Everyone’s real hope is that this article is never actually needed. Of course, there are times when it becomes necessary. In that case, it is important to understand what a debt settlement attorney is, does, and under what circumstances he or she should be called upon.
Bankruptcy or debt settlement should really only be considered when debt is excessive. Being on top of your bills usually is usually a matter of tightening your belt and some basic financial planning. For assistance, you can turn to a credit counselor. This will not affect your credit. If, however, you are in danger of losing your car or home due to excessive debt, it is time to contact a bankruptcy or debt settlement attorney. Experts in the field, they will be able to assess your situation more fully and advise as to your next step. They will tell you your legal rights and obligations, as well.
Bankruptcy is a very serious tag on your record. Debt settlement is serious as well, but can result in a less drastic credit drop. Though you won’t be given the “clean” slate of filing for bankruptcy, your credit score still has a chance.
Debt settlement attorneys specialize in negotiating with your creditors. It is their responsibility to mediate with each creditor, freeze the late fees, penalties, and premiums building up. The attorney becomes the mediator. Creditors stop contacting you. The attorney also works to remove any misleading, unsubstantiated, or incorrect items on your credit report. With the debts, attorney and creditors establish an agreed payment, usually a lump sum. It is possible to reduce it as much as forty percent of the original debt. One important thing to confirm with your attorney is that he will negotiate removal of any negative listing from your report. This gives you a chance to restore credit ratings. Planning for your future can begin.
Remember that debt settlement is generally available only for “unsecured loans”: credit cards, department store cards, or medical bills. Debts on mortgages, student loans, alimony, and child support are “secured loans” that are usually not solvable with debt settlement.
The debt settlement attorney network is filled with people who specialize in these problems and will work to clear your record and get you back on your feet. Your record may still retain words like “settled,” “settled as agreed,” or “paid as agreed.” But this is usually much more desirable than bankruptcy.
Bankruptcy or debt settlement should really only be considered when debt is excessive. Being on top of your bills usually is usually a matter of tightening your belt and some basic financial planning. For assistance, you can turn to a credit counselor. This will not affect your credit. If, however, you are in danger of losing your car or home due to excessive debt, it is time to contact a bankruptcy or debt settlement attorney. Experts in the field, they will be able to assess your situation more fully and advise as to your next step. They will tell you your legal rights and obligations, as well.
Bankruptcy is a very serious tag on your record. Debt settlement is serious as well, but can result in a less drastic credit drop. Though you won’t be given the “clean” slate of filing for bankruptcy, your credit score still has a chance.
Debt settlement attorneys specialize in negotiating with your creditors. It is their responsibility to mediate with each creditor, freeze the late fees, penalties, and premiums building up. The attorney becomes the mediator. Creditors stop contacting you. The attorney also works to remove any misleading, unsubstantiated, or incorrect items on your credit report. With the debts, attorney and creditors establish an agreed payment, usually a lump sum. It is possible to reduce it as much as forty percent of the original debt. One important thing to confirm with your attorney is that he will negotiate removal of any negative listing from your report. This gives you a chance to restore credit ratings. Planning for your future can begin.
Remember that debt settlement is generally available only for “unsecured loans”: credit cards, department store cards, or medical bills. Debts on mortgages, student loans, alimony, and child support are “secured loans” that are usually not solvable with debt settlement.
The debt settlement attorney network is filled with people who specialize in these problems and will work to clear your record and get you back on your feet. Your record may still retain words like “settled,” “settled as agreed,” or “paid as agreed.” But this is usually much more desirable than bankruptcy.
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