How to Avoid Bankruptcy in Georgia

There may be a time when you are facing financial problems and think that bankruptcy may be your only option. You may also be thinking about contacting a Georgia bankruptcy attorney but worry about what filing bankruptcy will do to your reputation.

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There are things you can do to help yourself avoid bankruptcy and resolve your financial situation. 

Georgia bankruptcy lawyer Tyler Moffitt wants you to be aware that you can avoid bankruptcy and is here to assist you in exploring other options so you can make the best, most informed decision about your financial future.

Below is a list of steps you may be able to take to avoid filing for Georgia bankruptcy protection. They include:

  1. Work with a credit counselor: In Georgia, there are reputable, licensed credit counseling firms that can assist you with such things as negotiating with creditors, forming a repayment plan, create an effective budget, and work with you to help you regain your financial footing.
  2. Sell off Assets: If you file for a Georgia bankruptcy, you may not be able to retain all of your assets. While some exemptions are available, many times you own more than you can claim, and those items will be sold. The funds will then be used to pay your debts.  You can do this yourself and in the process, may avoid having to file for a Georgia bankruptcy. 
  3. Slowly Pay Your Way Out of Debt:  If you decide to file for a Georgia Chapter 13 bankruptcy, you will be making payments that will eventually get you out of debt. You can accomplish the same thing without filing for a Chapter 13 bankruptcy by paring down your expenses. For example, you may have to give up cable tv, or high-speed internet. 
  4. Speak With Your Creditors: If you end up having to file for a Georgia bankruptcy, your creditors will receive very little if any money at all. Your creditors would rather get some money from you than none at all.  You can call your creditors and tell them that you are trying to avoid having to file for Georgia bankruptcy protection and ask if they will work with you. They, in return, may lower your monthly payments, lower your interest rate, or both. 
  5. Ask Your Friends and Family For Help:  As a rule, it’s generally not a good idea to borrow money from your family or friends. However, if it will help you avoid having to file for Georgia bankruptcy protection it may be worth it. Before asking anyone for help, you need to come up with a plan on how you will pay them back to present to them and then stick to it.
  6. Negotiate a Settlement With Creditors and Debt Collectors: Many times you can negotiate with debt collectors and creditors to accept less money then what you owe to settle your debt. As soon as you reach a settlement amount, you will have to pay that off in one payment, so make sure you can afford the amount you agree on.
  7. Create Your Own Plan to Avoid a Georgia Bankruptcy: You can combine many of the tips offered in this article to create a plan that works for you in order to avoid filing for a Georgia bankruptcy. There are several ways you may be able to decrease your spending and pay off your debt.  Some ways include:
  • Don’t eat out a lot. Cook your own food and pack your lunches for work
  • Use coupons
  • Reduce your spending on clothes.
  • Re-evaluate services such as spa visits, salon visits, cancel gym memberships 
  • Get rid of some assets, perhaps have a garage sale or list your unwanted items on eBay, Etsy, or other online selling sites.

If you are facing financial problems and aren’t sure about your options, call Georgia bankruptcy lawyer Tyler Moffitt. He offers Georgia bankruptcy services and can help you decide what options are available to you based on your individual circumstances.

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