Debt relief attorneys typically help their clients manage, reduce, or eliminate their debt. The laws that govern debt reduction strategies differ from one jurisdiction to the next. As a result, debt relief lawyers’ activities can vary greatly depending on the laws in the area where a debtor lives. A debt relief lawyer may specialize in negotiating partial or total debt forgiveness on behalf of his or her clients in many locations. In some cases, a lawyer of this type may recommend bankruptcy as the best option for dealing with unmanageable debt.
Many people who are unable to manage their debts may try to negotiate with creditors on their own. Despite the fact that this strategy works for many people, some people are hesitant to approach their creditors. They may then seek the help of debt relief lawyers who have dealt with similar situations before. A communication from an attorney may be more responsive to creditors than a communication from a debtor in some cases. In other cases, the attorney is simply less emotionally involved in the case as a third party, and thus better able to negotiate an acceptable compromise for both the creditor and the debtor.
Working with debt relief lawyers has the advantage of being able to advise creditors on their legal rights and options. Some debtors, for example, may be so deeply in debt that they will never be able to repay their creditors. Debt relief lawyers are often in a good position to assess a debtor’s situation and suggest bankruptcy as a way to get out of debt and start over. These attorneys may also represent a debtor in court against collection agencies that are harassing or threatening legal action against them.
Some debt relief lawyers only deal with bankruptcy and do not negotiate debt settlements. Because bankruptcy laws can be complicated, many people prefer to work with bankruptcy attorneys to make the process go more smoothly. When trying to figure out what to do about their unmanageable debt, financial experts sometimes strongly advise consumers to seek advice from multiple sources. They will warn debtors against relying solely on debt relief lawyers’ advice when it may be possible for the consumer to negotiate a repayment plan through credit counseling or by speaking directly with his creditors.