By Sam Dehbozorgi, Esq
Debt Relief Attorney and Partner, The Fullman Firm, PC
If you’ve fallen behind on your credit card payments, you’ve probably seen advertisements promising to “eliminate debt” or “settle your debts for pennies on the dollar.”
While debt settlement companies can serve a purpose in certain situations, many consumers don’t understand the important differences between a debt settlement company and an actual law firm.
At The Fullman Firm, we intentionally do things differently.
We Don’t Take Cases Until Legal Problems Begin
Unlike many debt settlement companies, we generally become involved when a legal issue exists.
That typically means you’ve received:
- A demand letter from an attorney
- A lawsuit
- A judgment
- A wage garnishment
- A bank levy
- A lien against your property
- Another form of post-judgment collection
Why?
Because that’s where experienced attorneys can often provide the greatest value.
Once litigation begins, legal rights, procedural rules, deadlines, defenses, exemptions, and settlement leverage all come into play. Those are legal issues requiring legal experience.
Many Debt Settlement Companies Focus on Pre-Litigation Accounts
Many debt settlement companies work with consumers before a lawsuit is ever filed.
Their programs often involve having consumers deposit money into a dedicated account while negotiations with creditors are attempted.
In many programs, consumers may stop making payments to creditors while funds accumulate for future settlements.
During that time, however, several things can occur:
- Interest may continue to accrue.
- Late fees may be added.
- Delinquent accounts may be charged off.
- Credit scores may decline.
- Creditors may choose to file lawsuits before settlements are reached.
Every situation is different, and consumers should fully understand both the potential benefits and risks before enrolling in any program.
What Happens If You’re Sued?
This is where one of the biggest differences often appears.
Debt settlement companies are not law firms.
They cannot appear in court on your behalf.
They cannot file legal motions.
They cannot provide legal advice in states where they are not licensed to practice law.
If litigation begins, consumers may need to hire an attorney separately. Some companies may coordinate representation through outside law firms, while the scope of that representation varies by provider and program.
At The Fullman Firm, litigation is what we do.
Our attorneys defend debt collection lawsuits every day.
Litigation Creates Negotiating Leverage
One of the biggest misconceptions is that settlement is only about negotiating numbers.
In reality, litigation often creates leverage that simply doesn’t exist before a lawsuit.
Our attorneys routinely evaluate issues such as:
- Whether the plaintiff has legal standing
- Chain of title problems
- Missing account records
- Statute of limitations defenses
- Service of process defects
- Evidentiary deficiencies
- Arbitration rights
- Procedural errors
- Exemptions protecting wages and bank accounts
- Improper judgment enforcement
These legal issues can dramatically change settlement negotiations.
When a creditor understands there are legitimate legal defenses or procedural obstacles, settlement discussions often become very different.
That’s leverage that generally comes from legal advocacy, not simply asking for a lower payment.
We Protect More Than Just Your Debt
Many of our clients don’t come to us because they have credit card debt.
They come because they’re facing serious collection actions, including:
- Frozen bank accounts
- Wage garnishments
- Sheriff’s levies
- Property liens
- Judgment enforcement
- Debtor examinations
These situations require legal knowledge, not simply financial negotiations.
Our attorneys work to protect our clients’ legal rights while pursuing the best possible resolution.
Experience Matters
The Fullman Firm is a California law firm.
Our attorneys are licensed by the State Bar of California and are ethically obligated to act in our clients’ best interests.
Our practice is devoted to consumer debt defense, judgment defense, and post-judgment collection matters.
We regularly represent clients in California courts and negotiate directly with opposing attorneys.
Which Option Is Right for You?
Every financial situation is different.
If you’re simply trying to get ahead of mounting credit card balances before litigation begins, a debt settlement program may be one option to explore after carefully reviewing its costs, risks, and services.
However, if you’ve already been sued, have a judgment entered against you, or are facing wage garnishment, bank levies, or other legal collection actions, it’s often time to speak with an experienced attorney.
Legal problems deserve legal representation.
The Fullman Firm Difference
We don’t just negotiate debt.
We defend people.
When your financial problem becomes a legal problem, we’re here to protect your rights, fight for the best outcome possible, and guide you through every step of the legal process. Contact us today.
