Useful Information About Debt Settlement Lawyers

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The debt settlement attorney will establish agreements so the credit card companies and collection agencies will contact the attorney instead of the consumer. It is also the responsibility of the debt settlement attorneys to obtain the consumers credit report and work to remove any misleading, unsubstantiated, or incorrect items. This is a very important service that should be utilized by the consumer to restore credit ratings and create a plan for future financial management.

Ultimately, the likelihood of legal action taken largely depends on, the creditors own internal policy toward delinquent accounts, debt settlement in general and factors that have to do with the client (as opposed to the company) like account activity prior to falling behind. Many debt negotiation attorneys cannot give legal advice. Most debt settlement lawyers serve clients, so unless they are licensed in ones own state, one will be paying extra fees for a law degree that can’t be put to use.

One has to keep in mind that using a debt settlement attorney usually applies to unsecured debts like credit cards, medical bills and department store cards. Things like mortgages, student loans, alimony and child support falls into the category of secured debt and there is usually not much that a debt settlement attorney can do with these types of debts.

Debt settlement lawyers tend to be much more expensive than other alternatives because many take a good percentage of ones savings. For example, let’s assume that one owes $30,000 in credit card debt, and decides to hire a debt settlement lawyer to negotiate the accounts. He or she charges 5% of the amount that’s owed up front as a retainer fee and a monthly maintenance fee of $50 for the length of the program (36 months). The lawyer is also entitled to 30% of the savings. In the end, the total comes out to $8700 if your debt is settled for 40% of the outstanding balance.

About Author
BG, a professional debt arbitrator from Oak View Law Group, a law firm with attorneys and debt counselors to help you on credit card debt settlement.

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