Discover which debt relief companies will provide you with honest and professional debt solutions. Here you can research all your options, ask questions, and decide which type of debt solution is right for you!In the state of ohio are there changing laws that state that you must go through a law firm to do a debt settlement. I heard if this is not in place it will be soon.
The laws for the debt settlement industry vary from state to state and are in a state of constant change. In general, states enforce these laws to try and protect their residents from some of the unscrupulous practices of some past and present debt settlement companies that really did not do anything to help consumers. There really are no Federal laws regarding debt settlement so the states fend for themselves.
There are industry organizations that are trying to get all states to adopt a universal set of laws and regulations which will allow for more consistency. This will help everybody if it becomes reality.
In general, lawyers are exempt from specific state mandated debt settlement regulations because they can negotiate debt with creditors as part of their practice of law. Most law firms are not cost effective debt settlement solutions except for some who have dedicated the majority of thier practice to debt negotiations and bankruptcies. Those firms typically set up fee structures that are competitive with non-law firm companies.
In the case of your question about Ohio, if that regulation is passed then you need to be sure that the company you use is either a law firm or a debt settlement company who has the right to practice law in Ohio. Some debt settlement companies have in house attorneys while others contract with large national law firms who can faciliate cases in those states where only an attorney is allowed to do debt settlements.
Thanks for the question.
