Many people find themselves dealing with unmanageable debt. This situation is stressful to the debtors. It is often caused by fiscal imprudence. However, problems such as loss of one’s job, emergencies of a medical nature as well as family imbalances can also cause one to fall deeply in debt.
Heavily indebted people experience high payments for loans, mortgages or credit cards. As a result of these draining payments, one is forced to live from one paycheck to the other. This reduces the quality of life significantly. Thankfully, there is a solution for crippling debt. It is known as debt relief.
What is debt relief?
Debt relief is the process through which one’s debt is rearranged for the purpose of relief. There is a myriad of ways through which debt can be reorganized. Some of these methods result in the complete cancellation of debt while others result in partial cancellation of debt.
This type of relief can be executed in such a way that the outstanding debt is reduced. Also, the interest rates on the loan can be reduced. This helps the debtor to pay off their loan easier and in a shorter time. Moreover, the duration of the loan can be increased for the purpose of relief.
The types of debt relief available today
Debt relief takes a number of forms. They include:
- Settlement of the debt
- Consolidation of the debt
- Management of the debt
Does a debtor need legal representation in debt relief?
In order for a debtor to secure debt relief, they should hire a debt relief attorney. Also known as a debt relief lawyer, this is a legal representative who helps a debtor to secure debt relief from their creditors. Even though a debtor can negotiate this relief on their own, it is best to hire this lawyer. The skills and expertise that the attorney brings to the table increase the chances of success.
Who is a debt relief lawyer?
This is a type of attorney who focuses on debt relief law. They also specialize in the law that has to do with bankruptcy and debt settlement. In their line of work, this type of lawyer can provide a variety of services. These include:
- Debt relief
- Conduct proceedings to settle credit card debt
- Negotiations to reduce the debt balance
The responsibility of a debt lawyer in debt relief
The debt relief lawyer plays a key role in the process. They are the legal representative of the debtor in all proceedings. By taking up this role, the lawyer can meet with creditors and negotiate on behalf of the debtor. The creditor can also communicate with the debtor through the debt relief lawyer.
The objective of the debt relief lawyer is to secure a complete elimination of your debt. However, they may secure a debt reduction. In such a case, the lawyer will assist their client to open up a trust account for repaying the debt. After that, the debtor will make only one payment in person and the lawyer will take over all proceedings until the debt is repaid.
There are many approaches to debt relief. Some are easier than others. However, they all seek to accomplish one thing; to eradicate your debt.
Lavender Blake is a debt relief consultant. She has fifteen years of experience in the field. She takes great pleasure in teaching people the legal ways of consolidating their debts. Visit her website to know more about debt relief.