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What To Do When You Work Full Time and Still Can’t Pay the Bills

Are you working all the hours under the sun but still can’t afford to pay the bills? This is, unfortunately, a very common scenario for many providers in American households. It is frustrating when you have gutted your budget as much as possible but it doesn’t have any real impact on debt. The temptation to just give up is understandable but there are options available to you. 

Speak to Creditors

Creditors do not want you to fail when it comes to repaying your debt. They are not in the business of losing money and that is what happens when debtors simply cannot meet repayments in a lot of cases. You may be able to renegotiate the terms of payment with many creditors, including mortgage lenders. This may take the shape of lower payments for a certain amount of time that are designed to better suit your financial situation and future earnings. Even if a few of your creditors agree to reduce the pressure on your finances through new terms, it can have a hugely positive impact on debt. 

Consolidate Your Debts

Debt consolidation can be achieved through credit counseling or taking out a loan through your own enquiries with creditors. When you take out this type of loan, it results in making one monthly payment, usually at a lower amount, but over a longer period of time. It is important to understand the terms of each loan, as there are often hidden fees and interest rate considerations with consolidation loans, or you may be required to use your assets as collateral. However, there are options out there that can help debtors who can’t pay the bills to regain financial footing. 

Chapter 7 Bankruptcy

If you are earning less than the median income for a family of your size in the state, you may qualify for Chapter 7 bankruptcy, although other factors must be considered as well. If you do qualify, however, you can have most unsecured debts discharged, which may provide you with the financial freedom you need to get back on your feet. If you believe Chapter 7 will help you when you can’t pay the bills, H. Lehman Franklin P.C. is a reputable law firm in Georgia where you will receive invaluable advice and guidance. 

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is designed for debtors who are earning an income and need to reorganize their finances when they can’t pay the bills. You will submit a repayment plan proposal which, upon acceptance by the bankruptcy court, is managed by a trustee. Lasting between 3-5 years, Chapter 13 bankruptcies allow debtors to repay all or part of their debt through installments agreed in the repayment plan. You may be able to save your home from foreclosure and stop repossession of vehicles by filing for Chapter 13, so speak to the experts at H. Lehman Franklin P.C. to learn more. 

If you would like to discuss effective solutions for when you can’t pay the bills, reach out to the offices of H. Lehman Franklin P.C. in Georgia today at 912-764-9616, or by email at info@hlfranklin.com. We are committed to providing excellence in guidance to help you better manage your financial circumstances.