Debt negotiation – The legal process and its importance

The debt negotiation which is also known as the debt settlement helps you in paying off debts because it reduces the outstanding debt amount. Though debt settlement does not involve anything that is directly legal, there are some legal overtures added to this process. When you sign on the terms and conditions of a credit card, it is considered to be more of a legal agreement, so the settlement agreement too indirectly is a legal one.  So, if you are in debt and if you think that it won't be possible for you to settle the debts of your own, you can try to get the help of a debt negotiation law firm.
The legal part of debt negotiation
In case of the debt negotiation, the counselor of the law firm is required to negotiate with your creditor so as to lower the outstanding debt amount. Now, as a lawyer, the counselor is more knowledgeable about the ways to handle the whole process. They are more apt as to how the creditors can be made to agree to the settlement request. This helps them in getting the outstanding debt amount settled as per your affordability.
The negotiator may also be able to get the settlement agreement in place after the negotiation is complete. This is going to help you in retaining a proof of the agreement done. Otherwise, certain legal problems can arise at a later date. The creditor can sell of the debt to a collection agency. If you don't have proof of the agreement and also the payments, you won't be able to prove that the debt had got settled and that you have paid off the debt.
Moreover, the collection agency can also sue you or the debt claiming that it has still not been paid. In such situations too, the legal advisor can help in doing away with the problem. If you go to a legal advisor, it is they who will do all of the negotiations and so they will know how to handle such a legal situation too.
Other than this, the advisor will also know if the Statute of Limitations or SOL on debt you are trying to settle has expired. This will help you in doing away with the problem of settling that particular debt.
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