Our office offers debt settlement relief services when negotiation is better than bankruptcy. However, debt settlement is not something you want to do yourself. For one reason, when you call the creditor the call is recorded so your admission that you owe the debt can be used against you. Collectors are only interested in receiving payments from you.
You must understand that collection staff records your phone conversations as admissions that you owe the debt and proceed to question you to get more information to use against you. So, as you can see, if you talk to a debt collector, it only makes the situation worse.
Again, they record everything to use against you later. However, by using an attorney that knows the law, the creditor knows you are serious about offering them a settlement. Then, if they fail to negotiate in good faith, we will help you file bankruptcy or even sue them back.
Debt Settlement Relief • Louisville Kentucky Attorney
⎆ Why use a debtor collection attorney instead of a service.
We have been defending debt collection cases and settling debts since 1988. Be wary of debt settlement relief companies that require that you pay them money which should be paid to the creditors. Often these companies operate just like Ameridebt which took their client’s money and then filed bankruptcy.
Debt settlement agencies often keep your funds and leave you still owing to the creditors. Kentucky’s Debt Adjusting law requires these companies to register with the Kentucky Attorney General due to the high level of fraud and how little they deliver. Some debt settlement companies claim to be law offices but aren’t. But, creditors know which ones to respect.
⎆ Why use an office that also files bankruptcy cases?
Far too often law firms only offer bankruptcy as a way of handling debt when debt settlement would have been better for the client. We take about 2 hours in our initial interview with you to learn your needs and wants. Debt settlement may take more work than filing bankruptcy. However, it saves the important Chapter 7 discharge that you need later which harms your credit less than bankruptcy. It is also helpful because it impacts credit less than bankruptcy making it easier to obtain a 725 credit score. The collector already knows what happens when you use an attorney who is known for his bankruptcy cases.
⎆ When do you want to use bankruptcy?
Bankruptcy is a far more powerful tool than debt settlement relief. But debt settlement relief may allow you to keep property that bankruptcy will not. Bankruptcy is a public court record and a blemish on your credit report that will deny you a mortgage for two years. Bankruptcy may improve your credit if your credit is already damaged. Every case is different. Debt settlement does not have to be a public record like bankruptcy and may not impact your credit score at all. The account may have been disputed and may have never been overdue. If you only have a few creditors with large balances, debt settlement becomes a faster and more feasible option that avoids the courts and that affects your business less.
⎆ Never threaten a debt collector with bankruptcy.
When you use a bankruptcy attorney to negotiate your debt settlement relief the tone of the negotiation and the change in attitude by the lender is often obvious. The creditor has to negotiate in good faith or face the possibility that you will file bankruptcy. Creditors already know you are serious when you use a bankruptcy attorney. Therefore, there is absolutely no need for threats.
Instead, the creditor suddenly knows they must settle or else. Even if they have sued and placed a lien against your home, they know that their lien can be stripped in bankruptcy. So, they already know their alternatives. When it’s handled correctly, debt settlement becomes something in their best interests. So, if you are considering a debt settlement, please call us before proceeding.
Resources for Bankruptcy
Louisville Kentucky Bankruptcy Forms
Kentucky Fair Debt Collection Practices Act and Contempt • Video
Debt Settlement Company vs Debt Settlement Attorney
Options to Avoid Foreclosure with Bankruptcy
What Bankruptcy Trustees Look for in Audit Documents
Contact us to see what defenses you have or to negotiate with the debt collector. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.
