Debt Settlement LawyersWritten by Jill Morrison
In extreme cases of unsecured debt where settlement negotiations break down, many creditors file lawsuits. This legal phase of collection often results in judgments allowing creditors to garnish wages. Debt settlement lawyers have the knowledge and experience to protect the rights of consumers in debt. They follow court rulings such as the Truth in Lending Act, Fair Credit Billing Act, and Fair Debt Collection Practices Act.
Strategies of Debt Settlement Lawyers
Lawyers will continue negotiations with creditors even after a lawsuit has been filed. Sometimes the fact that an attorney has been retained gives creditors extra motivation to make reasonable compromises. Consumer protection laws were enacted because debt collectors were routinely harassing and threatening consumers. Most consumers are unaware of the protection available to them under these laws. Debt lawyers allow consumers to obtain the best legal settlement available.
Lawyers may notify creditors that a consumer believes his rights have been violated. During this process, creditors are obligated by law to investigate the dispute and refrain from taking certain actions such as closing the account or demanding payment. If they do take any of the specified actions, it is a violation of the Truth in Lending Act. Consumers are then entitled to sue creditors for damages.
Sometimes, a lawyer will negotiate a settlement amount and the consumer is unable to come up with the required funds. In this case, the lawyer will try to avoid a lawsuit by negotiating an extended payment plan that is affordable. If successful, his client will be able to pay off debts without the threat of wage garnishment. Attorneys may also file motions to dismiss creditors' lawsuits. This strategy works when proper paperwork is not provided by the creditor.