Debt Reduction Law Center

A debt reduction law center can help the financially troubled person get out of debt, pay their creditors and avoid bankruptcy. When a person begins this process they can expect the lawyers to work on their behalf and deal with creditors. If a person is beyond being able to control finances with a consolidation program, they should look into a financial advisement program before considering bankruptcy.

These programs work with people who are behind on their bill payments by several months. Most people who work with a debt reduction law center could not complete a consolidation program or could not make the payments of a program due to their outstanding debt. While working with debt reduction law centers is really just one-step away from declaring bankruptcy, most advisors will do everything they can to prevent the consumer from having to take that drastic step.

When a person chooses to work with a debt reduction law center, the lawyers then serve as a mediator between their client and their creditors. The role of debt reduction law centers is to negotiate a reduction in the total amount the client owes to each creditor. Not only does this save money for the client, but also insures the creditor will get at least a portion of the amount repaid. Lawyers may choose one of three options for settling the client's obligations: negotiate for a reduced amount; settle for payments on a reduced amount; or extend a negotiated amount until the consumer has sufficient funds available.

There are some negative factors to working with a debt reduction law center that a person should be aware of before they proceed with this course. Regardless of what the organization takes to settle a client's obligations, the client's credit reports will read "settled in full" instead of "paid in full," implying that the person was unable to pay the full debt, but negotiated a smaller payment. Therefore settling for a reduction can negatively impact one's credit for 7-10 years. However, working with a lawyer still is a better option than filing for bankruptcy. While settling for a reduced obligation is recorded only on the consumers credit report and is therefore not public record, a bankruptcy is public record.

If attempts at credit counseling and consolidation have failed, then working with a lawyer may be the next step. "No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon." (Matthew 6:24) Because God's word instructs people that they cannot serve both God and wealth, it is therefore important to consider all options to pay off one's obligations swiftly. Working with debt reduction law centers at least can give a consumer guidance regarding their options.

Source: http://www.christianet.com/debtreduction/debtreductionlawcenters.htm

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