When you are struggling with debt, it is not uncommon to turn to a professional to help you manage the problem. Many people look into debt settlement companies or debt restructuring organizations for help. While these types of businesses can provide some help with your debt, you may be better off financially having legal assistance.
Using an attorney for your debt issues has many benefits that cannot be obtained when using other forms of debt restructuring. An attorney can negotiate your debts just like a consolidation company, but they can also provide you with additional services.
Benefits To Using Legal Assistance For Debt Issues
• Legal Knowledge. Your attorney understands debt and contract law. They can easily work with your creditors to reduce and consolidate your debt within the terms of your contract. Additionally, since your attorney understands these laws very well, they may also be able to use the terms of your contract for credit to your advantage. Most people do not stop and read these terms and they can contain important information about repaying your debts.
• Negotiation. Lawyers are trained negotiators. This skill can benefit you when it comes to reducing your debt burden. Your attorney may be able to have fees and other charges removed from your debt as well as having interest rates dropped or stopped. Each of these benefits will greatly reduce your debt.
• Cease and Desist. Your legal representative ill have the authority to make debt collectors cease and desist all collection efforts while they are in the negotiation process. This will help give you a little relief as you put your financial life back together.
• Credit Reporting. As part of the repayment plan, your attorney can require the creditor to sign a contract stating that they will report the debt as paid in full when it is paid off. Many creditors “forget” to do this, leaving you with a tainted credit report. By requiring these companies to post your account in this manner, your credit score will not suffer the same impact as a bad debt. Improving your credit score will be very important once you have repaid your debts so that you are not facing future financial problems and can reestablish credit.
• Bankruptcy Option. If your financial situation is one where the only option is bankruptcy, your attorney will be able to prepare this type of case for you also. Most attorneys, however, are often able to avoid this option through negotiations with the creditors.
• Future Financial Planning. Once your debts are under control, your attorney can help you establish trusts and other legal documents to protect your assets in the future. This is very beneficial to your financial security. This type of service is only available form an attorney.
If you are facing financial hardships and are not sure where to turn, take the time to investigate a law firm or attorney that specializes in this type of practice. You will be amazed at the help that they can provide and their services are very similar in price to consolidation or restructuring companies. The benefits will help you regain control of your debts and create a bright financial future.