When you are confronted with a mountain of overwhelming debt, it may seem like bankruptcy is the only option. However, sometimes, seeking debt negotiation/settlement is better. Unlike bankruptcy, which involves all of your creditors and the bankruptcy court, debt negotiation/settlement involves a one-on-one negotiation directly with your creditor (or creditors). The goal is to negotiate an agreement where — maybe — your creditor agrees to accept less than full payment. Creditors are willing to engage in negotiations because they know that, if you file bankruptcy, they are likely to receive nothing on the debt.
However, it is important to work with dedicated and experienced debt settlement attorneys like those at Guardian Litigation Group to maximize your chances of success. Here are several good reasons to work with a debt settlement attorney
Evaluating Strategies & options
When you consult with a debt settlement attorney, the first step is to engage in discussion of your goals and financial needs. Every debtor needs to get out from under their debilitating debt. But some debtors have assets that they want to avoid losing to their creditors, like a home or an automobile. And some debtors have long-term goals like saving for retirement. Determining the right option for debt relief must account for those needs and goals.
The second step is to conduct an analysis of your financial situation, including all debt, types of debt, income and assets. Based on an evaluation of this information, a trusted debt settlement attorney can provide advice and counsel on strategies and options. Depending on your circumstances, debt settlement might be the best course of action.
Making Contact & Soothing Creditors
Another good reason to work with a debt settlement attorney is that contact is made with the creditor (or creditors) and negotiations can begin. This can be important because, sometimes, for very good reasons, debtors avoid taking the calls and responding to letters from creditors and debt collectors. But, while understandable, avoidance can cause debt collectors to become aggressive and to begin filing liens and litigation. Retaining a debt settlement attorney can sooth the creditors and often pauses more aggressive creditor actions. This can give everyone an opportunity to try and resolve the debt problem.
Not Being Intimidated
Retaining a debt settlement attorney is also helpful because your attorney can handle the stress of making the calls and conducting the negotiations. For you, making the call can be intimidating and stressful. But worse still, the conversation can cause even more stress if you end up confused and unable to understand what the creditor’s representative had said. On the other hand, your lawyer has negotiated with creditors before and has the experience and training to not be intimidated.
Knowing Debtors’ Rights
Along the same lines, proven debt settlement attorneys have been educated and trained to know and understand debtors’ rights under federal and state statutes, regulations and court decisions. As such, creditors will not be able to “pull a fast one” on your debt settlement attorney.
Preparing for Bankruptcy
Finally, if it turns out that no negotiated settlement can be reached, working with debt settlement attorneys can be helpful because you are now better prepared to file for bankruptcy. First, you have taken the practical steps of gathering and tendering copies of your financial documents. Second, you have tried the alternatives which have been unsuccessful. This means you can go forward with a bankruptcy filing knowing that you tried your best to avoid it.
Contact an Experienced Debt Relief and Debtors’ Rights Attorney
For more information, contact the Debtors’ Rights attorneys at Guardian Litigation Group. We can help with debt settlement negotiations for an individual creditor or a group of creditors. We can also help if you think bankruptcy is the right option. We have the tools and experience you need. Our mission is to provide unparalleled legal services and support for those being crushed by their debts and harassed by their creditors. We can be reached via our contact page or by phone at (949) 569-9006.