Who needs a debt settlement attorney?
Do you find yourself drowning in debt without enough resources to pay it back, creditors nipping at the heel with strongly worded emails, official sounding letters, and more than a few phone calls a day? It’s not that you don’t want to pay your creditors, but rather that you simply can’t. Any number of things may have happened – you or your significant other may have fallen ill. Your car may have broken down. Your home may have needed immediate repairs. More importantly, you may be owed money and may be in a similar situation that your creditors are in. Debt can be a result of poor planning and careless spending habits just as much as it can be a result of unforeseen holdups in your cash flow due to a defaulting debtor. This puts you in the same boat as the people you in turn owe money to but can’t pay back due to an unsteady cash flow. It’s a vicious circle that can eventually lead to ruin.
This is where a debt settlement attorney comes in. A debt settlement attorney might be able to help lower your debt, consolidate it, or put you on a payment plan. This is all provided that it is unsecured debt which didn’t require collateral. This is all well and good, but the best outcome would be to have monies owed to you promptly paid so that you can in turn settle your debts without resorting to the aforementioned.
Creditors take huge risks on unsecured loans and will generally rather negotiate than write the debt off. This isn’t the best-case scenario, but when it gets to the point where a debtor faces the potential of bankruptcy, the creditor may at least agree to a reduced amount. Should you enter bankruptcy, they will have received nothing, this is the worst-case scenario and means that your creditor loses all the way. In many instances, they will rather opt to receive partial repayment than nothing. By making use of the services of a law firm to act on your behalf in collecting the debt you stand a much higher chance in getting defaulting debtors to pay, this means that your debt can then more quickly be settled without entering into negotiations. You get your outstanding money, your creditors get theirs, and business relationships are maintained.
Some debt settlement attorneys work on contingency, which means that you don’t owe anything upfront but they will take a percentage later on if you win the case. The same principles apply to debt collection, where the law firm will assess your prospects of recovery and then enter into a contingency fee agreement with you.
It may seem tempting to represent yourself in debt collection in order to cut costs, but hiring a professional law firm will greatly increase your chances of success. Communication via a law firm generally carries far greater weight. A law firm with commercial law experience knows how to negotiate, understands commercial contract law, and will be able to advise you on how best to proceed.
It should be noted that in some cases a debt settlement attorney might not be successful and bankruptcy might be the only viable option. In such cases, Van Zyl Ebrahim Cook Attorneys Incorporated has substantial experience in insolvency law and will be able to assist you through this trying time.