Should You Hire a Lawyer or Use a Debt Settlement Company

There may come a time when you’ll need to choose between hiring a lawyer or using a debt settlement company to resolve financial obligations. Both options have distinct advantages, however there are situations in which one strategy can be more effective than the other. 

While attorneys are the natural choice when it comes to certain legal issues, using one for debt negotiation can be overkill. 

Here’s why.

Debt Settlement and Legal Strategies Are Different

In most cases, a person who specializes in dealing with debt every day is in a better position to advise you when it comes to getting out of debt — and staying out of it. 

If the situation is one in which you’ll need to file for bankruptcy protection, the attorney is likely to be your best partner. But when it comes to negotiating debt settlements, debt relief professionals deal with collections agencies all the time. Odds are, a truly successful one already knows the right person to go to at the company you owe. This means they can get a proposal put together sooner and in front of the right person more efficiently.

Differing Fee Structures 

Most lawyers bill by the hour. Meanwhile debt settlement firms charge a percentage of the amount they save you. In other words, you pay a debt relief company for results. A lawyer will bill you regardless. What’s more, if the lawyer has no contacts at the company with which you’re trying to reach an agreement you’ll pay by the hour while they figure out to whom they should be talking. 

Moreover, you’re likely to need help developing an ongoing debt management strategy so you can stay out of debt. Most lawyers are unfamiliar with this. As a result, you’ll pay them to bring in an expert to help you in this regard. That’s more money out of your pocket at a time in which you’re trying to cut your expenses. Meanwhile debt settlement professionals are well trained in this area and do it as a matter of course. 

Lawyers typically want some up-front cash to take you on as a client as well. Meanwhile, the law prohibits debt settlement firms from charging you for their services until they’ve negotiated settlements for you. In other words, you’ll pay when they perform. You won’t owe them if no settlement is reached. Lawyers exact payment for their services, whether they are successful or not — and there are no guarantees when it comes to debt settlement.  

Specialists Offer Personalized Service

Where that lawyer is likely to be juggling many different types of cases, a debt settlement agent will be focused on settling debt each and every day. Moreover, when you’re assigned to work with one, they’ll take the time to get to know your situation intimately and — by extension — you too.

You’ll be assigned to one person who will work specifically toward getting you the best possible outcome because again — they will only be paid if they’re successful for you. Meanwhile, with a regular caseload to handle in addition to your debt problem, that lawyer might overlook key details, get numbers confused or even miss meetings with debt collectors. 

Now here, let us hasten to add we’re not trying to characterize lawyers as irresponsible in this regard. There are some hard working attorneys out there who do care deeply for their clients and always put forth their best effort. 

However, it’s better to have people working in their own lanes, especially when it’s your financial future on the line. When it comes to deciding should you hire a lawyer or use a debt settlement company to deal with your debt — and help you avoid creating more — you’re likely to be better off going with the people who work in this area every day.