subject: Debt Settlement Legal - How Some Financial Laws Could Prolong Debt Relief [print this page] Debt Settlement Legal - How Some Financial Laws Could Prolong Debt Relief
There are laws that might interfere with the process once you go for debt settlement. Many of these laws might be very harmful for your finances if you don't make sure that you take some precaution measures before filing for bankruptcy.
The waiting before filing for financial settlement. The procedure requires you to complete many documents before going for a settlement. Most of these are processed by the debt settlement company but the whole procedure might take time and waste money. Make sure that you make a list with all the documents you need before going for debt settlement and if you can obtain some of them earlier you should spare some time.
Creditors that will only discuss with settlement companies. Before filing for a settlement you might want to inform your creditor that you are willing to negotiate what you own. Some creditors have policies that only allows them to discuss with debt settlement companies or lawyers about this. Even if you are going to hire a debt settlement company, discussing with your creditor would be delayed until you find a suitable company.
Waiting for the process of financial settlement to end. Another waiting period included in the debt settlement process would be waiting for about 4-6 month until the case is solved. Only after you wait this much you will be able to start paying the rest of your debt. If your company asks for the fee before paying for the debt you owe, you might wait even longer before actually starting to pay your creditor. Some creditors find this really annoying and you could risk being sued. Make sure that you discuss this with you financial settlement company before hiring them.
The law also requires that your credit report should be checked. You will have to wait for it to be sent by the credit bureau. This can also mean a few days or even weeks of waiting and wasting time and money. If the company you choose is professional they might do it faster, but if they are not you will have to wait a while.
Bureaucracy laws are the ones that could prolong your debt relief and if it's possible make sure that you get your hands on the documents and papers you need before actually informing your creditor about debt settlement. You should also hire a financial settlement first and then inform the creditor about debt settlement. This way you won't have to wait until you find the company.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.
