Collections Debt Settlement – Pre-Litigation Debt Settlement, often referred to as a debt settlement plan.
If you have accounts in collections and creditors are making collection calls and or letters it is important to get help from a qualified debt settlement attorney. An attorney May help:
- Ensure your rights are protected. Often creditors violate the Fair Debt Collection Practices Act (FDCPA) when attempting to collect debt. If a creditor or debt collector has violated your rights, you may be entitled to compensation and or debt cancellation.
- An attorney can help to negotiate a valid, legally binding Settlement Agreement that holds the creditor’s feet to the fire and resolves the account.
- Prevent a lawsuit from being filed against you, which may result in post judgment collection activity, such as: Freezing and levying of bank accounts, Writ of Execution, which typically includes Constables being sent to the defendant’s house to inventory what can be taken to auction to satisfy the deb, and Liens being placed on property.
Debt Settlement Companies
On average, the cost of hiring a Debt Settlement Company is typically around 20%-25% of the debt. However, because of the complicated payment structure and the way Debt Settlement Companies escrow funds, it can be difficult for debtors to know how much of their monthly payment is going toward the debt and how much is going toward fees.
Many debt settlement companies often go out of business and leave their clients in a bad situation. This may result in lawsuits being filed and judgments being rendered against the client. Many times, the debt settlement companies end up misappropriating the escrowed funds and the client never recovers what was supposed to be held in escrow to pay creditors.
We often have clients hire us after first using a Debt Settlement company and having the above results, or lack of results.
Debt Settlement Companies often receive notice that their client is being sued and fail to let their clients know. This typically results in the client losing a lawsuit and Post Judgment collection activity.
Some Debt Settlement Companies outsource the legal work to an attorney; however, the client typically does not get to choose the attorney and is at the mercy of the debt settlement companies’ choice of counsel. Many of these attorneys are not experts in the field of law but are attorneys who are looking for contract work. Many of our previous clients have complained of never having an opportunity to speak with their attorney and find out about negative results after the fact.
Hiring Case Law Legal for Debt Settlement
On average the cost of hiring Case Law Legal to handle Debt Settlement is between 10%-15% of the debt. This typically depends on the dollar amount of the debt in question, if it is an individual account or a calculation of the total dollar amount of the debt and the number of accounts if it is a debt settlement plan which includes multiple accounts.
We DO NOT ESCROW FUNDS, so our clients never have to worry about trying to determine how much of their monthly plan payment is going to our fees or to the escrow account to pay creditors. This also means our clients will never have to be afraid of misappropriation of escrow funds, or us going out of business and them not getting their escrow funds back. The only thing our clients pay to our firm is our fee for handling their debt settlement.
We do not outsource the legal work to a random attorney. We are a law firm and will handle any lawsuits that are filed for accounts included in the debt settlement plan.
Our clients often opt to include multiple accounts in the debt settlement plan because we offer a discount of 10%-25% when we handle multiple accounts for our clients.
If you are receiving collection letters or phone calls, or just know that you have some credit accounts that need to be resolved, reach out to us today for a FREE Consultation.