If you’re considering debt settlement because of your bleak financial situation, you’re not alone. With the average American holding nearly $100,000 in debt, it’s no wonder that so many are looking for ways to get out from under the weight of all that debt. Attempting to negotiate and settle is a difficult decision to make and it’s important to understand all of your options and what each one could mean for your future before making a decision. You might be wondering if you need a debt settlement lawyer to help you through the process. Some people feel more comfortable handling their finances on their own, while others prefer to have the guidance and support of a professional. The answer isn’t always clear cut, but here are a few things to consider that might help you make a decision.
Before we get into it, if you’re in the Phoenix area and , a no-pressure complimentary initial consultation with the Wright Law Offices would be the best first step to take. We have extensive experience in crafting our clients a manageable plan of action out of debt, so don’t hesitate to get in touch today – call our team at 602-456-6085.
Advantages of Debt Settlement
Debt settlement is a process of negotiating with your creditors and debt collectors to pay less than what you actually owe of your outstanding debt, whether it’s credit card debt, medical bills, other unsecured debt, or even student loans. There are a few advantages to debt consolidation or settlement that make it an attractive option for some people, even as an alternative to bankruptcy. First, if you are able to successfully settle your debts, you could negotiate lower monthly payments and end up paying back less than the full amount that you owe, which can save you a significant amount of money in the long run. Second, debt settlement can eventually help improve your credit score by getting rid of late payments and other negative marks on your credit report. Finally, debt settlement can provide some much-needed relief from the stress of dealing with debt and aggressive collection agencies and to stop creditor harassment.
This process can be done without the help of a debt settlement attorney, but there are certain benefits that come with hiring one.
Should I Hire An Attorney For Debt Settlement?
When you are struggling with debt, it can feel like you are all alone. You may be tempted to try to handle the situation on your own without involving a lawyer. After all, lawyers come with attorney fees, and you may be worried that you cannot afford one. However, there are several benefits that come with hiring an attorney for debt settlement.
First, debt settlement cases can be incredibly complex, so an experienced lawyer can help you navigate the process, and circumstances are likely to arise during your debt settlement case where having a lawyer is essential. If you don’t have experience with the process, you might not know all of the ins and outs, so a lawyer who specializes in debt negotiation will be able to guide you through the process and make sure that all of the necessary paperwork is filed correctly. For example, if you have a lot of assets or income, if you are self-employed, or if you have filed for bankruptcy before, you may need a lawyer to help you ensure that everything is handled accurately on your behalf. A lawyer will be able to advise you on how to best protect your assets, and they can also represent you in court if necessary.
Second, an attorney can help you understand your legal rights and options, which may be helpful if your creditors are being difficult or uncooperative, which they’re pretty notorious for being. An experienced attorney will know how to negotiate with your creditors in order to get them to agree to a lower payoff amount. Plus, you are working with creditors, they may be more likely to negotiate with your attorney than with you directly. This is because they know that your attorney has experience in these matters and will be able to get them the best possible outcome. This is especially true if you are facing foreclosure or other legal action from your creditors. Having an experienced advocate on your side can make a big difference in the outcome of negotiations.
And finally, having an attorney on your side can give you peace of mind during what is often a stressful and anxiety-inducing process. So many debt collection agencies (including third-party debt collection agencies) engage in unfair debt collection practices, and first and foremost – a debt collection attorney can put a stop to their harassment. Overall, you need someone in your corner during this emotional process. Having a lawyer who is objective and who understands the law can be invaluable. Your lawyer can provide you with guidance and support throughout the process.
If you do decide to hire an attorney, there are a few things you should keep in mind. First, make sure you choose an attorney who is experienced in debt settlement and has a good track record of successful negotiations. Also, remember that an attorney is not a miracle worker—if your creditors are unwilling to negotiate, then you may not be able to settle your debt for less than what you owe, but the Wright Law Firm will certainly do all we can to get you debt relief options.
What are the Disadvantages of Debt Settlement?
However, there are also some disadvantages to consider before you decide to go forward with debt settlement. First, debt settlement will likely have a negative impact on your credit score in the short term. Second, if you are unable to stick to the terms of your repayment plan, your creditors may take legal action against you. Third, there is no guarantee that your creditors will agree to settle your debts for less than what you owe. Finally, debt settlement companies often charge high fees for their services, which can add up over time and offset any savings you might realize from settling your debts.
Phoenix’s Best Debt Settlement Lawyers
If you decide that debt settlement is right for you, only you can decide whether or not hiring a debt settlement lawyer to help you reduce your overwhelming debt is the right decision. There is never an easy fix when it comes to getting out of debt, but with an experienced attorney from the Wright Law Offices, there are brighter days ahead. If your case is complex or if you simply need someone in your corner to help guide and support you through the process, having an experienced attorney by your side to provide sound legal advice can make all the difference in the world.
While we’re known as Arizona’s Bankruptcy Attorneys, there are always possible alternatives to a bankruptcy filing. Wright Law Offices has extensive experience in helping people from the greater Phoenix area settle their debts and rest easier with a custom debt management plan, and we are happy to offer you a complimentary initial consultation to learn about your unique situation. Click here for a free consultation.