What is a Debt Settlement Attorney?
If you are considering debt settlement as a way out of debt you are probably already familiar with the term debt settlement attorney, but let’s go through exactly what they do and how.
His main job is to negotiate with your creditors to help you make a deal that will get you out of debt without having to declare bankruptcy. The aim is to reduce the total amount of money you have to pay. And it is usually possible to get away with paying a lump sum of 40% to 60% of your current outstanding debt. Another important part of the deal is for him to stop all fees and reduce the interest you are paying. This is a large part of the savings you will end up making. He also takes care of all communication with the companies you owe money and not having to deal with collecting calls can be a huge relief. When it comes to your credit report he is in charge of correcting any misleading information that has been reported there during the process of debt settlement.
In order for the credit card companies to even want to talk to you about a deal you have to be at least four to six month behind on your payments. If you keep up with the minimum payments you are a perfect customer for the credit card companies and they are making good money on you. So if you haven’t already fallen behind your attorney will tell you to stop paying on your loans and start saving up money for the lump sum instead.
You should however be aware that he will not be able to remove the notices about late payment from your credit report, but the main debt will be written off as “settled as agreed”, “settled” or “paid as agreed”. He is also only able to help you with unsecured debts as credit cards debts or medical debts. If you are dealing with secured debts like student loans or mortgages he won’t be able to help. And he is not able to give legal advice or represent you in court so in the unlikely case of you getting sued by your creditor he is unable to help and will most likely have to drop the case.
Now that you know what a debt settlement attorney is you can go on to some of the other articles here to see if you need one or not.
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