There are a number of options for Georgians struggling with debt and other liabilities. Although many people eventually decide to file bankruptcy, it’s not an option for others. Federal bankruptcy laws require means testing of all those who file. A means test weighs the income of the petitioner against the average income of the state where they are filing, and it also considers other factors. If your income is higher than the level set by the means test, you cannot file for bankruptcy. Debt settlement may be an alternative. Our staff and attorneys with Gastin & Hill, Attorneys at Law have decades of experience working closely with clients in Chatham, Bryan and Effingham counties to improve their lives and help them manage their debt.
In debt settlement, a lender owed money agrees to reduce the amount owed or restructure the time period for repayment. This is different from debt consolidation, in which one entity assumes responsibility for all of your loans. Debt settlement usually involves some negotiation. Lenders may agree to:
Lenders often agree to do this when debtors filing for bankruptcy potentially extinguish the possibility of repayment. Debt settlement also reduces the risk of lenders resorting to wage garnishments, liens or harassing phone calls or legal threats. Debt settlement also benefits an individual’s credit score, because paying off existing loans tend to raise a credit rating that has been downgraded.
Consumer debt is very common, especially with so many people losing jobs and not being able to find new ones. So you are not the only person who owes a lot to creditors. Sources of debt that often drive people to seek settlement include:
Outstanding home mortgage loans that are not resolved through settlement can result in foreclosure. A knowledgeable lawyer can work with you to negotiate with your lenders to have the outstanding balance on such loans reduced, restructured or entirely settled. However, debt settlement is not necessarily right for everyone. For some, traditional bankruptcy may be a more appropriate option. It is important to discuss all options with a knowledgeable Savannah debt relief attorney.
An experienced attorney can negotiate with your lenders and have your long-term debt restructured so that you can breathe more easily. At Gastin & Hill, Attorneys at Law, our staff of lawyers and paralegals has decades of experience achieving manageable debt settlements for clients in Chatham, Bryan and Effingham counties. To learn whether debt settlement is right for your situation, call us at 912-232-0203 or contact us online to schedule a free initial consultation.