When you are struggling to pay back the money you owe to creditors and lenders, you may be considering filing bankruptcy. But, if you have some money to pay lenders back, an attorney may recommend that you attempt to settle your debts for less than they are worth, rather than filing bankruptcy. This is something you can do one your own or you can hire a lawyer to help you. There are many benefits to using a bankruptcy lawyer for this task. Here are three of those benefits.
A Lawyer Can Help Secure the Lowest Settlement Amount
One of the benefits of hiring a bankruptcy attorney to negotiate debt settlements is that an attorney is often able to negotiate rates that are lower than you can negotiate on your own. First, an attorney knows how low lenders and creditors can go, which is information you may not know. Secondly, when an attorney calls, lenders know you may be a step away from bankruptcy. Most get more money with debt settlement than they do when you file bankruptcy, so many are more willing to negotiate if they know a bankruptcy attorney is involved.
A Lawyer Can Negotiate the Removal of the Debt From Your Credit
Another benefit to hiring a bankruptcy attorney to negotiate debt settlements is that they can negotiate other terms of the settlement, aside from just money. Most people do not realize that when you settle a debt, it can negatively impact your credit report. An attorney can negotiate the removal of the debt from your credit report altogether.
You Are In a Position to File Bankruptcy if the Lenders Won't Settle
The last benefit to hiring a bankruptcy attorney to negotiate your debt settlements is that you are ready to file for bankruptcy if your lenders won't settle. Not every lender will agree to settle with you. If the majority of your lenders will not negotiate your outstanding debt, filing for bankruptcy may be the best option for you. If you are already working with a bankruptcy attorney, they can quickly move from debt negotiations to bankruptcy filings to help stop debt collector action quickly.
If you are having trouble paying back the debts you owe, there are many debt relief options that can help you. A bankruptcy lawyer can evaluate your financial situation and debts and help you determine which option is ideal for you. Stop drowning in debt. Contact a bankruptcy attorney today to find out about the options available to help you get back on your feet financially.Share