Debt Settlement Law Firms: Get to Know Them Better

Share You might not have heard about this exciting new trend of settling your debt properly, but believe it or not, there are fully operational Debt Settlement Law Firms working for the betterment of your acquired debts.

You might even caught a whisper of an idea that some people who negotiated with credit card companies, actually only had to pay half of what they originally owed.

This radical idea is actually quite true.

One of the biggest differences in how debt settlement is handled would be in the collection call department.

When you fall behind on your debt, there is nothing you can legally do to stop from being called.

After 3 to 6 months of inactivity, a 3rd party collection agency is contacted and the account is passed onto them, Once into the hands of a Debt Settlement Law Firm, the firm has the power to make all calls to it’s clients to stop immediately.

There are many legal options available through the law firm if future calls are initiated. These unwanted and unwarranted calls fall into the FDCPA (Fair Debt Collections Practices Act) and legal action can be taken.

Your first line of defense would be by using a debt settlement law firm is by decreasing or stopping the collection calls made.

Another important advantage of any debt settlement law firm has to do with how lawsuits are handled. If you are not aware of this, once you fall behind on your payments, the creditors/collectors have the legal right to pursue you through the courts to collect the debt.

It is important to note that suing/taking legal action in not the mainstay of the collectors, and is rarely exercised, often because of time, energy, and money.

Another advantage of a debt settlement law firm can directly contact and negotiate a settlement with your collector, even after the attack dog summons have been issued.

A debt settlement company does not have this power, and typically the collectors like being contacted by a reputable law firm before needing to go to court. In the unlikely case of being sued, and you have the law firm behind you; you might find yourself having a more favorable outcome.

Perhaps the biggest advantage of any law firm over a company is how they are constructed. The vast majority of debt settlement companies are not lawfully allowed to work in the United States, and some aren’t even set up to operate in their own state.

Another issue with debt settlement organizations is their inability to disclose how this process works, sugar coating the real issues underneath. Basically they tend not to point out or mention the downsides of their programs.

The states attorneys and Federal Trade Commission are cracking down severely on these companies, shutting them down as quickly as humanly possible.

When this happens, typically the company doesn’t have the funding to reimburse its clients for the fees they collected, because of the lack financial stability.

All the ship starts to sink, it’s usually an every man for himself type attitude. Now the debtor is left holding the perpetual bottomed out bag, making this nightmare scenario all the more terrifying.

Some would say that for this reason alone, law firms are a much safer option.

As a final point, a lot of unscrupulous debt settlement organizations will allow their clients to sign up for a program, pay whatever they want, and stretch out the debt settlement program. By stretching out the debt settlement program, the savings decrease and the potential for a lawsuit will increase.

Obviously these companies cannot legally give the client advice or assistance when they’re sued, so they are basically setting up the client to fail.

If you cannot get this process done within three years, bankruptcy may become a last resort option. A lot of these companies are on the lookout for the next victim, so be careful.

It's always best to allow ample time to do research, thoroughly analyze all the facts, tips and information this website provided, then make your decision based on what you feel is right.

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