Chapter 13 bankruptcy in Georgia is a very different process than filing for Chapter 7 bankruptcy in Georgia. This is little more than organizing your debt and coming up with an agreement to pay off debt through the state court. There are advantages to Chapter 13 like the fact that you will not have to give up property to settle any debts. The main disadvantage that most people see is that you will have to pay off your debts instead of simply having them removed from your record through the bankruptcy court. The other thing people do not like about it is the amount of time it takes to finish a Chapter 13 repayment plan.
Eligibility for Chapter 13
To file for Chapter 13 bankruptcy in Georgia, you will need to meet the requirements. This is generally based on how much debt you have as well as how much money you make. If you do not make enough money to repay your debts, you will have to file a Chapter 7 instead and give up some of your property as a result. To file Chapter 13, you cannot have more than $1,010,650 in secured debt. You can also not have more than $336,900 in unsecured debt.
Process of Filing Chapter 13
For many the first step in the process of filing Chapter 13 bankruptcy in Georgia is to get a good bankruptcy attorney. This is because of all the paperwork which must be filed along with the lengthy process of actually filing the paperwork through the court. You will also have to pay the court fees for the filing which will include $274 along with a fee to the trustee’s office for their services in working on your case. Failure to pay for the fees attached to the filing will cause your case to be dismissed by the court and you will be responsible once again for your debt.
Debts You Will Pay
In most cases you will be expected to pay all of your debts in full in order to satisfy the Chapter 13 bankruptcy in Georgia. The debts you will be paying off will be ranked in order of importance by the court so that those which are deemed to be more important will be given first priority. Failure to pay the debts will not necessarily mean that you will be further penalized. If you can show that you have suffered a financial hardship, the trustee’s office reserves the right to modify the repayment. They also have the option to discharge some of your debt and your case.
How Long Will You Pay
When filing for bankruptcy in Georgia, you should expect that you will be paying off you debt for five years through the repayment program. This will all depend on how much you owe in the first place. Those who earn less money will be required to pay off their debt in a faster period of time. This is to prevent the creditors from tacking on additional interest which will cause you to have further difficulty in repaying your debt.
Related Posts
- Georgia Chapter 7 Bankruptcy Process Overview and Highlights
- Chapter 7 Bankruptcy Overview
- Chapter 13 Bankruptcy in Georgia
- Discharge of Chapter 13 Bankruptcy in Georgia
- When to File Chapter 13 Bankruptcy in Georgia
- Mandatory Credit Counseling for Chapter 13
- Changes to chapter 7 and chapter 13 bankruptcy laws for Georgia bankruptcy filings
- Eligibility for Chapter 13 Bankruptcy in Georgia
- Remaining Debts After Chapter 13 Bankruptcy in Georgia
- Business Debt and Chapter 7 Bankruptcy in Georgia
