Whether you live in a major city, such as Los Angeles, or in a desert one like Scottsdale, AZ, hiring a debt relief lawyer would make more sense if you are planning to negotiate with creditors.
Legal counsel would be helpful in case you unexpectedly face a lawsuit from one of your creditors. This is something that’s not possible with a debt settlement firm. Barski Law Firm PLC shares some insights to help you navigate the process.
Debt relief attorneys are usually a better choice than debt settlement companies, as the former can protect you under the Fair Debt Collection Practices Act, which ensures that creditors only use legal means to recover their money.
It’s also possible that creditors may even have more reason to go after finding out that you are consulting with a debt settlement company. When planning to hire a local attorney, it’s best to spend time looking for one in person instead of over the phone or online. Avoid transacting with lawyers who seem to be working for debt settlement firms, as you can’t expect them to have your best interests in mind.
Some of the difficult decisions during times of financial troubles include choosing between a Chapter 7 and Chapter 13 bankruptcy. Your lawyer would need to review your situation and choose the better option. Most people with unsecured debt prefer Chapter 7 to eliminate records, but this won’t come without a price.
If you have a house, car or other assets, this option will require you to sell them and pass on the proceeds to your creditors. On the other hand, Chapter 13 involves a court ruling that sets a payment plan that is mutually beneficial to you and your creditors.
There’s no guarantee that a debt relief lawyer would get rid of all your financial problems, but it’s better to hire a professional who would guide you toward making the right decisions.