Companies that specialize in debt consolidation and ask about credit card debts of “$10,000 or more” are not legal professionals. They claim to settle your accounts for 40% or less but typically charge a percentage based on your total owed amount. This could amount to thousands of dollars, and they won’t take any action until you’ve paid them in full. Ironically, while you’re making payments to them, your creditors remain unpaid, which can lead to two possible outcomes: 1) you might face legal action; or 2) the expiration of the statute of limitations. If you get sued, a debt consolidation company won’t be able to assist you, providing only generic documents and well-wishes.
An attorney, on the other hand, can offer legal defense and potentially make the debt disappear. If the statute of limitations has expired, it is crucial not to make any payments towards the debt. Legally, you are not obligated to do so, and paying could restart or toll the statute of limitations, making you legally obligated to pay. Debt consolidators lack the ability to distinguish between debts that should be paid and those that can be ignored. Furthermore, lawyers have the power to halt harassing phone calls and abusive debt collectors by suing them for violating the law, even for minor infractions. Many individuals find themselves wasting thousands of dollars on debt consolidators before realizing their money has been squandered.
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