Top Five Misconceptions of Debt Settlement Lawyers | GEM Debt Law
When faced with overwhelming debt, it’s important to explore all available options for debt resolution. One such option is working with Debt Settlement Lawyers, who are often misunderstood due to misconceptions and lack of information. In this blog post, we aim to shed light on the misconceptions of Debt Settlement Lawyers and provide you with an informative guide to making a better-informed decision about your financial future and perhaps choosing Debt Settlement.
Misconception 1: Filing a Consumer Proposal or Bankruptcy is Similar to Working with Debt Settlement Lawyers
Many individuals are bombarded with advertisements promoting a Consumer Proposal or Bankruptcy as the ultimate solution to their debt problems. However, it’s crucial to consider the consequences and long-term effects of filing for either of these options. Before considering a Consumer Proposal or Bankruptcy, consider this, both Consumer Proposal and Bankruptcy can have a negative long-term impact on your credit score, hinder your chances of qualifying for a mortgage, and potentially require high payments; as well, require you to surrender all of your credit cards – no exceptions!
Misconception 2: A Consumer Proposal or Bankruptcy is Cheaper and Safer than a Debt Settlement Lawyer
While a Consumer Proposal or Bankruptcy may seem like an inexpensive way to eliminate debt, it’s important to understand the costs and risks involved. The cost of filing for a Consumer Proposal or Bankruptcy includes government filing fees and administrative court fees, as well as potential surplus income payments which can make payment very high. Additionally, Bankruptcy may require surrendering non-exempt assets, such as a home or second vehicle, further increasing the financial toll.
Moreover, Bankruptcy can result in the loss of tax refunds, HST credits, and windfalls. Comparatively, Debt Settlement offers a more affordable and flexible solution.
Misconception 3: Settling Debts on Your Own is Feasible
Some individuals may consider settling their debts without professional assistance to save money. However, managing payments and negotiations with multiple creditors can be laborious and challenging to track independently. Debt Settlement Lawyers and their legal-accounting teams specialize in settling multiple accounts on your behalf, simplifying the process, and ensuring timely payments to creditors. Their expertise and experience can save you time and stress. Especially since creditors will utilize any number of collection tactics, intended to stress you out, to the point of paying the creditor more than you can afford.
Misconception 4: Legal Representation at a Creditor Meeting or Court Hearing is Unnecessary
Participating in a creditor meeting or court hearing without legal representation can be risky and can jeopardize your case, potentially leading to unnecessarily higher payments and/or aggressive actions by creditors. Debt Settlement Lawyers provide valuable guidance, can negotiate on your behalf, and strive for a favourable settlement deal that is both affordable and may involve creditors waiving and forgiving certain entitlements. Debt Settlement Lawyers will also offer ongoing coaching and support throughout the process, to protect your best interests.
Misconception 5: Debt Settlement Lawyers are Mere Middlemen
Some may question the necessity of Debt Settlement Lawyers, assuming they merely act as intermediaries in negotiations. However, the reality is that creditors can be challenging to communicate with and settle debts with, effectively. Debt Settlement Lawyers have the necessary expertise to navigate these complexities. While the creditors may initially push for full repayment, Debt Settlement Lawyers can negotiate an affordable payment plan or ensure a fair settlement.
The Bottom Line
When faced with significant debt, it’s crucial to consider all available options and make an informed decision. Debt Settlement offers unique benefits, such as reducing the amount owed and often providing a more affordable solution compared to a Consumer Proposal or Bankruptcy. By working with Debt Settlement Lawyers, you gain access to professional expertise, simplify the payment process, and increase your chances of achieving a favourable settlement.
Remember, it’s essential to consult with our Debt Settlement Lawyers and explore all available options before making a decision that will impact your financial future. Contact GEM Debt Law today to speak with a representative who can provide the guidance you need to make the best decision for your situation.
If you’re struggling with debt, don’t risk your future. Contact GEM Debt Law today to speak with a representative and get the help you need to make the best decision for your situation.