An attorney for debt elimination has more than one tool at his disposal to help a client get out from under out-of-control debt and get his financial house in order. Legal assistance can be enlisted either before, or after, lawsuits have been filed by creditors. The first step a lawyer will take is to gather together all of the client's records showing how much is owed to what creditors. The client will also provide proof of income and probably list monthly bills outside of the indebtedness, so the attorney can get a good picture of his client's overall financial state. The next step for the attorney to take is to contact the creditors and negotiate for settlement of the finances owed, which may be a reduction of as much as sixty percent. If the lawyer for debt elimination is successful in negotiations with all the creditors, payments will be substantially reduced. The debtor must realize at this point that there is no more credit available from those creditors until the debts are paid in full. In the event that something catastrophic has happened to the debtor, such as job loss or severe health problems, the answer to the financial problems may be to file bankruptcy. A lawyer will be able to guide his client through that process as well.
Not everyone who offers to help with debt elimination is a lawyer, and there are people who will cheat a debtor out of his money by charging fees up front, and never delivering on their promises. The Federal Trade Commission advises people to watch out for claims such as: "Credit problems? No problem!", or "We can erase your bad credit--100% guaranteed," or "Create a new credit identity--legally." Consumers should save their money and shouldn't believe these claims. These companies will not properly inform debtors of their legal rights, will recommend that debtors not contact creditors themselves, and if they suggest that the debtor creates a new identity, they are leaving this person open to fraud charges. Consulting an attorney for debt elimination is the best way to work out of debt legally and properly.
One of the first steps in the process involves an attorney looking at a debtors credit report to determine if the information there matches what the debtors records. If there is a discrepancy, the lawyer for debt elimination will contact the creditor to find out why. If they are not cooperative, the attorney will file a formal complaint. The complaint will appear in the debtors credit report so anyone checking their credit will know that claim is under dispute. If they are cooperative, however, then it may be the first step in lowering the total indebtedness.
If debts have reached a point where collection agencies are calling, it is important for debtors know what their rights are. Debtors threatened with arrest, job loss, or permanently ruined credit should know that none of these things are true. Lenders can, in certain cases, garnish wages, but not without a court order. By law, they cannot call individuals at work after the person has asked not to be contacted at their place of employment, and they have to cease calling completely if the borrower writes them a letter telling them not to call anymore. The above rules apply directly to collection agencies and limits placed on the creditor who tries to call directly are somewhat different from state to state. One will need to contact the state's Attorney General or a lawyer for debt elimination to find out what the rights are in their state.
Another step a legal professional might suggest one take is debt consolidation. A lawyer for debt elimination can help those in debt find a lender who will lend enough to pay all the other debts off, resulting in one consolidated bill at one lower interest rate than the credit card rates they have been paying. The interest is fixed for the life of the loan, which is an improvement over credit cards, which can raise interest rates at any time. Sometimes an attorney for debt elimination may, after getting the debts lowered, act as a collection agent whom clients a single monthly payment, which he then distributes to the creditors. This prolongs the attorney-client relationship, however, and a monthly fee will be required for his service. The fastest way of finishing ones business with an attorney for debt elimination is to pay the creditors himself after the settlements are agreed to.
If debt seems insurmountable, it might be the time to call in the assistance of a legal professional. While borrowers can call creditors themselves and negotiate a lower interest rate or even get a settlement in the amount, some find the process less stressful and the results more beneficial when a lawyer is involved. Whatever option one pursues, it is important to find a way out of debt. "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law." (Romans 13:8)
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