When you are struggling financially, you may think it is unwise to spend money to have an attorney assist you in obtaining debt relief. However, what you don’t know can hurt you. There are a wide variety of debt settlement companies that make lofty guarantees about eliminating your debt for you.
Watch Out For Scams and Fees
However, many are scam artists that are attempting to take advantage of you. Additionally, even legitimate debt relief companies charge you a fee that is a percentage of the total amount of debt that you owe, which in some cases can be thousands of dollars.
A bigger concern is that most debt relief companies do not provide any services until they are paid in full. During this time while you are saving up to pay them, your creditors are not getting paid and they may file collection lawsuits against you. If a lawsuit is filed, a debt settlement company cannot assist you and you will be left on your own.
If you work with a lawyer, a full range of services will be provided to you. An attorney will discover whether the applicable statute of limitations has expired. If the statute of limitations expires, the creditor cannot legally collect from you. However, if you make a payment to the creditor, it could restart or toll the statute of limitations. In other words, your payment could reactivate your liability to pay the debt. A debt consolidation agent that does not know the difference between the debts you are obligated to pay and expired debts could end up costing you a significant sum.
When you work with an attorney, he or she can help make the debt collector harassment stop. A lawyer can notify the debt collectors that you are being represented and that all contact with you should stop. A collector that violates the law can be held liable for violating your rights.
Finally, a debt collector who is aware that you are being represented by a debt relief attorney is more willing to negotiate with you because an attorney can help you file for bankruptcy protection. All debt collectors are fully aware that their chance of recovering anything from you in a bankruptcy case is slim, so your attorney is more likely to negotiate a successful settlement.
Contact a Bankruptcy Attorney at Faro & Crowder, Pa Today to Learn About Debt Relief
Faro & Crowder, PA
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
We are a debt relief agency. We help people file for bankruptcy under the bankruptcy code.