You may have seen the late night infomercials or radio ads from companies who can claim they will reduce your debts by up to 75%. These commercials are put on by large nationwide debt relief companies. For many families burdened by debt, this sounds like a great solution. Before you make a decision, I advise you to read this article and do your research. If you hire a 3rd party to represent you, you should meet them in person and always deal locally. Before you start thinking about a Debt Settlement company, I suggest you contact a reputable Bankruptcy Law Firm who offers a free consultation. Before meeting with the attorney you should ensure the firm operates a debt settlement program and a bankruptcy practice. If you meet with an attorney who only focuses on bankruptcy, you may not receive meaningful advice on other options. The attorney will provide information on the costs of each debt solution (settlement or bankruptcy) as well as the implications of each. If you are a better candidate for a chapter 13 or chapter 7, the attorney will advise you on how a bankruptcy will affect your credit and how long it takes to recover. If you prefer to settle your debts, a Law firm should handle your settlement.
Creditors do not have to communicate with Debt Settlement companies and you will continue to get harassing calls from the creditor if you use a national debt settlement company. If you use a local Law Firm to settle your debt, the calls will stop. In some cases a creditor may pursue a lawsuit against the clients of debt settlement companies; at which point the company will tell their client to go hire an attorney. While there have been some improvements in regulations which govern Debt Settlement companies, it is still the Wild West out there. Debt Settlement is not always the best solution for everyone. It is important that you get a consultation with a local law firm because there may be more appropriate remedies available.