Legal Debt Settlements

Written by Jill Morrison
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When debt settlement negotiations fail, attorneys are required to guard a consumer's rights and protect against lawsuits. Legal judgments may be obtained by creditors or by debtors. Creditors often receive permission to garnish wages. Debtors sometimes receive compensation for violation of rights. Lawyers may be found online with debt settlement expertise. They may be able to negotiate settlements that will avoid lawsuits. They also give assurance that legal requirements are met.

Impact of Lawsuits in the Debt Settlement Process

Consumer protection laws have been enacted to control creditor collection tactics. The Truth in Lending Act, Fair Credit Billing Act, and Fair Debt Collection Practices Act make it illegal for creditors to harass or threaten debtors. If the debtor's rights are violated, he may sue for damages. Letters written by lawyers often encourage creditors to modify collection tactics and put extra effort into debt settlement negotiations.

Creditors may sue to recover bad debt funds. This can be very costly for consumers and usually puts a halt to settlement negotiations. Sometimes, a lawyer for the debtor will file a motion to dismiss a lawsuit. When this legal maneuver is successful, it is usually because the creditor or collection agency does not have the required paperwork to back up their claim.

Experienced debt negotiation attorneys are skilled at assessing chances for successful debt settlement. They will respond to questions with easy to understand answers. A successful debt reduction program is almost always preferable to legal action. Reputable companies may be found online. They provide counseling services and options such as debt consolidation, debt management plans, debt reduction plans, and legal debt settlements. Consumers have an opportunity to become debt free in a reasonable period of time.


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