Should I Hire A Debt Settlement Attorney To Settle My Debts?

A debt settlement attorney can help you handle your debt better than a debt relief company or bankruptcy attorney. Debt settlement attorneys are specifically trained in debt law and can offer debtors more protection.

An increasing number of debt settlement companies are offering to resolve unpaid debt for less than what is owed by negotiating with creditors directly rather than filing bankruptcy. Though debt settlement is often advertised as the best way to avoid bankruptcy, many people file for Chapter 13 or Chapter 7 Bankruptcy after working with a debt settlement company without resolving their debt. Even though some clients end up filing for bankruptcy, there are benefits to working with a debt settlement company. Many services provided by debt settlement companies will cost you money, and you may be better served working with a legitimate debt settlement attorney licensed in your state.


What Are The Advantages Of Working With A Debt Settlement Attorney?

A debt settlement attorney typically offers debt settlement services from a legal point of view without upfront costs Debt settlement attorneys do not make their money until the debt has been settled, and they can take a percentage of that debt (generally around 30%).A debt settlement attorney knows what fees your creditors can legally charge you and which they cannot. They also know what fees to charge and how much they should be. Most attorneys know the law better than the credit card companies and debtors themselves and, amongst other things, will know the minimum amount a lender will consider a lawsuit for. Many courts will dismiss or delay (meaning your creditors continue to try to collect from you) debt negotiations with an unrepresented debtor. Still, debt settlements handled by debt settlement attorneys are routinely approved by courts.

Most debt settlement lawyers have small practices, and it may be tough to get someone to handle your file quickly. The debt relief process may also get delayed because debt settlement attorneys typically send debt settlement letters to creditors in batches.

If you are struggling with unpaid bills, it may be better to work with a licensed debt relief lawyer over the many debt relief companies that offer their services nationwide. Unless they are in the debt settlement business themselves, they will not know what steps you need to take to maximize your debt payment and come ahead when all is said and done. Another common obstacle is that some debtors cannot pay their debt settlement attorney upfront. The good news is that most debt relief attorneys and debt settlement services offer free consultations where they can review your case free of charge.


How Fast Can I Get My Debts Settled With A Debt Settlement Attorney Near Me?

The debt settlement process can take a lot of time, but that’s typical if you want it done correctly. The debt settlement company will handle your debt negotiations. You can be debt free in 3 months or less, according to the Federal Trade Commission and various private companies that track the credit card industry.

But if you choose to use a debt settlement attorney, it may take longer. That’s because, during debt negotiations with creditors, they must communicate via mail and phone calls through their debt collection attorneys. So while debt relief companies usually complete all debt negotiation within six months on average, debt settlement lawyers may take up to two years on average before all debts are settled.


Does A Debt Settlement Lawyer Cost More Than A Debt Relief Company?

This is another question we often hear from people first trying to understand the scope of the settlement and negotiation industry. These specialized lawyers cost more because of the debt settlement training they receive and because of their debt negotiation experience. So, typically a debt settlement lawyer will cost more than a debt relief company’s debt negotiation program.

However, it can be more affordable to hire an experienced debt settlement attorney by selecting a debt relief lawyer near you who has been practicing debt settlement for years that may end up costing less in the long run compared to paying a debt relief company indefinitely or until all debts have been settled.


A licensed debt settlement attorney can save you a lot of time and frustration.