When you file for Chapter 13 bankruptcy in Georgia, you are working towards what is known as a discharge. This is where you have completed everything in regards to your repayment plan and your debts are either removed completely or you are well on your way to reestablishing a relationship with your creditors. The end result that all parties are hoping for is that the debts will be repaid and that they will be able to move on. In some cases, the debts will not be paid in full, but your responsibility will have been legally met at that time.
The Effect of the Discharge
Once you are discharged from Chapter 13 bankruptcy in Georgia, it means you have met all the requirements of your repayment plan. Usually the only kinds of debts which will remain at this time are those which have more of a long term nature. These will have to be agreed upon with the creditor as a part of the bankruptcy proceedings. Usually these terms will be exactly the same as before you got started with your bankruptcy. In some cases the agreement will be modified to lower payments or interest rates to make it easier for you to pay.
Because discharge is the goal of a Chapter 13 bankruptcy in Georgia, it is important that all information is provided honestly at the filing of the case. This will allow you to come up with a repayment program you will actually be able to stick to. You will then be able to make the payments and not have your case dismissed. This is made so important by the fact that the majority of Chapter 13 cases filed do not make it to discharge because the debtor is not realistic in their ability to repay debts to creditors.
The Difference Between Chapter 13 and Chapter 7
It is important to note that Chapter 13 bankruptcy in Georgia is vastly different from Chapter 7 in the way your debts are discharged. Because you are repaying loans rather than looking to have them removed from what you are expected to pay, you can include debts which would be excluded from a Chapter 7 bankruptcy. Examples of what can be included in Chapter 13 which are not allowed in Chapter 7 include:
- Debts incurred from divorce or separation proceedings.
- Tax obligations which are not dischargeable.
- Malicious injury to property, but not to a person.
Hardship Discharge in Relation to Chapter 13
There are circumstances which can arise after a confirmation hearing which will cause the debtor to not be able to complete the repayment plan. It is possible in these kinds of hardships to have the rest of the debt discharged. In order to qualify, your circumstances will have to be out of your control and you will not be able to be found at fault for the circumstances in any manner. Secondly, your creditors will have to have been able to receive at least as much as they would have should you have filed for Chapter 7 bankruptcy in Georgia. Last, the circumstances you are under will have to omit the possibility of a modification to your plan. Keep in mind even this will not allow you to get rid of any remaining debt which would not have been discharged in a Chapter 7.
Related Posts
- Chapter 7 Bankruptcy in Georgia Debt Discharge
- Who Can File for Chapter 7 in Georgia?
- Remaining Debts After Chapter 13 Bankruptcy in Georgia
- Debts That Can Remain After Chapter 7 Bankruptcy in Georgia
- Georgia Chapter 7 Bankruptcy Process Overview and Highlights
- When Filing Chapter 7 Bankruptcy Makes Sense
- Preparing for a Chapter 7 Bankruptcy in Georgia
- Exempt vs. Non-Exempt Property in Chapter 7 Bankruptcy in Georgia
- Getting to know the Parties Involved in Chapter 7 Bankruptcy in Georgia
- Release of Bankruptcy Information in North Georgia
