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Debt Settlement

Bankruptcy isn’t always the best option when dealing with overwhelming debts. An effective debt settlement plan can help slash your total debts by as much as 50-80%. The attorneys at Murff Law Offices have helped hundreds of Utah families avoid filing bankruptcy by negotiating affordable debt settlement plans.  In some cases, creditors may require a lump sum payment when agreeing to a heavy discount, and in many cases creditors are agreeable to both discounting the balance and accepting monthly payments. Because every case is different and there is no once size fits all solution, it’s important to learn and understand your options before making any major decision regarding your debts.

If you’re struggling to pay your debts, you may be wondering if you should hire a lawyer or a debt settlement company to help you negotiate with your creditors. In most cases, it’s best to avoid debt settlement companies altogether. Many debt settlement companies charge large up front fees and make promises they are unable to keep. Some debt settlement companies even masquerade as law firms, so like anything else in life, it’s important to do your homework when it comes to hiring professionals. But an experienced and well-reviewed attorney can save you thousands or even tens of thousands of dollars with debt settlement. The attorneys at will Murff Law Offices aggressively represent debtors and seek the lowest possible settlements.

What Is Debt Settlement?

Debt settlement is the process of working out an agreement with your creditors for less than the total balance owed. Most creditors (especially collection companies) are very open to settling debts, and with the right approach will often reduce the total owed by 50% or more.

Why are Debt Settlement Companies a Bad Idea?

Debt settlement companies make constant claims of settling your debts for mere pennies on the dollar. And f you’re current on your monthly payments, they’ll even tell you to go delinquent. Then debt settlements will often tell you to make payments to them so they can build up a reserve fund to take to your creditors and settle your debts one by on. What they don’t advertise though is that meanwhile your credit is trashed, debts are sent to collections, and lawsuits are filed, which is why so many debt settlement company clients end up in bankruptcy. Only, instead of filing an bankruptcy up front and cleanly, clients have paid some companies 4,000-5,000 with no real result.

Why Hiring a Lawyer May Be a Good Idea?

Bankruptcy attorneys are uniquely situated to help debtors settle their debts, because the attorney can call and leverage the prospect of filing bankruptcy to obtain a better deal. If a creditor knows you have already retained a bankruptcy attorney, they understand the threat of you filing is real, potentially resulting in them getting nothing. So many creditors will start to negotiate with an attorney when previously being unwilling to do so.  If you think you need help negotiating a debt settlement or are unsure about whether you should do this, an attorney at Murff Law Offices can provide you with sound legal advice after fully discussing your unique case. Debt settlement companies don’t do this.

A reputable attorney will go over your options and help you understand if debt settlement, bankruptcy, or other strategies will better help you resolve your financial problems. Debt issues are not one size fits all.

How to Avoid Hiring a Bad Lawyers?

You should hire a well-reviewed and experienced local attorney, with convenient offices and friendly staff.  Deciding to file for bankruptcy or debt settlement is a big decision so it’s a good idea to interview at least 2 if not more attorneys before choosing which one will be right for you. There is a vast difference in skills, personality, and experience among attorneys and its best if you can sit down and meet with an attorney before hiring them.

Remember to always avoid hiring a “law firm” that is really masquerading as a debt settlement company. Find out if staff people or the attorney actually does the negotiating, and avoid any law firm that specializes solely in debt settlement as their only practice area. This is a major red flag because bankruptcy will often be a preferable solution to debt settlement, and a firm that only offers debt settlement services is likely to steer you into that option while minimizing practice areas they don’t offer.

Can You Settle Your Own Debts Without An Attorney?

It is absolutely possible to settling your own debts. You do this by reaching out to the creditor, explaining your situation and letting them know unless you can work out an affordable deal you will be forced to hire an attorney. Make sure you get any agreement in writing, and that the creditor agrees not to sell the debt to any other collection company, which could void any agreement you have with one. While it may be possible to settle your own debts, there are many pitfalls and it’s easy to make major mistakes that could cost you thousands. The attorneys at Murff Law Offices will give you straight forward advice during a free consultation, so even if you are considering attempting to settle your own debts, you have nothing to lose by call experienced professionals before you do.

Call or text 24/7 for more information to learn whether debt settlement may be right for you.