Reasons to Hire a Debt Settlement Attorney

by | Jan 14, 2015 | Lawyers

Many people go through periods when they are no longer able to manage their financial obligations. Depending on the circumstances, attempts at debt settlement will provide the relief that they need. Rather than trying to manage this process alone, it makes sense to hire a Debt Settlement Attorney. Here are some examples of how an attorney will make a difference.

Open Discussions with Creditors and Collection Agencies

One of the first things that a Debt Settlement Attorney will do is make contact with all creditors and any collection agencies that are attempting to collect past due balances. The goal is to ensure that all future communications regarding those debts are directed to the attorney. This will help to eliminate collection calls at home and at work, something that helps to alleviate a lot of stress for the client.

Negotiate Terms for a Settlement

In many cases, people seek debt settlement as a way to avoid having to declare bankruptcy. Since bankruptcy can mean that creditors receive little or nothing in the way of payment for those past due bills, it does make sense to negotiate some sort of settlement. As the talks get underway, the attorney will seek to secure promises from creditors that immediately stop the application of late fees and finance charges.

From there, it is a matter of working with each creditor to come to some sort of agreement on how to settle the remaining debt. This can include accepting reduced payments that pay off the debt in an agreed upon period of time. In other instances, the debt is reduced to an amount that the debtor can retire with two or three payments.

Cleaning Up Credit Reports

Along the way, the attorney will also review the details found on the credit reports issued by the three major reporting agencies. This makes it much easier to ensure that the detail is updated to reflect settlements and any pay-offs related to legitimate debts. It also provides the means of getting incorrect items off those reports. While these actions will not magically make the credit score higher immediately, they will provide the foundation for beginning to rebuild that damaged credit.

There are ways to settle debt. Rather than try doing it alone, obtain legal counsel. In the long run, doing so will make it possible to move on to a more secure financial future. Visit Us for more details.

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