Is Debt Settlement Legal
Many people debate the question, is debt settlement legal, because it allows the consumer to get out of paying off some accrued financial obligations. Debt settlement programs are available to assist consumers in wiping out existing expenses without repaying complete totals. Offering an alternative to bankruptcy, court cases and never-ending collection calls, settlement or negotiation programs have proven to be the best option in some cases. For those who desperately need help in meeting their burdensome, unsecured loan obligations, yet still want to meet these honorably, an understanding of the legality of this issue can be important.
There can be release for any consumer who chooses a negotiation program to deal with outstanding, personal debt. These programs are offered for those who have experienced financial or personal hardships through health difficulties, job loss, divorce or other tragedies that make it impossible to meet payments on unsecured loans. For many, this will be an embarrassing and gut-wrenching situation in which to find themselves and their families. These consumers wish to avoid bankruptcy at all costs and are relieved to find that there is debt settlement legal and ethical freedom to choose another way.
Many clients who face overwhelming debt have no way to repay and need a way out. The understanding that a debt settlement program simply provides renegotiation of original contracts between lender and consumer is a welcome fact. Renegotiation can vary from a 35% to 70% loan reduction for the client. The legal and ethical basis for this renegotiation is satisfied through a new contract agreement between lenders and consumers facilitated by licensed, experienced arbitrators. Anyone who questions if there is debt settlement legal or ethical legitimacy for this debt relief option, can be assured of the honesty and integrity of the practice because of contractual agreements and personal, financial hardship recognition.
Settlement or negotiation programs usually will not accept a client unless approximately six months has passed without payment on credit card companies and other unsecured loans. The question is again answered by a lender's motivation to legally settle through negotiations. The desire to settle is markedly higher if it is apparent the lender will at least receive some repayment rather than apparently nothing. Whether or not there are options will be determined upon investigation of client credit history, present earning status, lenders involved, and legitimate hardship issues that have circumvented a client's ability to repay original loans. If there is debt settlement legal viability, the negotiation company will accept the case and proceed with arbitration on the behalf of the client. "He shall not be afraid of evil tidings: his heart is fixed, trusting in the Lord." (Psalm 112:7)
Legal debt negotiation can help individuals free themselves from the ever-increasing hold that financial woes have placed on their lives. When looking for financial freedom, this might be the avenue to pursue. Legal debt negotiations are used in the debt settlement process to reduce the amount of money that is owed to creditors by as much as 50-60%. This can make it much easier to pay off financial obligations and receive peace of mind where money matters are concerned.
One form of financial management that is commonly used is consolidation. This process takes all current financial obligations and rolls them into one large loan at a lesser interest rate than the individual creditors charge. While consolidation does save in interest charges, it does not reduce the principal amount. One the other hand, settlement actually involves a company entering legal debt negotiations with creditors to reduce the amount the consumer owes, significantly. Trained negotiators will make legal debt negotiation offers on the individuals behalf until a mutually agreed upon amount is approved by both the individual and the creditor.
It is important for consumers to work quickly to eliminate financial burdens. Legal debt negotiations can often eliminate these obligations in as little as 9 to 24 months. The time certainly depends upon the number and amount of creditors the consumer has. A free consultation from a debt settlement company will present the consumer with a rough estimate of the time frame that can be expected for the legal debt negotiations process to be completed. To work with a settlement company, an individual must be employed and show commitment to paying off all financial burdens. These companies do charge fees for their services, which vary on the complexity of the individuals case and the amount of time that the process might take. However, even with these fees, the reduced amount of money that will be owed will leave the consumer with a balance that is much less than currently owed. It is important to have the faith to overcome these matters and be more concerned with Heaven than the material things of earth. "But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal" (Matthew 6:20).
Creditors are not obligated work with consumers where financial obligations are concerned. Creditors maintain their right to pursue collection of the consumers debts by legal action at any time. However, many creditors are amenable to legal debt negotiation since they would rather receive a portion of their money as opposed to none of it. Furthermore, with negotiations, individuals may be able to save more money than they would with costly legal action.
By enlisting the services of a settlement company, the consumer can significantly reduce their financial obligations. With this legal debt negotiation service, the consumer will be enabled to become free from financial burdens much quicker. As a result, a bright future with financial freedom may be more quickly attainable than ever thought possible. Money matters and concerns plague nearly every consumer.
Debt Settlement Law FirmA debt settlement law firm is a law firm that specializes in helping consumers settle their indebtedness by paying off unsecured credit card debt. They focus on helping a person pay off accumulated bills rather than filing a personal bankruptcy petition. They are in the business of debt reduction and negotiation rather than discharge. By helping consumers repay what they owe by various means, debt settlement law firms can encourage sound fiscal self-management in their clients and provide a different means of return to financial sanity.
Employing this type of company may be the wisest decision made concerning finances. Many people get frustrated and fearful when unable to pay bills, and jump right into a personal bankruptcy rather than considering the alternatives first. Debt settlement law firms can help by negotiating with creditors and establishing a structured plan for repayment that is in line with present and future monetary goals. A debt settlement law firm can be a lifesaver for an individual sinking in personal indebtedness. Finding the right company for specific concerns may take some time to research, but it is worth it, if the problem gets taken care of in an honest and quick way.
These companies may advertise as settlement organizations, debt reduction services, or simply legal representatives. Debt settlement law firms often advertise over the Internet and initial meetings can occur by email or by a toll free call. A struggle to get in touch with someone at a company should give someone a good indication of the lack of professionalism that they may find down the road when working with this particular company. A debt settlement law firm can be a first line of defense against the onslaught of creditors high interest rates and late and over limit fees. Even though the whole situation can be discouraging and embarrassing, it is important to remember that these people are in business to help with financial burdens.
The Bible says, "I have surely built thee an house to dwell in, a settled place for thee to abide in for ever." (1 Kings 8:13) Having a settled place to dwell is an important component of the human condition. A debt settlement law firm can surely help restore that personal settled feeling that comes from getting finances back in order from disarray. Settlement law firms may be a first defense against personal bankruptcy or insolvency, and a great place to begin to restore sanity to financial concerns.
A debt settlement offer can reduce accumulated amounts by as much as 50%, providing a viable option for reducing monthly payments and getting out of debt. Settlements can be managed by a company for a set or percentage fee, or a person can settle it on their own by approaching creditors. In contrast to other strategies, debt settlement offers actually reduce the amount owed.
Not all creditors are willing to entertain this type of negotiation with secured debts; referring to those debts in which collateral such as a car or home is held as security for the loan. Secured debt favors the creditor heavily, and creditors are much less agreeable to settle on default secured debts, since repossession is a simple way for them to recoup their expenses. In many cases, no notice of seizure is even required and if a person has missed even one payment, they might awake one morning to discover that their vehicle has been seized. Matthew 18:29 says "And his fellow servant fell down at his feet, and besought him, saying, Have patience with me, and I will pay thee all."
Unsecured amounts such as credit card bills and medical expenses are better targets. Because these creditors would rather see part of their money as opposed to none of it, they are often willing to accept a debt settlement offer. Their trained negotiators will make suggestions on the debtor's behalf until a mutually agreed upon amount is approved by everyone involved. When a person enlists with a company, they make monthly payments to this service and these funds are used to make debt settlement offers to creditors. These companies can significantly reduce the total, but a person can negotiate debts independently and save the commission of a service.
When contacting creditors to make negotiations, be prepared to do some haggling. Most will not respond to a debt settlement offer unless the account has been delinquent for at least 6 months, and a person must be prepared to pay the settled figure over the phone or immediately. The creditor is willing to negotiate so long as they then see at least a portion of their money immediately. Always give a debt settlement offer that is less than the goal and make sure to get the terms in writing.
These offers can be managed by a third party if a person feels uncomfortable negotiating with creditors, but the negotiation process is easier than many people think and saves the fees and commission paid to a third party service for debt settlement offers. Debt settlement is a much better alternative than bankruptcy, and can significantly eliminate a large portion of debt, enabling a person to become debt-free as soon as possible.