If you have been struggling with large amounts of debt, or have been unable to make your monthly payments, you may feel like you are alone. Although this situation can be very stressful, you do have options. One of the best things you can do to avoid liquidating your assets or declaring bankruptcy is to negotiate with your creditors. However, this can be very intimidating experience for many people. This is when a skilled finance attorney can really help. David Soble and his team are knowledgeable and caring attorneys who can negotiate with your creditors for you.
How can Debt Mediation help?
You may feel like talking to your creditors won’t do any good when you are overwhelmed with missed payments, but it’s actually one of the easiest ways to make your debt more manageable. Many creditors will be willing to settle for a smaller sum or will be willing to give you more time to make your payments. There are many different tactics you can use. If there’s been an extenuating circumstance, like a family emergency, that’s been causing the missed payments, creditors may be sympathetic to that and be willing to give you a little more time to get back on your feet. If you have a steady income, you may be able to negotiate a scheduled payment plan that you can afford. If you have assets that you are willing to sell, they may be willing to lower the overall amount of debt slightly for a lump sum payment. Everything is dependent on your individual situation.
Common Forms of Debt
There are many different types of debt and each needs to be negotiated differently. The most common forms of debt are:
Credit card debt: After a certain amount of missed payments, many creditors will be willing to accept a settlement for less than you owe, as it is less costly to them in the long run.
Car loans: Many car loan companies are willing to give you more time on your payments, depending on your situation. Timely communication is key.
Mortgages/home loans: There are many strategies for negotiating real estate debt, however, you will need a real estate lawyer. David Soble also offers real estate law services.
Medical debt: Early negotiation is key with medical debt. You may be able to get a discount on your bill with a down payment or set up a payment plan.
Student loan debt: Student loans can be very difficult to negotiate, but with some expertise, you may be able to convince your lenders to accept delayed payments, giving you more time.
What You Need To Know About Debt Settlement Companies
While you can negotiate with creditors yourself, it is highly recommended that you use a lawyer. Finance attorneys have an extensive knowledge of the laws and regulations surrounding debt and credit usage, and they will be able to use this to your advantage. You have rights as a consumer using credit and your lawyer will help make sure that proceedings are fair and that creditors are not hassling you unlawfully. Lawyers also have extensive experience dealing with creditors. They know what options they will be most likely to settle for and how to get you the best deal quickly and efficiently, so that you can stop worrying about your debt and can work to pay it off quickly.
“Ready to get out of debt?” That is an enticing question that the debt settlement companies usually ask when they call you. Although debt settlement companies claim they can negotiate with your creditors and reduce your debt, it is important to remember this is a risky business, especially for the debtor. Unscrupulous companies may offer a new, lower monthly payment however, the process takes a while . Its only after a relatively long period of time when the companies take your payments and, after collecting enough monies, they then begin to negotiate with creditors. With considerable time having passed without any communication or payments made to the creditors. Creditors are left feeling angry and ignored. Simultaneously creditors report these late payments to the credit bureau and ruin your credit score for years.
Consider speaking with attorney David Soble and his team before working with a debt settlement company.
Things to consider before deciding to hire a debt settlement company.
The expensive, costs and fees. Has a debt settlement company asked you to stop paying your bills? Consider what will happen if you stop paying your bills: you will incur late fees, penalty interest and other charges. Creditors will be angry and likely step up their collection efforts against you.
Debt settlement companies may settle some of your debt initially, but the penalties and fees of past payments will add to the debt and your responsibility.
The effect on your credit score and your future use of credit.
Creditors may bring a lawsuit against you while settlement companies are waiting for an amount they can use to negotiate.
Settling debts results in taxable income. (Make sure you speak with an attorney about 1099-C)
You should avoid doing business with any company that promises to settle your debt if the company:
- Charges any fees before it settles your debts;
- Touts a “new government program” to bail out personal credit card debt;
- Guarantees it can make your debt go away;
- Tells you to stop communicating with your creditors;
- Tells you it can stop debt collection calls and lawsuits;
- Guarantees that your unsecured debts can be paid off;
The good news is that there are several options for people to get out of debt besides hiring a debt settlement company. The most important part of settling your debt is to be proactive! If you miss a payment and have a sense that other future payments cannot be made you should take immediate action.
Sure you can enter into a debt management plan directly with your creditors. However there remains a level of hostility that clients experience from creditors, It’s in these cases an attorney can help negotiate a payment plan with creditors and keep them from contacting and harassing a debtor. Short of filing bankruptcy, debt mediation by an attorney like David Soble is an excellent way to approach creditors.
David is upfront about debt mediation and he strives to settle a client’s debt in a timely manner. The debt mediation process does take time, but when working with a finance attorney like David Soble, who is comfortable in negotiating with aggressive creditors, be assured that you will have peace of mind.
Call David Soble and his team so we can show you how we can help improve on your personal economy.
The American Bar Association lists over 81 legal specialties. So how do you determine which attorney you should work with? When making a decision seek an attorney who is skilled and experienced in the appropriate area of law. Also ask yourself if they seem professional and dedicated. Can you see yourself working with this attorney on future business or personal matters?
Finally, research the prospective attorney. Check their articles, testimonials, white papers, and peer d reviews. Review what other people have to say about working with the attorney. Check online reviews and directories: it will shed light on their legal and business style.
In Metro Detroit, and throughout Michigan, clients entrust David Soble and his Proven Resource team with their biggest investments – reducing legal risks and financial exposure.