Lawyers and Debt Negotiation

Before reaching a final decision about any means of reducing debts, you would be well advised to take heed of a few debt negotiation facts. For instance, the single most destructive mistake made by consumer debtors is their assumption that large commercial lenders deal in good faith. Misplaced trust and reliance upon statements of law made by lenders often results in regrettable and avoidable mistakes. With the assistance of a talented lawyer, these mistakes are virtually eliminated. Secured debt elimination is particularly susceptible to these kinds of mistakes. For example, almost all security agreements contain a bankruptcy acceleration clause (providing filing is an event of default justifying repossession). But clearly, these clause are unenforceable as a matter of law according to the U.S. Supreme Court. Few creditors advise the debtors of this well settled law, and instead, frequently threaten illegal repossession.

Law Firm Debt Negotiation Services

Selecting the best avenue for legal debt negotiation requires careful attention to cost, complexity of laws involved, and potential for litigation. For instance, for debt elimination, secured debts often pose a much greater obstacle because of the potential for foreclosure (sometimes referred to as an in rem cause of action) regardless of, or in the absence of personal liability. As a natural result of retaining a highly skilled lawyer, attorney fees and costs escalate rapidly as compared to more traditional private negotiation companies that deal primarily with consumer debts and credit cards. Care should be taken comparing total costs vs. potential benefits.

Nevertheless, even consumer debts can be eliminated completely by a talented lawyer offering debt negotiation services. Frequently a lawyer can identify fatal defects in a lender's claim for liability. Thereafter, a lawyer initiating litigation may obtain default order of "no liability", a summary judgment based on law, or court judgment. Creative lawyers may also file suits on behalf of debtors seeking declaratory judgments which, according to the Uniform Declaratory Judgment Act, requires the losing party to pay for attorney fees incurred by the winning party.