Debt relief is the process of rearranging debt so as to provide the debtor with relief. This process can be conducted in various ways and can offer full or partial relief from debt. It is a method that is often performed as an alternative to filing for bankruptcy.
This process can be implemented in various ways. One of these is where the outstanding amount in the debt is reduced or eliminated completely. Another method is where the interest rates on the current loan is reduced. This helps the debtor to pay off the loan easier and faster. In addition to these methods, the duration of the loan can be extended so as to give the debtor more time to pay off their debt.
When do creditors accept debt relief as a solution?
Debt relief is pursued as a solution in cases where the consequences of debt default by the debtor can severely affect the creditor negatively. Such a case is where the amount owed is too much. This form of debt solution is applied for various types of debtors. Examples of these are; individuals, municipalities, large corporations and even nations. Part of this solution is educating the debtor so as to know more about debt relief.
Legal aspect of debt relief
To secure debt relief, a debtor should consult a debt relief attorney. The debtor can file for the relief and negotiate on their own. However, the chances of securing relief in this way are very slim. Thus, it is best to go with a debt relief attorney.
This is a lawyer who specializes in bankruptcy, debt relief and settlement law. With their skills and experience, your chances of securing some relief are very high. This type of lawyer can provide a wide range of services. These include:
- Debt relief
- Debt balance reduction negotiations
- Settling credit card debt
The role of an attorney in debt relief
In the process of relief, the debt attorney represents you in the meetings between you and your creditors. The attorney works to negotiate with these creditors to reduce or erase your debt. In the case where the attorney negotiates for the debt to be reduced, all that you need is to make one payment and the lawyer takes care of the rest for you until the debt is paid off.
In a case where you get a debt reduction, the lawyer will help you to arrange a trust account that will hold your payments and is accessible to the creditors. Your lawyer also has complete access to the account.
When vetting a debt relief attorney to work with, you should check their records with the state law authorities to see if they are certified. Moreover, you should look them up with the agency for client protection in your state. This is so that you do not get defrauded. Debt relief is an effective solution for debtors drowning in debt. If you are stuck in debt wondering what to do, consider getting debt relief.
James Calloway is a debt relief consultant who has over 7 years experience in the field. He is well known for helping people get out of debt without going to the courts. To know more about debt relief, visit his blog here.