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Debt Settlement Must Be Hired Only When Needed

August 22,2010 by: admin

Debt relief is one of the top wishes of many debtors today. With the economy still regaining its strength, it wasn’t easy for a lot of consumers to stand again. The recession has left them burdened with debts and even if it moved out these people are still in debts. Debt settlement lawyers may come in to dispute with creditors to change the contract terms and help the debtors relax. However, there are limitations to using this service. 

Experts outline the best times when debt settlement lawyers are needed on the debt relief list. 

When Debt is Large Enough

Debt settlement lawyers charge their client s with as high as $500 to thousands of dollars. A debt costing a thousand dollars may not need a lawyer for its dispute. Clients may end up paying for the fees more than their debts. 

When Debt is Unsecured

A secured debt won’t really need to have legal assistance. Secured debts could be easily settled when the creditor takes the property used by the clients as collateral. But with unsecured loans, clients should call the debt settlement lawyers. Examples of unsecured debts include credit card debts, student loans, medical bills, etc. 

When Creditors Harass

Creditor harassment includes the use of abusive language and threats to injure or damage debtor or his property. Under the Fair Debt Collection Practices Act (FDCPA), harassment by collection agencies is illegal. This law protects consumer rights against debt collection procedures that are unfairly done. 

Credit Report is Manipulated

Credit Reports and credit scores hold a very important in a customer’s financial background.  Usually, these tools are used by creditors, insurance companies and even employers. Manipulated reports and scores may cause more damage to the person’s wealth, assets and career. With this critical aspect in mind, a debt settlement lawyers can make sure that clients are protected from illegal acts and be informed of the consumer’s rights. 

How is the Process Done?

Debt settlement lawyers or financial lawyers will negotiate with your creditors and change the terms of the contract that would both be beneficial to the creditor and debtor. The negotiation may take some time because it involves a lot of decisions and arrangements. And when the creditor and the lawyer have agreed and finalized the terms, it’s up to the client to work his way out of the debt. He or she must comply with the new terms. That is to pay the proper amount and it must be done timely. After which, the creditor will send a letter to the client indicating that the debt is already relieved and the client is free from debt. The creditor should also send a letter to the major credit bureaus about the settlement so the client’s credit reports and scores will be modified.


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