For people who find themselves in a great deal of debt and no way to honor their obligations, it makes sense to talk with a Debt Settlement Attorney. That attorney will be in a position to provide a great deal of support in bringing some order to the situation and helping the client find the right way to deal with the situation. Here are some examples of the services that the attorney will provide.
Working With Creditors and Collection Agencies
One of the first things that the Debt Settlement Attorney will do is attempt to negotiate with creditors or with the collection agencies that are now charged with collecting the debt. The goal is to put a stop to any fees, accumulation of additional interest, and other charges that are adding to the already unmanageable debt load. At the same time, the attorney will attempt to negotiate some sort of settlement arrangement with those creditors. A settlement arrangement typically provides the benefit of only paying a percentage of the total amount owed. The terms of the settlement may involve making one lump sum payment to the creditor that reflects that reduced total. At other times, the plan will call for the debtor to make payments of a fixed amount over the next several months. In the meantime, the creditor agrees to stop charging interest and penalties on the balance owed.
The Impact on Credit Reports
Part of the negotiation process is to secure a covenant from the creditor that they will report the debt as being settled or paid as agreed once that reduced amount is tendered. This is important, since it will ensure that no remaining balance reflects on credit reports. For people who have already damaged their ratings significantly, this one element of the negotiation can help make it a little easier to start over and hopefully do better with managing credit in the future. For people who have a great deal of unsecured debt and are not sure what to do, contact Brent Sorenson & Associates P.C. and schedule an appointment. After looking over the condition of the finances, there is a good chance that debt settlement will be the most efficient way to deal with the situation and alleviate some of the financial stress that the client is under.