If your bills are piling up and you are barely able to make a dent in payments, it may be wise to start considering options for debt relief. The concept of debt relief covers many different strategies to pay down or eliminate debt, so there is a suitable solution for your circumstances. Chapter 7 or Chapter 13 bankruptcy are included under the umbrella of debt relief, but some may be able to take advantage of debt settlement without going to court.

Legal representation is crucial for debt relief, from determining what debt relief option is right for you to put a strategy into effect. However, when facing financial strife, you will no doubt have concerns about what it costs. An Athens, GA debt relief attorney does charge for legal services, and you want to know upfront how much you will have to pay. When making such an important investment in your financial future, it helps to know some background.

Cost to Retain Debt Relief Representation in Georgia

Because debt relief encompasses so many options and strategies, it can be difficult for a lawyer to estimate the exact investment of time and effort that will be necessary to resolve your matter. Therefore, your agreement for fees might be based upon an hourly rate instead of a flat fee. However, if it becomes obvious that the best solution is Chapter 7 or Chapter 13, a bankruptcy attorney may offer a flat fee. These cases are structured and subject to strict rules, so they are more predictable.

Your lawyer may incur expenses to represent you, so you can expect these to be part of your legal costs. As far as additional fees not paid to your attorney:

• There is a filing fee of $338 to file Chapter 7.
• You must pay $313 to file Chapter 13 bankruptcy.
• Both types of bankruptcy require credit counseling courses, which cost $50 or less.

What Georgia Debt Relief Lawyers Do

Statistics on debt in the US indicate that the average household debt is $102,000, and it is the goal of Georgia debt relief attorneys to reduce this for clients. There are multiple options to consider, but you must be aware of the pitfalls with some solutions. A lawyer will explain how certain debt relief options carry more cons than pros.

• With debt settlement, you work with a company that contacts your creditors and attempts to work out a lump sum payment to resolve the account. During this time, there is nothing stopping creditors from contacting you, foreclosing on your home, or taking other legal action.
• You may qualify for a debt consolidation loan, in which you borrow from a lender to pay all creditors. Then, you pay the lender, often at a lower interest rate. The problem is that many people do not qualify for the loan.
• With bankruptcy, your debts are eliminated or you pay creditors according to a monthly amount you can afford. Creditors must cease all collection efforts upon filing your Chapter 7 or Chapter 13 petition. Having an attorney to assist with this debt relief option is crucial because of the eligibility rules, paperwork, and steps in the process.

Benefits of Debt Relief

The advantages of debt settlement or a debt consolidation loan are limited as debt relief options, but some individuals could find success with the strategy. If you can afford to pay lump sums to creditors and can do it quickly, debt settlement might be wise. A debt consolidation loan means you will not be paying high-interest rates, but you still have a monthly payment.

For many people living with overwhelming debt, bankruptcy is the appropriate choice for debt relief. Some of the benefits include:

• With Chapter 7, you can eliminate all qualifying debts.
• When you file Chapter 13, you organize your debts into a payment plan that is based upon your income and what you can afford. After completing the debt repayment plan in three to five years, eligible debts are eliminated.
• In a bankruptcy case, an automatic stay on creditor collection activities is issued. Creditors cannot contact you, initiate a lawsuit, collect a judgment, garnish your wages, or foreclose on your home.

Types of Debt Suitable for Debt Relief

You can apply debt relief principles to almost any debt you owe, though some debts are more suitable for bankruptcy over debt settlement or consolidation loans. Remember that creditors are under no obligation to settle, so there is uncertainty until you reach a binding agreement. With either type of bankruptcy, you can address such debts as:

• Credit cards;
• Personal lines of credit;
• Auto loans;
• Medical bills;
• Title loans on a vehicle you own in full; and,
• Your home mortgage, which you cannot eliminate but will be in a better position to pay once you discharge other debt.

You cannot use any form of debt relief to avoid child support payments and other debts not eligible for bankruptcy.

Consult with an Athens, GA Debt Relief Lawyer to Learn More

It is encouraging to know that there are multiple ways to handle debt relief, especially for those who want to know what options are available outside of bankruptcy. To learn how debt relief could benefit your financial situation, please contact  Morgan & Morgan, Attorneys at Law, P.C. Our firm has helped many clients manage debt through carefully developed strategies, including settlement and Chapter 7 and Chapter 13. We can set up a free consultation with an Athens, GA debt relief attorney who will explain solutions and costs.

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Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.