In May, 2013 ‘The Wall street Journal’ ran a story about how Federal prosecutors had accused the operator of an opulent Brooklyn nightclub swindling more than $2 million by allegedly running a debt-settlement firm, pocketing money that people had entrusted him and his firm to pay off their loans as a part of their debt settlement process. In the wake of the recent U.S. financial crisis this has been a trend that has often worried not only economists, financial analysts, Government officials and the general people but especially those who happen to be the worst hit in this kind of scams where they lose their money at a time where they are already almost on the verge of bankruptcy.
A rather long period of recession has led to a country riddled with debt and many thousands of saturated Americans suffering from loss of jobs and emotional as well as financial bankruptcy. Interestingly, most of those in debt, in the US are middle-class or the lower middle-class people who had moderate incomes, which they supplemented with irrational use of the credit card to live the high life.
As if as a result for this, there are many settlement companies that have come into being with claims of settling the debtor’s debt by a huge amount. How much of this statement is true or false depends on the reputation of the company, their experience and track records in handling such cases and the powers of negotiation.
But many a times people don’t know whom they should trust, more importantly as the example above shows they don’t know if their trust in the firm is really well put. Amidst such confusion however hiring a lawyer to settle your debt can actually make a lot of sense.
Why a law firm can help you better to settle your debt
- Often debt settlement firms will tell you to stop payments to your creditors so that you can save to pay back a neat sum of money as settlement. This often makes the creditors see red and can lead to lawsuits.
- A law firm will know how to handle such lawsuits
- A law firm will be able to keep away harassing creditors form reaching to you
- Once your creditors know that you have hired a lawyer they are automatically aware of mistreating you, because they know you have legal advice in place.
- A law firm will interact with your creditor on your behalf and still negotiate with the bank to try and negotiate your debt.
- If you find at any point that and your family and you could be jammed in extreme measures for consumer credit card debt, it is only a debt settlement law firm who can protect your economic safety.
How do you ensure that your debt settlement company is not taking your for a ride
Be smart and make sure that in spite of your rather weak financial conditions you are not taken for a ride. For this you’ll need a little bit of research before you hire the debt settlement company. Take your time, don’t rush into things. Once you have made a list of probable’s that fit your criteria, make it a point to visit their offices and ask pertinent questions.
If necessary take a friend along with you who is knowledgeable about these things or has had previous experience in handling debt settlement. Do a bit of background check on the firm; ask for references from people who have already used them. Once you hire the firm, periodically ask for the status of your debt, and maintain contact with the creditor also if possible so as to be able to check whether your debt is being paid off.
For more details on how a good debt settlement company can help you out call up the Shah Peerally debt settlement firm .