When considering debt relief, debtors are offered a few potential solutions. The first and most affordable is to approach creditors by yourself merely. This may be a good option if it’s possible to repay what is owed without the formality of a repayment plan. The lighter the paperwork, the better an idea it might be to confront creditors on your own. On the other hand, if bankruptcy is involved, the likelihood of success increases enormously with the help of legal representation. Most individual “pro per” cases are dismissed immediately for errors such as missing documents, incorrect information or even illegible handwriting.

Another option for debt relief is to contact a debt settlement company. These companies will offer to call creditors for you, but their services are not free. They are for-profit companies and will charge you during the period that you aren’t being assaulted by creditors, ultimately increasing what you would have already paid via interest costs. Debt settlement companies can be good mediators between the debtor and creditor, but they will not offer legal advice and cannot support your case in the event of a lawsuit from a creditor.

One final option is to hire legal representation. Attorneys can serve as your defense in the event of a lawsuit or judgment, and they also offer some unique benefits outside of court. Attorneys are invaluable to the bankruptcy filing process, organizing and simplifying whenever necessary. A reasonable attorney will inform you of all options available to you within your unique situation, highlighting ideas that you may not have considered and eliminating ones that could be a waste of time. For instance, in the event of a foreclosure, an attorney will inform you of your rights and help you make sound decisions concerning your living situation. Attorneys can also help you protect your assets, telling you of properties you can exempt. When searching for an attorney, make sure that they are not affiliated with debt settlement companies. Their connection with your case may be a front to collect service fees.

A particularly good instance to hire an attorney would be when seeking tax debt relief. Tax debt is very challenging to find comfort from; it is one of the specific kinds of debt that cannot be discharged by filing bankruptcy and making a case against it by oneself in a court of law is an enormous task. Tax attorneys can be extremely helpful for obvious reasons, not the least of which is an attorney-client privilege, which is something that accountants cannot offer. Tax attorneys are typically well-rounded and can also provide more advice on matters like bankruptcy and foreclosure than an accountant could. Their knowledge of the U.S. tax code can make them an invaluable asset in tax negotiation, which is an intimidating prospect without legal representation.

Debt attorneys also work in the field of debt consolidation. If you have acquired a number of loans with high individual interest rates, it would be in your best interest to find someone who can help you consolidate those loans into something more manageable that limits interest. Debt attorneys can accomplish this via a debt settlement loan that combines multiple high-interest loans into one. Beware of companies that claim to be able to settle debts without meeting face-to-face with you. This turns your finances over to strangers, adding a layer of risk to a process that is by no means guaranteed to work out to your benefit. It is always a better idea to personally contact an attorney to consider your options rather than relying on a debt settlement company.

After examining all the options, we hope you are now able to make an informed decision in approaching debt relief. If you are seeking debt relief in Los Angeles and feel that hiring representation is the best option, let the attorneys of Vaknin & Agai Law work on your behalf. They will help manage your situation and set you on a path to debt-free living.