What You Need to Know About Debt Relief in Georgia
By Space Coast Daily // July 24, 2023
If you are new to debt relief and specifically looking for information about the options available in Georgia, this article is for you. We will explore debt management programs in Georgia and provide an overview of each approach, including debt consolidation, debt settlement, and bankruptcy.
Additionally, we will explore the debt limitations in Georgia and highlight key factors to consider when navigating the debt relief landscape.
Debt management in Georgia
In Georgia, United States, debt management involves using different approaches and initiatives to assist people and families in regaining financial control and overcoming debt. As of March 8, 2022, the average interest rate on credit cards in Georgia is around 16.7%. It is essential to act fast and address unpaid debts to prevent additional financial pressure. If payments are skipped, interest rates may increase to 20-25%, which can worsen the situation.
What you need to know about debt relief in Georgia, US
In order to understand debt relief in Georgia, US, these are the key points you need to know.
Debt consolidation
Debt consolidation is a widely used debt management strategy in Georgia. It involves merging multiple debts into a single payment plan or loan. By consolidating their debts, individuals can simplify their repayment process, potentially obtain lower interest rates, and make affordable monthly payments. Georgia offers debt consolidation options through various banking institutions, credit counseling agencies, and specialized debt consolidation companies.
Debt settlement
In Georgia, debt settlement is a debt relief option where individuals negotiate with creditors to settle their outstanding debts for less than the total amount owed. This can help reduce their overall debt burden. However, it’s important to keep in mind that debt settlement may have consequences such as negative impacts on credit scores and the possibility of facing collection efforts.
Bankruptcy
Bankruptcy might sound dreadful and worrisome for some people, but for others, it is the only debt-relief solution. Filing for bankruptcy allows individuals to regain control of their finances without risking the loss of essential possessions, including their homes. The two major types of bankruptcy that many people turn to are Chapters 7 and 13. Chapter 7, also known as “liquidation” bankruptcy, involves the auctioning of non-exempt assets by a court-appointed trustee, with the proceeds used to pay off obligations. On the other hand, filing for Chapter 13 bankruptcy allows individuals to retain their assets while making regular payments to a trustee to gradually pay down their debt.
Debt limitations in Georgia, US
In Georgia, there are legal limits on debt collection known as debt limitations. For most types of debts, the statute of limitations is six years from the date of the last payment or acknowledgment of the debt. After this period, creditors are not permitted to sue you to collect the debt. Additionally, creditors cannot seize exempt property such as your primary home, personal property, retirement assets, or wages. Furthermore, the homestead exemption in Georgia safeguards a certain portion of your primary dwelling’s equity from being seized.
Debt collection in Georgia, US
Debt collection is regulated by both federal and state laws in Georgia. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from engaging in unfair practices, while the Georgia Fair Business Practices Act provides additional protections for consumers. Debt collectors are required to provide debt validation upon request, and they are prohibited from making false statements, harassing individuals, or misrepresenting the debt.
