One of the first major differences in how debt management is handled must handle call talks. When you first get behind and your debt is still in the hands of the original creditor there is no legal thing that can be done to prevent them from calling. However, when the creditor sends the account to a third party collection agency that will happen somewhere between 3-6 months after falling behind things change. Legally once in the collector's hands, a law firm will have the power to make all calls to his client interrupted and if the collector continues to call and harass the client, legal actions may be taken against that creditor because they will violate the Fair Debt Collection Practices (FDCPA) Act Act).
So the customers first advantage of using a law firm will be a much reduced activity in meeting calls, which is very important for some people. All regular debt settlement companies claiming they can stop the conversation simply do not tell the truth and you should be very tired of them because of this.
The next big advantage that a law firm has about debt settlement is how a trial can be handled. If you are not aware of your credit card debt, creditors / collectors will have legal right to drive you through the courts to collect the debt. But I will mention that the mood is not the reason for the collectors and is not practiced very often; The reason is that it simply costs too much money and time on creditors' behalf without guarantee of getting some money even if they could get a judgment anyway.
The advantage that the law firm has is that they can still legally contact and negotiate a deal with your collector after they have issued a notice to the court. A debt settlement company does not have this legal force. The collectors are very willing to negotiate a solution even after the call has been issued. They realize that they can get very little about anything, regardless of being contacted by a reputable law firm who is willing to offer them money and settle the debt without wasting time or money going to court is very beneficial to the collector.
If you get fit and you only have a standard company that represents you, you can expect to go to court and try to figure it out yourself. This often results in a verdict for the debtor!
Correct legal attitude
Perhaps the biggest advantage that the law firm has over a company is how they are created. The majority of debtors are not legally allowed to work in all states. Many are not even set up properly to work in their own state.
The state attorneys and the Federal Trade Commission (FTC) dismantle them and close them as quickly as possible. When this happens often, the company does not have the money to pay back its customers for the fees they paid to a company that will no longer be on business and can no longer help solve its debts. Now the debtor is charged that the bag has paid thousands of fees but still stuck in debt and this nightmare scenario happens more than you might think. Thus, the law firm makes a much, much safer alternative!
Another problem that many people have with debt settlement companies is that they will not reveal how this process works and simply comes sugarcoats things and preach about the major benefits but never mention a disadvantage. A law firm must legally reveal everything about how it works before you can notify someone to a structured payment plan. Many companies do not have your interest and will say what is required to get you registered, though they are fully aware that they are setting you up for failure.
Which leads me to my last point, many unscrupulous companies will allow their customers to log into a program and pay what they want and put them in programs set up for much longer than they should be. By extending a debt loss program, the savings and the potential for a trial will increase. These companies can not legally give the customer advice or help if they are sued. It is considered unlicensed law practice and this is what I mean of them knowing that they will set you up for failure. If you can not do this process within three years, four max in special situations, then you should seriously consider bankruptcy. A law firm will be excited and tell you, where many shady companies will keep trying to sign you in.