Sunday, February 27, 2011

6 Tips to Negotiate With a Debt Collection Attorney

The delinquent accounts and collection of past dues are handed over to the collection attorneys. The debt collection attorneys are hired by the business houses, collection agencies, banks and credit card companies to settle with the consumers on their behalf.
You can negotiate with a collection attorney just the same way you might negotiate with a creditor. The negotiation process will be similar in both the cases. The attorney will require the creditor’s final approval before agreeing with the settlement agreement proposed by the debtor.
You can also take help of a debt management program in case you fail to pay off your debts and are not successful in the process of negotiation. So, take the help of the following useful tips to negotiate your debt like a professional negotiator.
1. You need to get an estimation of your debt-to-income ratio before negotiating with the attorney. You need to deduct your liabilities from your income. Consider this calculation while deciding your settlement amount so that it is affordable for your pocket. It is important to evaluate your financial situation before negotiating with a collection attorney.
2. You can contact the collection attorney either through phone or by email. You require collecting information about settling the default accounts. Your settlement will be determined by the age of your account. The attorney might force you to pay more than you have offered but you need to be firm on the settlement proposal.
3. Add the closing settlement amount so that you get a vivid picture of the amount you have to pay and amount you managed to save.
4. Ask the attorney to provide for a settlement agreement in written document. Discuss regarding the mode of payment you are going to make to him and also verify about the time limit of the payment. Request the attorney to give you detailed information regarding the delivery option of the payment as to whether it will be electronic transfer or phone payments.
5. If you are negotiating on concessions then try to incorporate this information in your settlement agreement. A regular concession is notified in your credit report as a settlement procedure. Request the creditor to notify the debt to the credit bureau as "paid in full" instead of "settled." Also, set a time limit by which the report must be completed and send it to the credit bureau otherwise it might tarnish your credit report.
6. Both the creditor and attorney’s signature and date are required on the settlement letter. An approval by the creditor is required on the settlement agreement to finalize the deal. So, ensure that the document bears the signature of the debt collector.

Author Bio :  
This article has been written by Amy Lewis. She is associated with Oak View Law Group, a bankruptcy law firm. She writes on a wide range of financial topics like debt management, credit card debt settlement, debt consolidation, bankruptcy etc.


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