Debt Settlement: Legal Hurdles to Consider

When it comes to debt settlement, legal help though not required, may prove helpful to many. Spending the money to hire legal representation may seem counterproductive to the overall goal of reducing debt, but in the end, it makes the process much easier, and often provides you with better results. For people who do not have the funds to hire their own consumer credit or debt settlement lawyer, there are several non-profit organizations and third party debt settlement agencies that have teams of lawyers working with them. Contact several agencies to determine which path is best for you to take, because not all companies are created equally.

What Legal Information is Relevant to the Debt Settlement Process?

Consumer Credit law is tricky. There are many laws that work to the consumer’s advantage that creditors don’t want people to know about. Lawyers who specialize in debt settlement are experienced not only in how to deal with creditors and collection agencies, but are also well versed in these laws. While a person can take time to educate themselves on consumer credit law and what the creditors are and are not allowed to do, this is a time consuming venture most people can’t afford to do.

Knowing what the companies can and cannot get away with is very valuable when it comes to debt settlement. This information prevents a creditor from being able to pull the wool over your eyes, and gets you what you want.

Why Should People Seek Legal Assistance for the Debt Settlement Process?

Dealing with creditors and collection agencies on your own can be quite a hassle. Simply contacting them and asking for a reduction in interest rate and/or fees may or may not work. Generally speaking, dealing with the creditor directly and getting what you want is reserved for the people who have been excellent customers, with an excellent payment history. If you were one of these people, chances are you would not be looking for help with debt settlement.

Legal assistance will put someone on your side. A lawyer will be able to contact the creditors on your behalf, and use his or her knowledge of consumer credit law and experience in dealing with the creditors to your advantage, negotiating something you can handle, and the creditor can be happy with.

If you choose to do debt settlement on your own, be careful. Take your time and study up what you can before contacting any creditors. If you choose to get legal help, be honest and up front with your situation and what you are willing to do to settle the accounts to prevent bankruptcy. As bankruptcy is devastating and does require a lawyer, debt settlement is usually the better alternative, and should be considered strongly before bankruptcy.


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