Do you want to dissolve your debts through a legitimate debt settlement program? If you do, then there are some important things to keep in mind before hiring a bankruptcy law firm. Remember that when you’re part of the creditor committee, you can hire a bankruptcy law firm on your own to represent your committee in court without ever paying a dime out of your own pocket. But this is not always the case.
It’s quite common for people who are already indebted to file for bankruptcy protection not only because they believe that they cannot handle it themselves but also because they just don’t have any way out. And there’s nothing wrong with wanting to be rid of your debts by yourself. But there are things you should think about before you do this. If you’re thinking about filing for bankruptcy protection yourself, then you better make sure that you’ve got the right legal services on your side.
Some creditors don’t agree with the debtors’ negotiation offers. If this is the case, the court can issue some sort of enforcement actions, which will force your creditors to accept your offers. Some creditors may agree to settle for a lower amount than what you ask, and some may refuse outright. A bankruptcy law firm that has experience dealing with these kinds of cases can prevent your creditors from doing anything that could negatively affect your credit history.
Bankruptcy lawyers that work on behalf of their clients in chapter 7 bankruptcy cases deal with all sorts of creditors. One of these creditors is your lender, which has the option of either agreeing to settle your accounts for a fraction of their total debt (known as a payment plan) or foreclosing on them in order to recoup what it can. Foreclosing involves not just physically taking your property but also your sources of income, which include your home and/or car. So if you’re dealing with a foreclosure action, your bankruptcy law firm may advise you to contact your lender personally in order to negotiate a payment plan.
Another creditor, that is not uncommon in chapter 7 bankruptcy cases is collection agencies. Collection agencies purchase your outstanding debts at auction and then try to coerce you into paying them off. This is usually not a very pleasant experience for you, so most creditors will be willing to reach an agreement just to avoid having to go to court. In order to do this, they’ll work with a collection agency that is represented by a bankruptcy attorney. Most debtors will choose to work with a collection attorney because it’s much easier to get them to accept a settlement than it would be for them to go it alone. Bankruptcy attorneys have extensive experience in dealing with creditors in this kind of situation. Learn more about Phoenix bankruptcy attorney their other services by visiting their official sites.
Your bankruptcy attorneys can also help you deal with the Creditors Association of America. The Creditors Association has many strict rules when it comes to collecting payment from consumers who are not in a financial crisis. Many creditors become bankrupt, and this group represents all of their interests. Bankruptcy attorneys can give you advice on whether or not you can use the services of a creditors’ association.