Who affords me extra security a debt settlement law firm ?

First lets identify what debt settlement is. Debt settlement is a process of going past due on unsecured debts to then later on negotiate a settlement to pay back the original debt balance owed at a much lesser amount. This process can save a U.S citizen upwards of 50% of the debt they have to pay back. Also they can look ahead to becoming free of debts within at most 3 years. This process can be taken care of one of two ways, either employ a debt settlement company or a debt relief law firm to enroll you into a debt settlement program. This short article will discuss the differences between the two.

Like everything in life debt settlement has it's pros and cons. The pros being the incredible savings of money and time. The cons are falling past due on the bills, collection calls and the possibility of a lawsuit. A debt settlement law firm has more protections to offer than the typical debt settlement company.

Lets first talk about the risk of getting sued. To begin I want to let you know that it is not commonplace for the collectors to sue, but it is a possibility. Over 90% of consumers who fall into default will never end up receiving a summons to go to a courtroom. 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 clients gets sued there is nothing at all they can do for them. It is UPL (unauthorized practice of law) for these companies to either advise or contact the collector attempting to sue their client. Now if that same debtor 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 call and negotiate a settlement to keep the client out of court. This is a much more acceptable method for the creditor to get paid in contrast to actually bringing the debtor to court which large amounts of money and time for them.

The next subject of debate involving settlement companies and law firms is how the collection calls are taken care of. Part of the debt settlement procedure is the debtor must fall behind in order for the collector to be in position to want to settle an account. 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 calling. But a law firm can send out a statement of attorney retention to force the collectors by law to deal only with the law firm and not the client in in an attempt to collect the debt.

One more subject to think about is that law firms must answer to a higher authority in order to continue practicing law, the Bar Association. This ensures the client a greater peace of mind that they will be represented appropriately throughout the debt settlement procedure. A debt settlement company answers to no higher authority.