If you successfully complete our program, it's possible that you'll enjoy these benefits:
- Settle your debts for less than you owe (read here for full details about
how much you can expect to save)
- Resolve your unsecured debts in 18 to 60 months (read here for full details on
how long our program lasts)
- Backed by a Money Back Guarantee on Service Fees (read here for full details about
our money back guarantee)
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Useful Information about Debt Settlement Lawyers
Many consumers who are considering debt settlement encounter law
firms that offer debt negotiation services on behalf of their
clients. The concept is no doubt enticing, and although some
consumers have had success with this model, there are others who
have not been so lucky for a variety of reasons. The purpose of this
article is to clarify different issues that lead some consumers to
being dissatisfied with using debt settlement lawyers.
1. Law firms are not able to stop litigation from a creditor who is
pursuing a past debt that you actually owe (outside using the
methods that a regular settlement company can use – mainly setting
up a payment or settling the debt before it gets to this point).
Ultimately, the likelihood of legal action taken largely depends on
a. the creditors own internal policy toward delinquent accounts and
debt settlement in general and b. factors that have to do with the
client (as opposed to the company) like account activity prior to
falling behind (read this article about
credit card debt negotiation
to learn more about whether you’re in a good position for success
with debt settlement).
2. Many debt negotiation attorneys cannot give legal advice. Most
debt settlement lawyers serve clients nationally, so unless they are
licensed in your state, you’ll be paying extra fees for a law degree
that can't be put to use.
3. Along the same lines, since they operate nationally, most debt
settlement lawyers do not represent their clients if legal action is
taken by the creditor.
4. Debt settlement lawyers tend to be much more expensive than other
alternatives because many take a percentage of your savings. For
example, let’s assume that you owe $30,000 in credit card debt, and
you decide to hire a debt settlement lawyer to negotiate your
accounts. He or she charges 5% of the amount that’s owed up front as
a retainer fee and a monthly maintenance fee of $50 for the length
of the program (36 months). So far so good, but the lawyer is also
entitled to 30% of the savings. In the end, the total fee you will
pay comes out to $8700 if your debt is settled for 40% of the
outstanding balance. Sure, you still come out way ahead versus
paying the minimums on high interest credit cards, but there are
economical options available that will deliver equally satisfactory
results.
5. The accounts may not be negotiated by an attorney. In light of
the fact that they oftentimes charge higher fees, many consumers
feel it doesn’t make sense to pay higher prices when they can
receive the same level of expertise with a more cost-effective
alternative.
In the end, the debt settlement lawyer model only makes sense if a)
the attorney only operates on a local level and will represent you
in court in the event of a lawsuit or b) they offer fees that are
competitive with other companies in the industry. Even then, before
you consider a debt settlement lawyer, check out whether they’re in
good standing with the Better Business Bureau. Always remember: just
because they passed the Bar, it doesn’t necessarily mean they have a
good reputation for helping their clients.
If you would like to learn more about Franklin Debt Relief’s debt
settlement program, please feel free to call (877) 274-1260 to talk
to a consultant. You can also submit your contact information
here. |
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