At Claiming Bankruptcy our goal is to provide you with current information and advice that can be used to help you through your challenging financial situation. While the personal bankruptcy process can certainly prove beneficial for certain individuals, we realize that’s it’s not the only option for debt relief. Apart from a bankruptcy claim, the debt settlement process is another way for people to eliminate large portions of their accumulated debt. Under a debt settlement, a borrower agrees to have a settlement agency or a debt settlement attorney represent them in direct negotiations with their creditors. An attorney for debt settlement will negotiate for a percentage reduction of the total amount owed, providing the borrower with a much lower total balance.
You might be wondering why you can’t simply contact your creditors on your own, without the assistance of a debt settlement attorney network. After all, why should you pay for the services of an attorney if you can accomplish the same thing on your own for free? Well, unfortunately, you likely won’t achieve the same results as an attorney will. Debt settlement attorneys are trained in the art of negotiation and have extensive dealings with credit agencies. A creditor is much more likely to respond positively to an attorney than they will if you simply call on your own.
An attorney based debt settlement comes with many advantages and two of the most common are listed below:
• An End To Harassing Calls From Creditors – one of the most stressful parts of getting deep into debt are the harassing calls, letters and personal visits from creditors. Not being able to answer you phone because you fear who might be on the other end of the line is not a good way to live. A debt settlement attorney can act as the middleman between you and your creditors, meaning that all contact pertaining to your accounts flows through them instead of you.
• A Steep Reduction In The Amount You Owe – some debt settlement claim debt reductions of up to 70% are possible, though obviously your individual situation will vary.
Because not all states permit debt settlement, it’s important to ensure that your state allows it before proceeding with your attorney search. It’s also important to note that following through with a settlement will be damaging to your credit rating, which many people don’t mind since their credit is already damaged before going into the process. You should also keep in mind that a debt settlement applies primarily to unsecured debts such as consumer credit cards, bills related to medical and cards from department stores. Things like mortgages, child support and student loans are not things that can be negotiated through a debt settlement.
As always, when choosing an attorney to represent you it’s critical that you do your homework before simply hiring the first person you come across. Consider researching the name of the attorney or firm using an online search engine. Setting up an initial consultation with an attorney can also be a great way to get to know them better while also gaining a feel for how they operate and what to expect from their services.
For more information on other debt relief options and for a detailed guide on how to claim bankruptcy, please feel free to browse through our comprehensive site.