You?
If you are drowning in debt or receiving calls on a daily basis from debt collectors, attempting to settle your debt might be your best option. Though it’s possible to attempt debt settlement on your own, for many people, the best option is to work with a debt settlement attorney. He or she has experience working with debt collectors and will ensure your rights are protected.
What do you need to know about working with a debt settlement attorney?
Debt settlement attorneys negotiate on your behalf with your lenders concerning your debt. The goal is to reduce the amount you owe. In some cases, debt settlement attorneys are able to negotiate a payment of pennies on the dollar of the original debt.
People who have a large amount of debt and lack the resources to repay that debt benefit the most from debt settlement.
Some people contact a debt settlement attorney after working with a non-profit consumer credit counseling agency and realizing their budget isn’t enough to pay off debt.
What Does a Debt Settlement Attorney Do?
First they make all the collection calls stop. Once you hire a debt settlement attorney creditors are barred from contacting you about the debt. Debt settlement attorneys also work with creditors and debt collection agencies to reduce the amount of money you have to pay on an unsecured debt. Lenders who have granted unsecured credit know they are at risk for receiving nothing if someone files for bankruptcy. This is why some of them sell the debt – to ensure they at least receive some of the money they lent you.
A debt settlement attorney works on your behalf to settle your debt for less than the original amount. It’s possible to do this on your own, but most people don’t have a full understanding of how debt and debt buying work.
Furthermore, settlement attorneys understand the laws associated with debt and debt collection lawsuits and are able to assist you if and when a debt collector violates these laws. Many collection agencies demand payment on the debt without even giving you anything in writing. At Weston Legal we never allow our clients to pay a dime until there is a written agreement.
What are the Benefits of Debt Settlement?
Settling a debt can be beneficial in a variety of ways. There are also a few negative factors involved. Before agreeing to debt settlement, make sure your attorney explains all of the pros and cons.
- First and foremost, debt settlement allows you to pay a reduced amount of what you owe on a debt. Creditors and debt collectors are hedging their bets by settling and receiving at least some of what you owe, instead of taking a gamble for all of the money and receiving nothing.
- Debt settlement can give you more time to pay a debt. In some arrangements, if you’re attorney is unable to arrange a lump sum payment, you’ll be able to pay back a debt over the course of several months or a couple of years.
- Working with a debt settlement attorney provides you the protection of a legal expert. You’ll be protected from collection harassment and collectors will not attempt to skirt debt collection laws. An attorney will keep you informed of your rights and if they are violated, act on your behalf.
- Working with a settlement attorney gives you peace of mind. You won’t need to deal with endless calls from creditors and you’ll know something is being done about your debt.
Debt settlement is right for many people, but it’s not perfect. You’ll likely need to pay taxes on whatever amount is forgiven in the settlement, which can create another a whole new debt problem with the IRS. Bankruptcy would be an option to avoid tax liability on cancelled debt since no taxes would be owed if discharged in a Bankruptcy.
If you have questions about whether or not debt settlement is right for you or you would like to speak to someone about the next step, we can help. Contact 1.800.220.4318 for more information.