Get out of Debt, Georgia

How to Get Out of Debt Forever in Georgia

What does it take to get out of debt forever in Georgia? Anyone who has been in serious debt knows one thing: it doesn’t just go away. You need to take steps towards pulling yourself out of debt and it’s not always easy. If you choose the wrong option for your situation, it could result in your debts continuing or getting worse.

Getting out of debt forever takes commitment, no matter which way you look at it. If you take out a loan to cover debts, you need to commit to paying that loan. If you file for bankruptcy, you may need to sacrifice assets or commit to a repayment plan. The end goal of getting rid of debt is achievable, you just need to think carefully about which commitment is most beneficial for you and your family.

Speaking to Creditors

The thing about creditors is they want the money you owe them – but that doesn’t always mean at the same monthly amount or even the same total payment. Creditors look at risks versus recovery of debt. Depending on your financial situation and whether you have already missed payments, creditors may agree to lower payments, or a reduction in the total amount owed, if you can make an upfront payment. You will only get answers to these questions by speaking to your creditors when you know your debt is becoming too much to handle. However, if a creditor agrees to reduce debt, you may be issued a 1099 for cancellation of debt, which could cause you to owe taxes. You should consult with an accountant to determine any tax consequences.

Consolidating Debt

Have you considered consolidating your debt? This is one method that debtors often overlook or discount because of the perception it means replacing debt with more debt. You may be able to find a consolidation loan that gives you breathing space and helps you to better manage your debt. It is one single payment each month, replacing multiple payments that all come with their individual penalties and fees.

If you do opt for consolidating your debts, just ensure you carefully read the small print for fees and penalties that would land you in further debt if you can’t make payments. Additionally, check the rate of the loan after any promotional period to make sure you aren’t committing to more debt than you were in before.

Speak to a Bankruptcy Lawyer

Bankruptcy is not an option to be taken lightly. If you would like to have debts permanently discharged, bankruptcy may provide a viable solution. Your finances, income, and assets will determine which chapter of bankruptcy is most suitable but you will also need to meet qualifying criteria. For Chapter 7 bankruptcy, you must not be in a position to pay your debts, which involves passing a means test, which looks at your gross household income for the last 6 calendar months prior to filing the bankruptcy.

A Chapter 13 bankruptcy is for individuals who have the disposable income to pay some or all of their debts as part of a payment plan. Your debts cannot exceed certain capped dollar amounts that are set forth in the bankruptcy code in order to qualify for a Chapter 13. However, these amounts are usually much higher than the debts of the average person, and they do not pose a problem in most cases. Payment plans are between 3-5 years and debtors must commit to regular repayments among other conditions.

Call H. Lehman Franklin P.C. if you have any questions at 912-764-9616 or email at