Debt Reduction Law
Professionals who specialize in debt reduction law can help a financially struggling client come to terms with the wide variety of legal options that may be available to them. Whether the need is for the settlement, elimination, negotiation, consolidation, or reduction of debts, these professionals can generally provide answers and choices that a debtor may not be aware of. Counseling on credit issues or how to avoid filing for bankruptcy may also be provided by these legal professionals. Most clients would prefer to find an alternative to a bankruptcy filing. Law firms who deal in the settlement of indebtedness can explain the complexities of such alternatives in a way that a client can easily understand. These professionals will often negotiate with creditors and come up with an agreement between the creditor and the debtor that is beneficial to both parties. The creditor knows that recovering even a part of the money that is owned to them is better than loosing it all should a debtor declare bankruptcy. For this reason, they are often more than willing to cooperate with settlement negotiations. When a consumer can come to an understanding about the many legal options that are before them in the area of debt reduction law, it is much easier to make a wise choice when dealing with financial struggles.
Specialists in debt reduction law can help clients who face the inevitable last resort of bankruptcy. The idea behind bankruptcy is to provide the individual with a chance for a fresh financial start. While there are a number of alternatives that can be explored, for some consumers, bankruptcy is the only reasonable option. The help of an expert in debt reduction law is necessary for any debtor who faces this unfortunate option. In bankruptcy, a debtor's assets may be liquidated and then distributed to creditors. These creditors will have been ranked according to priority to insure fair distribution of a debtor's assets. Lawyers who specialize in the complicated issues pertaining to bankruptcy should always be consulted before anyone decides to take move forward with a bankruptcy proceeding. Among the different types of bankruptcy are Chapter 7, Chapter 13, Chapter 12, and Chapter 11. Chapter 7 is very straight forward. A borrower is released from debts and assets are liquidated to pay off creditors. Some assets are considered exemptions and can be protected from liquidation. A Chapter 13 bankruptcy filing involves creating a plan for repayment of at least part of the money that is owed to creditors. Chapters 11 and 12 deal more with corporate and business bankruptcy proceedings.
An alternative to bankruptcy can be found in the consolidation or restructuring of debts. Professionals who are knowledgeable about debt reduction law can guide a client through the process of bringing indebtedness under control. This can be achieved by negotiating with creditors and working through a plan that allows for repayment of money owned without filing for bankruptcy. Personal face to face counseling in this field is generally preferable to online communications. There are many unscrupulous organizations who will take advantage of desperate borrowers by offering to simplify all of their debts while charging large fees. While counselors in this area are not necessarily lawyers, they should possess an understanding of debt reduction law. Reputable agencies will feature counselors who have earned certification in the field. These counselors will spend time with a client evaluating that client's individual situation. Getting creditors to lower interest rates or to waive certain fees is an important service that many of these organizations will provide. The types of debts that are generally eligible for these consolidation efforts can include credit card liabilities, signature loans and personal loans, store charge accounts, and other unsecured debts. Once a restructuring agreement has been reached, a borrower will generally make one monthly payment to the restructuring agency. The agency in turn will disperse funds to creditors according to the agreement.
An understanding of debt reduction law is important for clients who are in need of foreclosure mediation. Legal professionals can serve clients in this area by working with lenders to help home owners avoid bankruptcy and keep their homes. One approach is to negotiate a forbearance agreement. A forbearance agreement gives the borrower the opportunity to catch up on payments that are past due and get back to making regular mortgage payments. This can be achieved by adding to the regular monthly payment. Some lenders require that the borrower pay up to one hundred and fifty percent of their original payment until all money owed is paid in full. Loan modification is another possibility. When loan modification is agreed to, the amount of money that is past due is placed at the end of the loan. This way, a borrower can simply resume making monthly payments again and the lender will consider the borrower up to date. Some lenders require that the borrower supply a letter of hardship that gives the details of the circumstances that caused the borrower to fall behind on payments.
When a debt settlement plan is necessary, there are certain questions that a potential client should ask counselors who specialize in debt reduction law. Is the organization a member of a reputable trade association that oversees their practices? What kinds of fees will be charged and are there any hidden fees to come later? How long has the organization been in business? How much debt has the organization settled? With the help of specialists in the field, many borrowers have been able to slowly rebuild their financial reputations. The Bible talks about the value of maintaining a good name. "A good name is rather to be chosen than great riches, and loving favour rather than silver and gold." (Proverbs 22:1)
Debt Reduction Law CenterA debt reduction law center can help the financially troubled person get out of debt, pay their creditors and avoid bankruptcy. When a person begins this process they can expect the lawyers to work on their behalf and deal with creditors. If a person is beyond being able to control finances with a consolidation program, they should look into a financial advisement program before considering bankruptcy.
These programs work with people who are behind on their bill payments by several months. Most people who work with a debt reduction law center could not complete a consolidation program or could not make the payments of a program due to their outstanding debt. While working with debt reduction law centers is really just one-step away from declaring bankruptcy, most advisors will do everything they can to prevent the consumer from having to take that drastic step.
When a person chooses to work with a debt reduction law center, the lawyers then serve as a mediator between their client and their creditors. The role of debt reduction law centers is to negotiate a reduction in the total amount the client owes to each creditor. Not only does this save money for the client, but also insures the creditor will get at least a portion of the amount repaid. Lawyers may choose one of three options for settling the client's obligations: negotiate for a reduced amount; settle for payments on a reduced amount; or extend a negotiated amount until the consumer has sufficient funds available.
There are some negative factors to working with a debt reduction law center that a person should be aware of before they proceed with this course. Regardless of what the organization takes to settle a client's obligations, the client's credit reports will read "settled in full" instead of "paid in full," implying that the person was unable to pay the full debt, but negotiated a smaller payment. Therefore settling for a reduction can negatively impact one's credit for 7-10 years. However, working with a lawyer still is a better option than filing for bankruptcy. While settling for a reduced obligation is recorded only on the consumers credit report and is therefore not public record, a bankruptcy is public record.
If attempts at credit counseling and consolidation have failed, then working with a lawyer may be the next step. "No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon." (Matthew 6:24) Because God's word instructs people that they cannot serve both God and wealth, it is therefore important to consider all options to pay off one's obligations swiftly. Working with debt reduction law centers at least can give a consumer guidance regarding their options.
Debt reduction law firms help people out of financial binds. These professionals can serve as the middleman between a debtor and their creditors, and try to establish peace. The firm can also help institute a payment plan to get back bills caught up and paid. People who have been struggling with finances for a long period of time shouldn't fret because help is on the way. Debt reduction law firms want to see their clients get their lives back on track and not have to worry about financial stress ever again!
Debtors will worry far less about finances if they contact a debt reduction law firm. The attorney's office has many qualified and trained professionals who are ready to help make decisions regarding their clients' financial situations. The counselor will ask that the client bring in all of their debts as well as their income information. A good attorney will help the debtor not only negotiate lower bill payments, but also establish a budget that can keep them out of financial trouble for good. Though most people want to get out of debt as quickly as possible, there are lawyers that will tell clients a quick fix is not an easy answer. Debtors can obtain financial freedom only after implementing discipline, hard work, and a solid financial foundation.
People who have multiple loans and/or debts will want to meet with a debt reduction law firm which will only charge a small percentage and few fees. The lawyers know the most important thing for their clients is to get out of the financial binds, not dig a deeper hole. The fee that a firm charges is usually minimal, especially if they are there for the right reasons. If the debt reduction law firm's main desire is to see debtors regain good financial standing, they will realize that clients don't have money to be throwing around. That is why it's good to check into nonprofit debt reduction law firms and see if they can help out.
People with mounting bills and loan payments need to consider talking to an advisor or attorney today. Look on the Internet for companies that might be available in the local area. Pray that God will provide guidance to the right professional. "Thou shalt guide me with thy counsel, and afterward receive me to glory" (Psalm 73:24). There is bound to be a debt reduction law firm willing and able to help consolidate loans, reduce debts, and negotiate with bill collectors. Pick up the phone and call. Talk with a trained counselor who can guide you in making the necessary steps to a financial, burden-free lifestyle.