Those struggling with debt may wonder if they should hire a debt settlement firm or an attorney to help with creditor negotiations. In most instances, it is advisable to avoid companies that claim to help with Debt Relief in Lawrence KS. Although it makes sense to hire an attorney, the client should ensure they are hiring a legitimate lawyer and not a settlement company pretending to be a law firm. In this article, readers will learn the advantages of hiring a debt help lawyer with Joewlaw.com, and when they may be able to settle their own debts.
An Explanation of Debt Settlement
In debt settlement, the client negotiates with his or her creditors for a reduced debt amount. This can be accomplished in three ways: using a debt settlement firm, negotiating alone, or hiring an attorney.
The Way Debt Help Companies Work
Debt help companies often promise to get creditors to settle for a small percentage of the actual amount. If a person is caught up on payments, these companies may advise that the creditor won’t settle unless they fall behind. Typically, the company tells customers to submit the payments to the firm rather than the creditor. These payments cover the company’s monthly fee and the amount set aside for debt settlement. Some companies charge contingency fees, which are based on the amount saved through the settlement.
What a Debt Help Company May Not Tell the Client
Debt help companies may not tell customers that the amount owed will increase once payments stop. Additionally, the company may not disclose that the creditors are not obligated to accept the settlement offer. In fact, many creditors are more motivated to pursue litigation when a client is represented by a debt help company. In many cases, the person would be better served by using the money paid to the debt help company to pay down the actual debt.
When Hiring an Attorney May be the Right Choice
If a person believes they need help negotiating with creditors, a debt help lawyer can offer a detailed analysis of the case along with solid legal advice that can’t be obtained from a debt settlement firm. A reputable attorney will review all the client’s options, and they can recommend strategies such as Debt Relief in Lawrence KS. Moreover, an attorney can defend a client if a creditor decides to sue.