Debt Workouts in Georgia

Sometimes a Debt Workout is a better alternative than bankruptcy.

wadeIn simple terms, a debt workout is a negotiated, formal debt modification between all involved parties. Instead of filing for bankruptcy to ease a financial burden, all parties utilize a professional counselor (professional bankruptcy attorney) to help work out a solution agreed to by everyone.

Since the 2005 changes made to bankruptcy laws which made it more to file bankruptcy, debtor and creditor workouts are now more common.
Compositions and extensions are just other names for debt workouts that you might hear as you begin your research. The difference is the two is that a composition is where the creditors agree to a partial payment and an extension is where creditors agree to extend or delay the payment time terms. Of course, there can be a combination of the two.

Both compositions and extensions are legal contracts and as such have certain contract law principles that must be adhered to. It is vital to get professional advice to make sure everything is done correctly.

How debtor workouts affect creditors.

Another reason for legal help is that all creditors need to be involved. If a creditor decides not to be involved in a debtor workout, that creditor still has legal recourse to pursue other means to collect debts owed which means more issues for the debtor.

Advantages of a debtor workout.

The biggest advantage to a debtor workout is that the debtor avoids bankruptcy while achieving similar results. If a workout allows a debtor to reduce or eliminate debt without the stigma of bankruptcy, it leaves the debtor with a less negative credit score. In addition, the debtor retains the right to a future bankruptcy should the need arise.

Disadvantages of a credit workout.

As the workout is completely voluntary, it can be challenging to get all parties involved to the table and agree to a workable solution. Some creditors want payment in full. There have been cases of creditors changing their minds after an agreement has been reached and requesting full payment, although this is rare.

First Steps for a Debtor Workout

The first step to a successful debtor workout in Georgia is to call Wade Everett. Wade has years of experience bringing all parties together and working towards a solution.

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WILL and ESTATE PLANNING SPECIALS

We are offering substantial discounts on all estate planning now though the end of December. We will prepare Wills, Advance Directives for Health Care, and Financial Powers of Attorney at these discounted fees.

Individual $300.00 Normally $500.00
Married couple $350.00 $550.00
Minors trust add $100.00
Taxable or complex estates will be quoted when we discuss your needs.
We will send you an information sheet and I will call you to discuss choices and decisions, then we will prepare your documents and you will only need to come to the office one time to sign them. You do not have to complete your documents before December 31 but we encourage you to make this a priority.

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We strive to provide superior legal services in a personal and caring environment with specially trained staff to make your personal needs a priority. Our goal is to minimize stress caused by important legal decisions, and become the old fashioned “Family Lawyer” for you and your family.

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