Many people struggling with debt believe bankruptcy is the only solution to their debt issues. However, sometimes bankruptcy is not the best solution for the situation. There are other solutions; the trick is to find the right one.

You shouldn’t try to handle it alone when you are so deep in debt that you can’t see the way out. Instead, you should engage an experienced, qualified debt relief attorney. The attorney can help you find the best solution for you and your situation.

Why Should You Choose a Debt Relief Attorney to Help You with Your Debt? 

An attorney has experience dealing with legal matters. They can explain your rights to you. Once you understand your rights, they can prepare the necessary legal documents to proceed with your case. A debt relief lawyer can file a lawsuit, prepare your case for an upcoming trial, and represent you in court if necessary.

Negotiating with creditors is their specialty. Debt relief attorneys work with creditors to negotiate lower settlements than they usually accept. The best debt relief lawyer can negotiate a more favorable debt profile to help you regain financial stability.

Lower settlements mean you agree to pay less to settle your debts than you owe. In return, your creditors will drop any charges against you and forgive your outstanding balance. Once your debts are resolved, it should be easier for you to make payments each month without getting fees or penalties for late payments or overdrafts.

How to Choose the Best Debt Relief Lawyer for You

Choosing the best debt relief lawyer for you isn’t as simple as reading the listings in the phone book. First, you will want to ensure that the lawyer you choose is experienced in the specific area of law relevant to your situation. You will want to clarify some other things before hiring someone to work on your case.

Learn if there will be a charge for the initial meeting with the attorney. Other expenses you should ask about include the lawyer’s charges for their services. You should also ask if you will be responsible for other fees or costs. For example, courier services, court filing fees, research services, or copying documents can incur additional fees.

When talking to an attorney to determine whether or not to work with them, you must be prepared to discuss your issues. If you don’t feel comfortable talking to them about your debt, they aren’t the best debt relief lawyer for you. You’ll need to provide a concise overview of your issues for the initial visit. For future visits, you’ll need to be willing to give more detail regarding your finances.

An interview isn’t complete without discussing the lawyer’s experience. Ask the lawyer what they see as your options as well as what they predict is your potential for a successful debt solution. You’ll also want to discuss their approach to finding a solution to your problem. Another critical question to get the answer to is how long it might take to resolve the debt issues.

Who Qualifies for Debt Relief in Athens? 

Each debt relief method has its criteria for qualifying to use it. Some things are common for every form of debt relief, though. The number one qualification for debt relief programs is that credit accounts are so overwhelming that you can’t maintain an on-time payment schedule. Ideal candidates for debt relief programs won’t have enough savings to pay their debts without the assistance of a debt relief negotiation.

Someone who wants to participate in a debt relief program must show they can’t pay their debts in full and understand how participation in a debt relief program will affect their credit. Several debt relief programs require monthly payments for the satisfaction of obligations. Most times, you will need to be at least 90 days behind on payments before a debt relief program will consider allowing you to participate.

You will be required to provide information about your income and debt liability when looking for debt relief solutions. To begin, you must gather paystubs that show a usual work week; you should provide two or three of those. You’ll also need information on your spouse’s income.

You’ll need to provide information about your debts as well. After all, the point is to work toward a debt relief solution. You’ll need to know what debts you owe, your typical payment, the total balance, who you owe, and when you made your last payment. In addition to the obligations you want to be included in the debt relief program, you will need to provide information regarding your fixed and variable monthly expenses.

Once you’ve gathered all the information you think you could need for your debt relief program, it’s time to do some math. You must determine what you earn above what your typical bills are. If you don’t have anything coming in above those bills, you may need to discuss other options with your debt relief attorney.

Benefits of Hiring a Debt Relief Lawyer in Athens

You are well within your legal rights to negotiate your debt settlement terms. However, you will likely find it beneficial to hire an experienced lawyer to help you navigate the debt solution process. The best debt relief lawyer for you will advise you on negotiating your debt settlements.

Working with an attorney specializing in debt relief gives you someone who understands your position without becoming emotional. Someone who is removed from the situation can help assist you with creditor negotiations because they can remain rational since they have no personal attachment to your case. They are more experienced with debt negotiations.

The debt relief process can be overwhelming and time-consuming, especially if you try to negotiate your debt solutions on your own. The best debt relief lawyer will do the background work for your debt relief case while you handle other things.

Available Kinds of Debt Relief Programs

In Georgia, you have access to five approaches to debt relief. These five approaches to debt relief include the following:

Debt Management

Debt management plans work to lower interest rates associated with credit cards. Generally, you can expect a credit card interest rate to start at about 16.7%. Missing one payment can raise your interest rate to around 25%, and missing additional payments can cause your rates to continue to increase.

Debt management plans help to reduce credit card interest rates to 8%. Your credit score isn’t considered when enrolling in a debt management program. Making on-time payments each month can give you a chance to be debt-free within five years. You can quit the program if you want, but that allows the credit card company to raise interest rates to between 25 and 30%.

Debt Consolidation

You’ve likely heard of debt consolidation. That’s when you get one loan to combine multiple debts into one payment. When you take advantage of debt consolidation, you will have one payment to your bank or credit union instead of three or four separate credit card or personal loan payments. Your credit score and whether or not you want to use any property as collateral help determine the interest rates for these loans.

With consolidation loans, you still have the same debt because you took one big loan to pay off several small loans. You will still have access to your credit cards, so you could find yourself in more trouble if you don’t stop using your credit cards. You must also have a good enough credit score to qualify for these loans.

Debt Settlement

Debt settlement is used to pay off debts for less than they originally owed. Typically, the payment for these plans is a lump sum, and you must save money in an escrow for two or three years while you negotiate an agreeable plan with your creditors. These debt settlement plans can take some time to set up, affecting your credit report for seven years.

If you use a debt settlement plan to get more than $600 of debt forgiven, it’s considered income by the IRS and must be filed on your taxes. The programs are relatively straightforward in the way they work. A negotiated amount of money is paid into an escrow account instead of minimum payments to your credit card companies. Once the escrow account is large enough, the money is used to pay the creditors who negotiated with you.

Nonprofit Debt Settlement

The premise of nonprofit debt settlement is the same as other debt settlement companies with different implementations. Your lenders agree to settlement terms on the front end of the arrangement. You must follow specific rules to remain eligible for the debt relief program.

You must be 180 days from paying your last credit card payment. You agree to a fixed payment amount for 36 months. You must make every payment on time because no extensions are available, but you can repay early.

Interest doesn’t accrue on these accounts during the 36-month repayment period. However, if you miss one payment, your program will end, and the credit agreement’s original terms will be reinstated.

Bankruptcy

Bankruptcy can sometimes be the best choice for debt relief. It provides a kind of restart to your financial life. Chapter 7 and chapter 13 bankruptcy are the two kinds of personal bankruptcy that people file. With chapter 7, assets must be liquidated, and with chapter 13, a repayment plan is created to satisfy debts. Bankruptcy will remain on a credit report for 7-10 years, making it more difficult to obtain credit later.

Closing Thoughts

If you need debt relief in Georgia, you have several options. Choose the best debt relief lawyer for your situation by interviewing lawyers and asking them questions regarding their procedures for handling cases like yours. For questions regarding debt relief solutions in Georgia, contact Morgan & Morgan at (706) 843—2905.

Related Post: Who Qualifies for Debt Relief in Georgia?