Many people who are struggling with staggering debts still want to avoid bankruptcy
. This is an understandable reaction, considering the legal complications and social stigma associated with the bankruptcy process. However, if you are not careful, attempts to settle debts in other ways can leave you worse off than before.
If you do get involved in these negotiations yourself, get yourself ready. You will need the intestinal fortitude to deal with annoying phone calls and letters, and outright lies by collectors playing the old "good cop, bad cop" routine. And there can be tax consequences to settling debt as debt forgiveness may be taxable debt.
So what can debt negotiation attorneys offer us?
They claim that they know every legal aspect of the debt settlement process. They promise to help us to get rid of our debts. They concentrate on reducing your debt through legal debt negotiation.
Renegotiating debts without the assistance of a qualified debt negotiation lawyer is a risky venture. The possible drawbacks range from simply being unsuccessful to becoming the victim of a scam.
Here are some other pros for asking a professional attorney to perform his debt negotiation services for you:
Lawyers are licensed by your state bar. Lawyers have a high level of responsibility for handling client funds. If a lawyer misuses your money, he or she faces disbarment.
A lawyer has a professional reputation to protect in the community.
A lawyer can advise you in legal ways to protect your assets.
Anything you say to your lawyer is confidential and cannot be used against you.
A lawyer can threaten bankruptcy if the creditor is unwilling to negotiate.