Should I hire a debt relief law firm or debt relief company?
First and foremost let me briefly explain what debt settlement is. Debt settlement is a process of falling past due on unsecured debts to then later on work out a settlement to pay back the original balance at a much lower amount. This avenue can save a debtor around 50% of the debt they must repay. Plus they can look forward to becoming completely free of unsecured debts within at most 3 years. This process can be taken care of one of two ways, either hire a debt settlement company or a debt relief law firm (http://www.uscaonline.com) to enroll you into a debt settlement program (http://www.uscaonline.com/What_Is_Debt_Settlement_Credit_Card_Debt_Settlement_Programs.html). This writing will touch a few important differences between the law firm vs the company.
Like everything in life credit card debt settlement has it's positives and negatives. The good thing is the incredible savings of money and time. The cons are falling behind on the debts, collection calls and the possibility of a lawsuit. A credit card debt relief law firm has more beneficial securities to offer than the typical debt settlement company.
Lets first talk about the threat of being sued. To begin I want to let everyone understand that it is not common practice for the collectors to sue, but there is a chance. Over 90% of people who go into past due status will never find themselves getting summonsed to go to court. But you want to make sure that if it does happen to you that you are not left out to dry. With a debt settlement company if one of their customers gets sued there is not a thing at all they can do for them. It is UPL (unlicensed practice of law) for these companies to either advise or contact the collector that is trying to sue their client. Now if that same individual was the client of a law firm negotiating for them to settle their bills the law is different. A law firm by law can still contact and work out a settlement to keep the client out of court. This is a much more favorable method for the collector to get paid in contrast to actually having to go to court.
The next topic of debate between settlement companies and law firms is how the collection calls are taken care of. Part of the debt settlement course is the consumer must fall behind in order for the collector to be offering any kind of settlement. Now you must take into consideration these creditors are not just going to go away, you will definitely be getting collection calls to some degree. A debt settlement company can't do a thing about the collectors attempting to collect the debt. But a law firm can release to them an attorney retention letter to force the collectors by law to deal only with the law firm and not the client in terms of collecting the debt.
One more subject to consider is that law firms have to answer to a greater authority in order to continue practicing law, the Bar Association. This ensures the client a greater peace of mind that there case will be handled properly throughout the debt settlement procedure. On the other hand a settlement company answers to no one but itself.
Steve Bis is a debt analyst with the US Consumer Advocate, which practices debt relief (http://www.uscaonline.com).
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