TEXAS DEBT SETTLEMENT ATTORNEY
WHAT IS DEBT SETTLEMENT
Debt settlement may be a great alternative to bankruptcy for many people. Debt settlement is a process where your debt settlement attorney negotiates the debt with creditors and debt collectors. The goal of the attorney to reduce the debt by about 40-50% on average from the total balance, work out a manageable repayment plan, and then negotiate that the removal of the negative and derogatory account on your credit reports known in the industry as a tradeline deletion or tradeline suppression.
HOW DOES DEBT SETTEMENT WORK?
First, when you hire a skilled debt settlement attorney then the process starts with your attorney sending out a letter of representation to your creditors and debt collectors. With the sending out of the letter of representation the creditors and debt collectors are required by law to stop contacting you directly. That means no more collection phone calls, threatening letters in the mail, or emails being sent to you. Instead all communication will be directed to your attorney and your debt settlement attorney will work with the creditor and debt collectors’ legal team to resolve your matter.
Second, the next step is that your attorney will send out a debt validation demand to your debt collectors and creditors. Debt collectors then have thirty (30) days to respond back to your attorney with requested documents and evidence to prove up ownership and prove up that balances and reported information is correct. If there are any discrepancies or if the debt collector and creditor does not produce requested documentations within the 30 days then your attorney will send out a second demand letter demanding the debt to be cancelled and the tradeline to be removed from your credit reports.
Third, if the debt collector or creditors refuse to cancel the unverified debt and continue credit reporting and debt collection activities then your attorney will discuss with you your options regarding filing a debt collection violations case under the Fair Debt Collection Practices Act (“FDCPA”) or the Texas Debt Collections Act (“TDCA”).
Fourth, if your attorney is not able to find a violation of the FDCPA or TDCA and all documents appear proper then your attorney will engage in debt collection negotiations to reduce the amount of the debt and negotiate a deletion of the negative credit reporting from your creditor or debt collector.
Fifth, once an agreement in principle is reached your attorney will then draft a debt settlement contract with the debt collector, you will review the agreement to make sure it covers everything you wanted in a settlement and then when all parties sign the agreement, you will then start making payments on the payment plan and resolve your debt.
How Much Does it Cost to Hire a Debt Settlement Attorney?
We charge a flat fee based on the amount of the debt.
|Amount of Debt:||Flat Legal Fee:|
|Less than $2,000||$499|
|over $50,000.01+||Call For Pricing|