Chapter 13 Bankruptcy

The current housing market, increasing gas prices, and soaring medical costs have sent many families and individuals into a financial crisis. If you find that you are unable to pay your mortgage and creditors will not stop calling, it may be time to seek the advice of an Atlanta, Georgia bankruptcy attorney.

What is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy allows an individual to repay all or some of their debts under a 3 to 5 year bankruptcy repayment schedule. Unlike Chapter 7 bankruptcy, which is a liquidation of all unsecured debt, Chapter 13 Bankruptcy will not automatically discharge debt but will allow an individual to keep some of their assets. Filing for Chapter 13 Bankruptcy can stop home foreclosure proceedings, repossessions, and end creditor calls or wage garnishments.

An individual may be eligible to file for Chapter 13 Bankruptcy if their unsecured debt is less than $307,675 and their secured debt is less than $922,975. An individual must also have a consistent source of income to meet the requirements of the bankruptcy repayment schedule. If you have filed for bankruptcy in the last 180 days and your petition was dismissed by the bankruptcy court due to failure to follow court orders you will not be eligible for Chapter 13 Bankruptcy. Prior to filing for any type of bankruptcy an individual must also complete a credit counseling course.

How Does Chapter 13 Bankruptcy Work?
In Chapter 13 Bankruptcy, an individual will develop a bankruptcy repayment schedule and will make payments to a trustee. Debt will be prioritized and paid according to bankruptcy law. Debt will not be discharged immediately, but will be discharged at the end of the bankruptcy schedule.

Do I Need a Atlanta, Georgia Bankruptcy Attorney?
New bankruptcy laws have increased the complexity of filing for personal bankruptcy. Many individuals who may have been eligible for Chapter 7 Bankruptcy may now be forced to repay all or some of their debt by filing Chapter 13 Bankruptcy. Current bankruptcy law is governed by federal laws and regulations and though it is possible to file for bankruptcy on your own, it is not recommended. Chapter 13 Bankruptcy can be complicated. There are numerous court filings, paperwork and deadlines. A re-payment schedule must also be developed and completed.

If you need a bankruptcy attorney, an Atlanta bankruptcy lawyer will meet you for a free consultation to discuss your financial situation and determine if Chapter 13 Bankruptcy is right for you.