7 Reasons why you should chose a lawyer instead of a regular debt settlement company to settle your debts.

7 Reasons why you should chose a lawyer instead of a regular debt settlement company to settle your debts.

By Shah Peerally, Attorney at Law

Phone 510 742 5887

With the downturn in the economy, many people are unable to pay their debts. One good option is to look into a bankruptcy. However, for many reasons some people will not be ready to pick the option of a bankruptcy for personal reasons. The other reason many will not opt for bankruptcy is that they clearly do not qualify for it. This does not mean that these people do not want to get rid of their unsecured debts. Financial companies are usually keen to settle the debts provided you can effectively negotiate the settlement especially in times of hardship. To this end, many companies are offering the option of a debt management or debt settlement. While there are many genuine companies dealing in debt management , debt consolidation or debt settlements, others are simply taking advantage of already hurt consumers. Our law firm has made it a duty to help the people who are hurt with debts but who are not willing or are not able to file bankruptcy. We have tried to compile in this guide at least 7 (seven)reasons why an attorney negotiation is better than just using a regular debt relief company:

1. Banks and credit card companies are using lawyers to collect their debts; it is obvious that you are represented by counsel to defend your interest;
2. Under the new FTC rules many debt settlement companies have been forced to stop operation, only few lawyers are now still doing debt settlements. This means your ability of representation is limited to only few legal representatives,
3. If a bank files a lawsuit against a debtor, unless you file a bankruptcy you will need legal representation by an attorney licensed to practice law in your state;
4. Lawyers are trained in the art of litigation and negotiations. A lawyer can negotiate within the legal parameters to settle your debt;
5. Many financial institutions are now refusing to deal with debt settlement companies branding them as “third parties”. However a licensed lawyer is allowed to represent a client to protect the legal interest of the debtor;
6. A lawyer can file a “Cease and Desist” (under the Federal Fair Debtors Collection Practices Act) letter to force the creditors to stop calling the client personally. This can prevent harassment and stress for the client at their home or at their work places. Violation of the “Cease and Desist” letter can amount to penalties on the financial institution; and
7. If a financial institution obtains a judgment against a debtor, the former can file necessary legal papers to garnish your assets, even your checks unless you are judgment proof.

The above are but few reasons to hire an attorney to assist you in negotiating your debts. We always advise the clients to call for a free consultation before they make a decision on whether to file a bankruptcy or settle your debts. For more information please call us on 510 742 5887 or visit us on www.yourdebtsettlementattorney.com

The information contained in this article is provided for informational and educational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this article, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s state.

Shah Peerally is an attorney licensed in California practicing immigration law and debt settlement. He has featured as an expert legal analyst for many TV networks such as NDTV, Times Now and Sitarree TV. Articles about Shah Peerally and his work have appeared on newspapers such as San Jose Mercury News, Oakland Tribune, US Fiji Times, Mauritius Le Quotidien, Movers & Shakers and other prominent international newspapers. His work has been commended by Congress women Nancy Pelosi and Barbara Lee.  He has a weekly radio show on KLOK 1170AM and frequently participates in legal clinics in churches, temples and mosques.


For updates follow us onYoutube, Radio, Facebook, Twitter and LinkedIn.  Shah Peerally Law Group PC deals in immigration law  - www.peerallylaw.com and www.immigrationlegalblog.com

Attorney Shah Peerally also deals in debt settlement. For more information call us on 510.742.5887 and visit us on www.YourDebtSettlementAttorney.com.

Information provided above is for educational purposes only.  One should not act or refrain to act solely based on the information provided.  You should consult an attorney to assess your case before proceeding.

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Disclaimer: The views expressed on this website are not necessarily those of Shah Peerally or his law firms. No attorney client relationship is created by reading any message or articles posted on this blog.