How Does a Debt Settlement Law Firm Work?

I have been working in the debt settlement industry for almost ten years now and have very extensive knowledge as to how it works. Before we begin I want to say this will be a rather long article and if you are not serious about finding a solution to your debt problem then stop reading now. The purpose of this article is to explain to you first how debt settlement works and what the process entails; both the good and the bad. Next I will explain the differences between how a debt settlement law firm works and how it compares to a standard debt settlement company. There are many differences between how this process is handled by the two. Because of this debtors should learn these differences before enrolling into any program. Many people may already know how a debt settlement company works but have no clue as to how a law firm works and this article will explain just that.

First of all, I would like to state that debt settlement as a means of credit card debt relief is not for everyone; some people simply do not have the right state of mind, while others may benefit more from bankruptcy.

To begin with I would like to go over the purpose of credit card debt settlement and how the process works. The purpose of debt settlement is for the debtor to get out of debt quickly without having to file bankruptcy and save a lot of money in the process. The goal of the debt negotiator is to negotiate a one time lump sum payment on the debtors’ behalf at a far reduced amount than what the debtor currently owes.

These benefits are tremendous. The debtor could save themselves close to half of what they currently owe and be out of debt in a few years. However as with most things in life there are drawbacks to this process and there is no way to avoid them.

In order for any creditor to be willing to negotiate a debt settlement on a debt the account must fall into default first. There are no creditors in the world willing to negotiate when you are current and up to date on your monthly minimum payments. If they feel you can maintain your monthly minimums than this is precisely where the creditors want to keep you. This is where their profit is made, by just paying the minimum each month you will be in debt for over thirty years, even if the interest rate is not all that high. If your rate is above 20%, you will be stuck in debt for well beyond thirty years and payback the creditors well over ten times the original balance alone in interest. That is exactly where they want you!

So understandably they will not negotiate with you when you are current and they feel they can still bank on your minimum payments for years to come. So the only way to ever negotiate is to fall behind on the monthly payments. Naturally once you do this you will be negatively affecting your credit score and will also be receiving calls from collectors; this is what may put some people off from doing debt settlement, thus why I stated above this process may not be for everyone.

For those people already behind this will not make a difference and their credit will not be damaged any more than it already is, however for those who are current this will adversely affect their credit. It is quite a shame that this point alone may stop some people from using debt settlement; thus dooming them to being financial servants to the creditors for decades to come.

You must also be made aware that this process in the end will begin to help rebuild your credit. Thirty percent of your MyFICO credit score is made up of your debt to credit ratio, which will look a lot better after you get out of debt. Additionally the negative remarks from falling behind will not hold much bearing on your credit score after two years. Your credit score is only a snapshot in time and only uses the last two years of payment history to determine the score.

Now during the process of falling behind your goal is to save up as much money as possible in the quickest possible time. This money is then used later on to pay off the settlement that is negotiated by the debt negotiator. The faster someone looks to save money and complete this process the better for many reasons. For one the faster you are out of debt the more money you stand to save and the less risk you take from the negative aspects of settlement such as lawsuit and further damage to the credit report.

This brings us to the title of the article “How Does a Debt Settlement Law Firm Work?” As I explained above there are great benefits to debt settlement such as saving lots of money and time; and there are also some downsides such as collection calls and the possibility of a lawsuit.

The main differences between how debt settlement is handled by a debt settlement law firm and standard debt settlement company is how they deal with the negative drawbacks. A law firm has much more legal power and is set up correctly to comply with their states’ laws.

Collection Calls

One of the first major differences in how debt settlement is handled has to deal with collections calls. When you first fall behind and your debt is still in the hands of the original creditor there is nothing legally that can be done to stop them from calling. However once the creditor passes the account off to a third party collection agency which will happen anywhere between 3-6 months after falling behind things change. Legally once in the hands of the collectors a law firm will have the power to have all calls to their client stopped, and if the collector continues to call and harass the client legal action can be taken against that creditor seeing as they will be in violation of the FDCPA (Fair Debt Collections Practices Act).

So the client’s first advantage by using a law firm will be a much decreased activity in collection calls, and this is very important for some people. Any regular debt settlement companies that claim they can stop the calls are simply not telling you the truth and you should be very weary of them because of this.

Lawsuits

The next major advantage a law firm has concerning debt settlement is how a lawsuit can be handled. In case you are not aware once you fall behind on your credit card debts the creditors/collectors do hold the legal right to pursue you through the courts to collect the debt. However I will mention, that suing is not the mainstay of the collectors and is not exercised very often; reason being it simply costs too much money and time on the creditor’s behalf with no guarantee of getting any money even if they were able to obtain a judgment anyway.

The advantage the law firm has is they can still legally contact and negotiate a settlement with your collector after they have issued a summons to court. A debt settlement company does not have this legal power. The collectors are very willing to negotiate a settlement even after the summons has been issued; they realize they may get very little if anything regardless, so being contacted by a reputable law firm who is willing to offer them money and settle the debt without wasting any time or money with going to court is very beneficial to the collector.

If you get sued and you only have a standard company representing you, you can expect to go to court and try to figure it out yourself. This often results in a judgment for the debtor!

Correct Legal Set Up

Perhaps the biggest advantage the law firm has over a company is how they are set up. The vast majority of debt settlement companies are not legally allowed to work in all the states; many are not even set up correctly to operate in their own state.

The states’ attorneys and the FTC (Federal Trade Commission) are cracking down severely on these companies and shutting them down as fast as possible. When this happens often times the company does not have the money to payback its clients for the fees they paid to a company that will no longer be in business and can no longer help to settle their debts. Now the debtor will be left holding the bag having paid thousands in fees but still be stuck in debt, and this nightmare scenario happens more than you may think. Thus making law firms a much, much safer option!

Another issue that many people have with debt settlement companies is they will not disclose how this process works and will simply sugar coats things and preach about the great benefits but never mention one downside. A law firm legally must disclose everything about how this works before being able to enroll anyone into any structured payment plan. A lot of companies do not have your interest at heart and will say whatever it takes to get you signed up even if they are fully aware that they are setting you up to fail.

Which brings me to my last point; a lot of unscrupulous companies will allow their clients to sign into a program and pay whatever they want and put them into programs that are set up for much longer than they should be. By stretching a debt settlement program out the savings will decrease and the potential for a lawsuit will increase. These companies cannot legally give the client advice or assistance if they get sued; it is considered unlicensed practice of law and this is what I mean by them knowing they will be setting you up to fail. If you can’t get this process done within three years, four max in special situations, then you should seriously consider bankruptcy. A law firm will be strait up and tell this to you, where many shady companies will keep trying to sign you up.

I really hope after reading this article you feel enlightened and now have a much better understanding of how debt settlement works and how a law firm can advantage you the most. I know for the most part I have been focusing on the negative aspects of debt settlement, but I feel it is important for people to understand both the good and the bad, allowing them to make an educated wise financial decision on how to get out of debt. But you must realize just how powerful the benefits of this process are! Saving close to half of what is currently owed and becoming debt free in a few years will be so beneficial to your current and future financial well being. Credit card debt has a way of destroying people’s finances and their lives and debt settlement is the perfect alternative for those who want to escape debt quickly and avoid the embarrassment of filing for bankruptcy.

If you are curious as to whether using a debt settlement law firm can benefit your financial situation then I invite you to follow the link below in the signature box and fill out an application. I welcome the opportunity to review your personal and unique situation to see if debt settlement will be the right fit for you.

Law Practice Optimization and Its Place in Today’s Law Firm

Law practice optimization (LPO) is the process of improving the services provided by the Legal Industry to their clients. In today’s modern world, always being connected to your office and your clients is no longer just a luxury it is an absolute requirement. As we all know, the internet has opened the doors for the Legal Industry and allowed Law Firms to market and advertise themselves to the World Wide Web, through business advertising campaigns, which reach tens of thousands and perhaps millions of prospective clients, by just the click of the mouse. It is the servicing of the clients and the ability of the Law Firm to conduct their business in the most efficient manner is where the LPO surfaces its necessity.

As clients awareness of LPO increases, they will in turn drive the Legal Industry to adopt LPO methodology. The Legal Industry can no longer hide behind antiquated methods that are still is use today when dealing with the voluminous amount of paperwork, telephone calls, research, as well as, all communication and document production that is involved when dealing with the resolution of a legal matter. Before LPO, the Law Firm has been able to past the cost of inefficiency directly to the client by way of standard hourly billing. Since LPO, the Law Firms are being held to a higher standard of expectations and efficiency, and with the use LPO, these efficiency savings are being passed down to the client with better service for less money.

The use of today’s modern technology is now being demanded by the client. Having the ability to receive mail electronically, receive SMS messages for reminders or court notifications, is now the standard that is expected in the industry. Older, much antiquated methods like regular mailings, are no longer being accepted by the client who expects more from their Law Firm.

The initialism “LPO” can refer to “legal practice optimization” synonymous with “law practice optimization,” which is a term adopted by an industry of consultants who carry out optimization projects on behalf of individual Law Firms. These consultants or Legal Practice Optimizers or Law Practice Optimizers, perform an in depth evaluation of the current practices of the Law Firm and then provide recommendations as to the lack of efficiency being used within the managerial sector of the Firm. Many times, the LPO consultant finds deficiencies pertaining to the lack of adaptation by the Firm to utilize current technology and software that is available in the current market place. In many instances, the LPO consultant will find the Law Firm has become complacent with respect to the managing of the Law Firm due to their ability to offset any extra costs of being inefficient, directly in their client billing.

Law Practice Optimization does not stop with streamlining the internal practices of the modern law firm. It also covers managing the online exposure and marketing of the firm when appropriate, through the creation of a custom web site for the firm, and in addition the application of the now well established practice of SEO or Search Engine Optimization. This is now a common area of focus for the practicing LPO consultant since legal firms are now relying on new client intake via the internet, a well functioning and effective presence online is now essential.

5 Tips for the Best Law Firm Logo

What does your law firm logo suggest to your potential clients?

You only have one chance to make a first impression. Upon meeting a new or prospective client and exchanging business cards, the client will get an impression of your firm based on the law firm logo alone.

So, what does your logo say about your firm?

Your law firm logo represents your law firm to the outside world. Every seemingly insignificant aspect of it makes an impression on the client. Font. Color scheme. Name arrangement. Text size. Spacing. Inclusion of a scale or gavel image.

Looking at your business card and firm logo, your client gets an impression. Your client forms an idea in his or her head of what your firm stands for. Is your logo modern or traditional? Does it make you look frugal and indifferent, like you made the logo yourself in Microsoft Word or does it look like you value your reputation and appearance, and had a professional designer create the logo?

Before approaching a logo designer or creating the logo yourself, there are some very important steps you can take to get a clear picture of what the logo should entail and how it should represent your law firm.

Tip 1: Look at your competitors

You don’t want your law firm to look like the other law firms in your practice area and location, lest your firm be unmemorable to the client. The last thing you want to do is confuse the client with what sets your firm apart from everyone else. See what you like about their logos. Make notes. Try and gauge how their logos make you perceive their law firms. Do their logos make the firms appear professional or do they seem like the firms are unremarkable? Think about what you like and don’t like about these firm logos when deciding on how your own logo is going to look.

Tip 2: Modern or traditional? Decide on a theme

Do you want your logo to be modern or traditional?

These are the two main theme options for law firm logos. This usually means the difference between serif and sans-serif font. What does that mean? Open Microsoft Word or Google Docs. Type your law firm name in Times New Roman, Georgia, or Garamond font. Then, type your firm name again in either Arial or Helvetica. The first three fonts are considered serif fonts because you can see they have little lines on the bottom and sides of letters like A, B, and C. The sans-serif fonts do not have these lines. Serif fonts are associated with newspapers, considered more traditional fonts. Sans-serif fonts are associated with Internet content and are considered modern. Do you want your law firm to have the appearance of a traditional, storied practice or do you want it to appear sleek, adaptive, and modern? The choice is yours.

Tip 3: Choose a Font

Now that we’ve decided whether to go serif or sans-serif, we need to choose which font is going to represent the firm. First thing’s first, it should be noted that you should NOT use a commonly used font. Arial, Helvetica, Times New Roman. People see these fonts every day. Whether they recognize them immediately as Arial, Helvetica, or Times New Roman, people know these fonts. They see Times New Roman while reading the newspaper. They see Helvetica when getting on the subway. They see Arial while reading websites. These fonts do not make an impression anymore.

There are many sites where you can download fonts for free. Google has a directory of free fonts, most of which you’re guaranteed to not have come across. Take a look around. Use the Google Font tool to test out your law firm name in different fonts and compare them side by side.

One last tip on choosing a font: Don’t be indecisive. While two or three fonts may look similar to you, your clients will never know the difference when you choose a font for your law firm logo. They will never know that it was down to three similar fonts. The client will likely not be influenced any differently by similar looking fonts. You may want to ask someone else for their opinion on two or three fonts, but make a choice and stick with it.

Tip 4: Choose your colors

Online you can find many color wheel tools useful to help web designers choose color schemes. Click on a primary color and they will suggest complementary colors. Just make sure that you use a color selection helping tool. Otherwise, you may end up picking two colors that just don’t work together.

When picking colors try avoiding those of a law firm in your practice area and region. You want to make sure you stand apart in the mind of the client. If you think every color combination has been taken by the firms in your region, just ensure that your logo look different to distinguish you from your competitors.

Tip 5: Images or No Images?

Often a law firm logo entails an arrangement of the names of the partners. Sometimes it’s an abbreviation of those names. Other times, the logo includes a tried and true symbol of the legal profession – the scales of justice – or a gavel – alongside the partner names.

Generally, I hate the scales of justice and gavel. They’ve been played out. They’re overdone. They’re sickening. They’re unimaginative.

If you are going to include an image alongside your partner names, why not include a memorable image that represents your law firm, conveys professionalism, and also originality? You can do this by including an image, if you so choose, of the initials of the firm partners’ names. If the firm is Crane, Poole, and Schmidt, you could have a small CPS initialed logo. This is a more modern element to law firm logos, differentiates the firm, and also looks professional. So, if you are going to include an image, consider shelving the gavel and scales for something a bit more contemporary and unique.

Conclusion

With all of these tips in mind, you’re ahead of the game. Whether you decide to make a logo yourself or approach logo designers, you know what you want your logo to convey. You know the message you want your clients to receive. You know how your competitors look and how you’re going to look different. Now, you can clearly envision what your logo is going to look like without having to get wildly different designs from a designer that won’t be useful for your firm.

If you are proficient at Photoshop, I would suggest taking a shot at creating a logo yourself. If not, maybe you should consider hiring a logo designer. In this crowdsourcing era of Internet technology, logo designs can be incredibly inexpensive. There are many sites now like 99designs.com where you can crowdsource your logo design, having up to several hundred design mock-ups sent to you by freelance designers, with you choosing and paying for your favorite.

Good luck.