Praxis Debt Solutions

We grow you out of Debt!

Easy Steps

Law Firm Model

Many consumers that are considering debt settlement look at law firms that offer debt negotiation services.

The idea of having a lawyer work on your behalf is no doubt enticing and comforting. While some consumers have had success with this model, there are others who have not fared so well. Reality is most of the time there isn’t even an attorney working on your behalf just an hourly employee. The attorney really just puts their name on the company, that’s it.


Here are some reasons debt settlement lawyers may not provide the results consumers are expecting:


Law firms do not have any methods to stop litigation from a creditor who is pursuing a past debt that you actually owe beyond that of any non-law firm debt settlement company. Law firm or not, the company you choose will need to either set up a payment or settle the debt before it gets into litigation.

The likelihood of legal action taken largely depends upon:

                (1) The creditor’s internal policy toward delinquent accounts

                (2) The debtors’ ability to pay

(3) Other factors that have to do with the client’s specific situation

(a) like account activity     

(b) prior to falling behind.


Debt negotiation attorneys oftentimes cannot actually provide any legal advice, if they aren’t licensed in your state they are the same as anyone else.  So, unless you like to pay extra fees for a law degree that can’t be put to use.

Because most debt settlement lawyers operate nationally they do not represent their clients if legal action is taken by the creditor. Just having a lawyer’s name on their company DOES NOT mean you have secured legal representation.

Debt settlement lawyers tend to be much more expensive than other alternatives because they may take a percentage of your savings in addition to other fees. For example, assuming you have $30,000 in credit card debt, you are entered into a 36 month program and the fees immediately start piling up. He or she charges 5% of the amount that is owed up front as a retainer fee and a monthly maintenance fee of $50 for the length of the program. This is fairly standard, but the lawyer may also be entitled to 30% of the savings. If your debt is settled for 40% of the outstanding balance, your total fees will be $8,700 of your debt. While you fare much better versus paying the minimums on high interest credit cards, there are more economical options available that will deliver equally satisfactory results.

The accounts probably will not be negotiated by an attorney. In most cases these are traditional debt settlement companies operating under the auspices of a law firm in order to lend themselves credibility. Virtually every debt settlement law firm will ultimately move the client’s account to a backend company for negotiations. If they do indeed retain the account, there may be just a few lawyers to hundreds or even thousands of clients. In light of the fact that they often charge higher fees, many consumers feel it doesn’t make sense to pay higher prices when they can receive the same level of expertise with a more cost-effective alternative.

By using a debt settlement law firm, clients often end up with fewer protections rather than more. Debt settlement companies are subject to a number of different regulations depending on where they are based or where they are doing business. By operating as a law firm in the “professional services” realm, many of these regulations do not apply and they are instead governed only by the professional and ethical standards of the legal field.

The debt settlement lawyer model only makes sense if the attorney only operates on a local level and will represent you in court in the event of a lawsuit and if they offer fees that are competitive with other companies in the industry. Even then, before you consider a debt settlement lawyer, see if they are in good standing with the Better Business Bureau (BBB) and with the local Bar Association. Ask for the Bar Association number to see if they are operating legally in your state. Just because they passed the Bar, it does not necessarily mean they have a good reputation for helping their clients.


We at Praxis Debt Solutions recommendation to avoid the Law Firm model at all costs.


Ask yourself this before using a law firm, how many law firms need sales people? Even with sales people, why would not you sign up with the attorney?


Recent Legislation Against the Legal Model

Legal Helpers Class Action Lawsuit

Debt Settlement Consumer Protection’s Advice on the Legal Model

Legal Helpers Avoiding the FTC

Attorney General goes to court to shut down Erie debt collector

Debt Settlement Loophole Guidance from Loeb & Loeb

Court Finds Four Problems With Attorney Model Debt Settlement Firm Allegro Law

The Critical Flaw in The Attorney Model for Debt Settlement

Johnson Law Group Suit Moves Slowly. Debt Settlement Attorney Sanctioned for False Statements.

Hess Kennedy Debt Settlement Scam

Jason Hass Law Group

BBB Warns Consumers About The Consumer Law Group Debt Settlement Services


Praxis Debt Solutions is the nation’s leading customer friendly debt settlement program available. If debt settlement is in your future, we know that you will discover that Praxis Debt Solutions is absolutely the best choice in the debt settlement industry.


Learn more by calling us today at  1-866-XXX-XXXX.