Sometime back the Federal Reserve revealed that Americans are in $1.98 trillion of debt which makes the calculated figures to more than $18,000 every household. To add to these statistics, CNN Money reveals that those Americans making a minimum payment on $20,000 in credit card debt, at an 18.9% interest rate, will result in the fact that you will take more than 50 years to pay off loans and in the meantime, you will pay over $50,000 in interest.
With the economy in such a situation, it is not surprising that many Americans are desperate to settle their debt settlement, so that they can begin their lives anew. The good news here is that owing to the financial situation there are many creditors who are ready to settle too, given that the rates are reasonable. Debt settlement is a good method that allows consumers to get back control of their financial situation by using the professional services of a debt settlement company or a law firm who handle debt settlement
This is sometimes essential because in spite of your best intentions as a debtor you might like the adequate knowledge or even the bargaining powers to deal with your creditor. As a result you need professional services and here you are often in a dilemma about whom to hire. While there are a huge number of debt settlement companies to choose from, ask yourself if choosing a debt settlement company would be a good question. This is because, a debt settlement company often does not come with the legal knowledge base that a law firm like Shah Peerally’s Law Firm might have.
We then ask the question what does a law firm have that an ordinary debt settlement firm does not? The answer lies in analyzing both-
- When you hire a licensed attorney, you are hiring someone who comes with an adequate knowledge of law. In addition to good contacts and experience in the industry, these lawyers will not only settle you debt but they will protect you in various ways too.
- There have been plenty of times when during the course of settling a debt, the creditor might have tried to sue a debtor, in such a case you have the protection of your lawyer.
- The lawyer will represented you in a court of law should you be sued.
- The lawyer is often aware of the local laws that come under a particular state. This will help you if you have to appear in a particular state court.
- A good lawyer will also make you acquainted with your rights as well as duties
- If you have a lot of creditors who try to contact you and use threats on you, your lawyer will be in a position to protect you by using legal means. The law is very strict in such terms and can enforce the rights of the debtor too. In a recent case a debt collector in Glendale, Calif., agreed to pay the civil penalty in order to settle FTC charges, when he used unlawful methods for debt collections and used text messages and phone calls, and also failed to disclose that he was representing debt collectors.
- If you hire a local lawyer who is a member of different bar associations it will be of a great advantage to you, because they will be familiar with the state laws.
- A good law firm will review your financial situation and establish negotiations with the creditor on your behalf.
- Often many debt settlement firms make false claims saying that they will be able to perform legal paper work on your behalf. You should know that only qualified lawyers can do this for you and if someone tries to say something different you should check the reality.
Apart from the legal angle, debt settlement involves understanding your financial crisis and making a correct assessment of your repayment options. A good firm will be able to make this process easier for you and handle the legal angle, so that you need not be hassled.