If you are considering debt settlement, there are some good reasons to consider hiring an attorney to handle the process. First, certain debt settlement companies have a very bad reputation, while others are outright scams. Working with a licensed, experienced attorney can protect you (and your credit) from unscrupulous companies that take advantage of debtors. Unlike attorneys, debt settlement companies are not required to be licensed. This means that anyone can open a debt settlement firm.

Bankruptcy attorneys are also more familiar with the law as it applies to debt settlement and negotiation. Most debt settlement companies are not extremely familiar with laws that govern debt, discharging debt, judgments, and collections. An attorney is usually more knowledgeable when it comes to legal guidelines and practical advice.

Another reason to hire an attorney is that they are usually better at negotiation compared to debt settlement companies. Most attorneys earn a living by persuading and negotiating. As a result, they have developed good communication, persuasion, and negotiation skills. These skills will be put to good use when settling your debt. Attorneys are also typically more respected (and feared) compared to debt settlement firms. Your creditors are more likely to comply with an attorney than with a generic debt settlement company.

Also, an attorney can usually negotiate a better deal with a creditor than you could get for yourself. Studies show that when a debtor calls a creditor to negotiate, the debtor ends up paying about 75 percent of the total balance owed. An attorney can usually get this number a lot lower, possibly in the 50 to 60 percent range of the total amount owed. Before using a debt settlement company, consider hiring an attorney instead. Talk to an experienced debt settlement attorney in your area to learn more.