Many ways to get out of debt

For Georgia residents who are struggling to make payments on their various financial obligations, the path out of debt can seem insurmountably difficult. However, as we have emphasized many times in the past on this blog, borrowers have various options when debt becomes overwhelming and it is not possible to continue to make payments on all of one’s obligations.

While it can be difficult to take the first steps towards a solution, it is important to realize when help is needed and to seek out the appropriate resources to get the ball rolling towards relief.

For people who are struggling mainly with consumer debt, there are nonprofit organizations in Georgia that can help counsel borrowers on debt repayment strategies and can assist in working with creditors to establish a new payment plan. This option does not allow for a reduction in the balance that is due and the repayment time can be lengthy. There are also many organizations out there trying to mislead distressed borrowers into believing that they are not-for-profit when in fact the opposite is true. Before working with one of these organizations, check their credentials and make sure their nonprofit status with the IRS has not been revoked.

Another option, which our firm assists clients with, is bankruptcy. Both Chapter 7 and Chapter 13 bankruptcy filings offer a reduction in the total amount owed through various means including liquidations of assets and refinancing of loans. Bankruptcy filing can offer a finality and a court approved debt management solution, although it often comes at the price of disposal of some assets and harm to one’s credit rating.

Source: Fox Business, “Choices for Debt Relief” Fred O. Williams, Feb. 8, 2013