Georgia Debt Negotiation Myths and Facts
For those who may not know Debt settlement and Debt Negotiation are one in the same. Debt Negotiation is the action performed and the result is a Debt Settlement.
Myth: Debt settlement companies have the ability to stop collections calls? Fact: The reality is debt settlement companies do not have the legislative power to stop the creditors/collectors from calling to collect a past due debt. Most will advise to issue cease and desist letters but this is something that can be done without the assistance of a debt settlement company. Only Georgia debt settlement law firms have the legal capability according to the FDCPA (Fair Debt Collections Practices Act) to legally put an end to collection calls. Myth: Debt settlement is legal in all 50 states? Fact: This is true it is legal in all 50 states; however the problem is the majority of companies aren't correctly administered to be operating legally in all 50 states. Thus making it so important to retain a Georgia debt settlement law firm that can operate within the legal parameters of your state. Myth: Debt settlement companies offer the same service as law firms? Fact: This is far from truth, there are major advantages that law firms have over debt settlement companies. One being a law firm can by law still negotiate a debt after a collector has summoned their client to court, a company cannot. Some companies might say they can but they are not operating under the law, which very well spell financial disaster for you if the company gets shut down. Myth: Debt settlement dosen't negatively effect your credit report? Fact: There is simply no way to avoid the reality that your credit score will be adversely affected by using a debt settlement program. Because the debts must be in a past due status for the creditors to be in position to negotiate a settlement. With that being said the debtors who have already fallen behind will not incur any additional damage to their credit reports from this process, in fact once the settlements begin getting reached the credit report will rebound and be positively affected. For people who are up to date on their bills the beginning of the debt settlement process will negatively effect their score; but let me state this again, once the settlements get reached and the debts are showed as paid it will have a positive rebounding effect on the credit. Myth: The creditors cannot sue you once you are being respresented by a Georgia debt settlement law firm? Fact: This is a false myth, the truth is at anytime a creditor can sue you whenever they please after you stop making your monthly minimums, no matter if you have hired a Georgia debt settlement company or retained the assistance of a Georgia debt settlement law firm. There is however something a law firm can do that a standard company cannot; and that is still continue to negotiate a settlement after the summons has been issued. This is a major benefit the law firm has over a company! The vast majority of times a law firm will be able to work out a settlement outside of court, and this is within their legal power. A debt settlement company will simply leave you holding the bag and cannot legally offer you any assistance at this point! Myth: The debt settlement industry is regulated by the Federal Government? Fact: Myth: Debt settlement is simple and can be done on your own without assistance from a company or law firm? Fact: This is partially true, debt settlement can be done on your own, however it is not simple by any means; taking this course of action is not recommended for numerous reasons. One big reason is that each and every creditor is different in terms of how negotiating settlements is handled. Only an experienced negotiator from an established firm will have the knowledge of all the creditors and how to handle each one properly. Another huge benefit is how creditors/collectors treat representatives from a law firm as opposed to the debtor themself. They know they cannot get personal and nasty with a law firm and that their scummy collection tactics will not work at all! In addition an established law firm with a sound working knowledge of the laws within Georgia will have all the paperwork done correctly; a big mistake many debtors make when attempting debt settlement themselves is not obtaining the correct paperwork, thus getting themselves even deeper into trouble!
Myth: Whatever debt settlement company offers the lowest fees will be the best to choose? Fact: The old saying “You get what you pay for” relates tremendously to the debt settlement industry, many debtors go about looking at this process like purchasing an automobile and look for the cheapest possible company, this is a big mistake! Not all companies or law firms offer the same service and benefits. In addition you must evaluate a company or law firm based on its previous performance and history, not just the fees. Myth: The most ideal place to research a debt settlement company is with the Better Business Bureau? Fact: The BBB is an organization with no teeth that cannot bite, meaning they cannot do anything to help out unsettled clients other than report on their website that the organization is performing at an unsatisfactory level. But with that being said it is an extremely good sign if the organization is listed with an "A" rating and if the company has an "F" rating this is a glaring warning sign to not do business with that particular organization. Another issue to look at is the number of complaints and how many of those complaints were resolved to the clients liking; and also to look at the nature of those complaints. Complaints about how fees and money transactions are handled are the biggest reg flag possible.
|