Chapter 13 Bankruptcy Georgia: Everything You Need to Know
The Basics of Chapter 13 Bankruptcy Plan in Georgia
A bankruptcy that involves a payment plan is referred to as Chapter 13. Rather than paying your creditors individually, the court reorganizes your debts, and you make one monthly payment to a bankruptcy trustee. This method allows you to repay your debt in 3 to 5 years.
In many cases, Chapter 13 bankruptcy is the most effective strategy to save your house from being foreclosed on and your car or personal property from being repossessed. You also get to retain all the goods you’ve ever worked to acquire since you’re not immediately paying off your debt through liquidation.
The “automatic stay,” as defined by Georgia law, freezes any collection activities immediately after filing for bankruptcy. This court ruling will secure you from creditor harassment while paying off your debts.
What Debts Can Be Discharged in Chapter 13?
Bankruptcy doesn’t mean that you never have to repay your debt. The goal is to repay as much as you can afford through a structured payment plan.
A Chapter 13 bankruptcy will not discharge the following debts:
- Child support payments
- Alimony
- Student loans (with some exceptions)
- Fines and penalties imposed by governmental units
- Back taxes
- Most secured debts such as a mortgage or car loan
If you’re current on your payments, you get to keep the property that serves as collateral for the debt. However, if you’re behind on payments, you can still work out a payment plan to bring the account up to date and keep the property.
Filing Chapter 13 Bankruptcy in Georgia
You may feel you’re carrying the world’s weight on your shoulders if you’re in debt. It can be all too easy to get behind on your bills when you’re having financial hardship, but it’s virtually impossible to catch up. Until you can make the payment you skipped, the next one is overdue, and your creditor has charged you an excessive late fee plus interest.
It may feel like you have no choice but to watch yourself sink deeper into debt. However, now is the moment to act. Filing for bankruptcy can relieve you of the burden of indefinite debt, allowing you to reclaim control of your life.
For your free debt consultation, call or contact Bournakis & Mitchell at (706) 252-9353.
Filing Chapter 13 Bankruptcy in Georgia
You may feel you’re carrying the world’s weight on your shoulders if you’re in debt. It can be all too easy to get behind on your bills when you’re having financial hardship, but it’s virtually impossible to catch up. Until you can make the payment you skipped, the next one is overdue, and your creditor has charged you an excessive late fee plus interest.
It may feel like you have no choice but to watch yourself sink deeper into debt. However, now is the moment to act. Filing for bankruptcy can relieve you of the burden of indefinite debt, allowing you to reclaim control of your life.
For your free debt consultation, call or contact Bournakis & Mitchell at (706) 252-9353.
How to File Chapter 13 Bankruptcy in Georgia
Your Chapter 13 attorneys will have to file the necessary paperwork with the local Georgia bankruptcy courts to start the process. Probably you are looking for the Atlanta Bankruptcy Court. The Federal Court Finder can help you find the closest court to you.
In Georgia, you must file in one of the following three districts:
- Georgia Middle District
- Georgia Northern District
- Georgia Southern District
The judge will order an immediate stay prohibiting your creditors from contacting you after filing your bankruptcy forms. This automatic stay tells your creditors to cease foreclosure, repossessions, debt collection lawsuits, and garnishments on wages.
To be eligible for Chapter 7, you must pass a “means test,” demonstrating that you lack the financial resources to repay your debts.
The measure considers how much disposable income you have after paying your necessary monthly expenses. If the median income in your state is below the national average, you automatically qualify. Millions of Americans have regained control of their lives due to bankruptcy.
You can petition for Chapter 13 regardless of your income. A bankruptcy trustee will assess your family and expendable income to determine how much you can pay each month, but you will never be rejected as a result.
How Much Does It Cost to File a Chapter 13 in Georgia?
A Chapter 13 bankruptcy allows a person to restructure their obligations and pay off any outstanding expenses over three to five years.
A Chapter 13 loan modification is based on income, and creditors pay their debts in an organized and court-supervised manner. According to the authorized program, the judge will dismiss any unsecured debts that did not need monthly payment after most payback periods.
The repayment plan is established when you file for bankruptcy in Georgia. The amount of money owed to creditors determines the length of your payment period.
It only requires one monthly installment, regardless of how much debt you have to pay back. Chapter 13 bankruptcies are usually more affordable than other options because so many debts are resolved with these terms.
Your Chapter 13 attorney will prepare the bankruptcy petition on your behalf, so you don’t have to worry about putting this paperwork together.
Filing Fee for Chapter 13 Bankruptcy in Georgia
Chapter 13 bankruptcy filing will set the taxpayer back $313 at the very least. The actual filing fees and court charges will differ depending on where the debtor applies for bankruptcy.
Supplemental court filings (updated schedules, monthly payment plan change) and attorneys’ costs are usually linked with Chapter 13 bankruptcy.
Contact our Chapter 13 lawyers as soon as possible for legal guidance and discover more about how we may help you with your debt relief under the bankruptcy code.
How Long Does It Take to File Bankruptcy Chapter 13 in Georgia?
If you want to declare bankruptcy in Georgia, the time taken to file and get a discharge is determined by whether you file a Chapter 7 or Chapter 13 bankruptcy case. To file for Chapter 13 bankruptcy in Georgia, a person must have lived in the state for at least six months before filing.
Once you’ve established long-term residency, the whole bankruptcy filing process can take anywhere from four to six months for a simple case and a bit longer for more complicated issues. Some of this time is set aside for the court to determine which of your assets fall under the Georgia bankruptcy exemptions, as exemption laws dictate which assets you can keep.
Do Chapter 13 Bankruptcies Work?
Bankruptcy is a drastic financial measure, but it may be a viable alternative for those drowning in debt. If you have a consistent income and wish to maintain your house or car, Chapter 13 bankruptcy may be the best option.
If you’re thinking about it, a credit counselor and/or a bankruptcy lawyer can help you evaluate the benefits and drawbacks of filing for bankruptcy in your particular case. If you determine that Chapter 13 is the appropriate option, make sure you stick to your repayment schedule. If you can’t, you risk losing the assets you were trying to safeguard.
Chapter 13 filers must repay creditors in whole or in part for three to five years. However, because of the payment schedule, Chapter 13 might provide benefits that are not accessible under Chapter 7.
For example, you can preserve your home from foreclosure or your automobile from seizure and maintain all your possessions. This Chapter can be used to compel a creditor into a payment plan if you need more time to repay a debt that you can’t discharge in bankruptcy.
What is this chapter’s main flaw? It’s not always cheap. However, the right bankruptcy attorney can help you secure reasonable monthly plan payments.
Chapter 13 Bankruptcy Attorney in Northwest Georgia
Chapter 13 bankruptcy establishes a debt repayment plan that consolidates your debts and any vehicle or mortgage delinquency into one structured payment. It also stops pending collection activity and enables clients to save their homes or cars through debt restructuring.
What’s more, this chapter is more flexible than Chapter 7 bankruptcy. With Chapter 13, you can opt to repay creditors 100 percent of their claim or settle for less. This Chapter also allows for different payment plans, while Chapter 7 usually mandates a flat repayment schedule.
Chapter 13 bankruptcy is an option if your mortgage company has filed a foreclosure lawsuit and you want to stop the proceedings. The court can even suspend foreclosure action for up to five years while you’re under the protection of this chapter.
Diligent Representation for Chapter 13 Bankruptcy Cases
Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows debtors to keep all their property but requires them to pay back all or a portion of their debts within three to five years.
Before filing for a Chapter 13 bankruptcy, you must complete credit counseling with an agency approved by the United States Trustee’s office. After counseling, you can file a packet of information and pay a filing fee.
Who is Eligible for a Chapter 13 Bankruptcy?
- Individuals, not business entities
- Debtors who have not previously discharged debt with a Chapter 13 bankruptcy in the last two years or with a Chapter 7 bankruptcy in the previous four years
- Debtors who have fulfilled the required credit counseling
- Debtors who have filed their income tax returns and who possess sufficient income to pay off their debts
We work for bankruptcy solutions that allow you to move forward with your life free of debt, once and for all! Call our caring legal team at (706) 350-6075 to get started.
Serving Clients from Our Offices in Cartersville, Rome, & Dalton
Chapter 13 bankruptcy is limited to debtors with less than $336,900 to unsecured creditors such as credit card debt, medical bills, and personal loans and less than $1,010,650 in secured debts.
The debtor who files must provide a repayment plan that repays some debts in full. These include priority debts such as child support, alimony, and non-dischargeable payments, secured debts such as mortgage payments or vehicle loans, judicial liens, and tax liens.
At Bournakis & Mitchell, P.C., our Northwest Georgia bankruptcy lawyer is well equipped to handle various issues that may arise and can walk you through the process. As our client, you can expect the following:
- You are never treated like another number
- Start your case with a risk-free consultation
- Solutions that focus on long-term financial debt relief
- Non-judgmental advocacy when you need it
- Personal attention directly from our legal team
- Use decades of experience to your benefit
The Northwest Georgia bankruptcy attorney at Bournakis & Mitchell, P.C. gives each client personal attention and can help determine the best option for filing bankruptcy. Contact our office today for a free consultation.