To file for Chapter 13 in Georgia, you will need to be able to meet certain requirements. These are necessary for your protection as well as to protect your creditors from losing money on debts that have been created in good faith. Getting to know your eligibility to file Chapter 13 will help you to understand the best course of action for your bankruptcy case. It is always a good idea to talk with a professional bankruptcy attorney when looking to file for bankruptcy. This way you will know all of your options and whether you are eligible.
Chapter 13 is Not for Businesses
To file for Chapter 13 in Georgia, you cannot be a business. Businesses looking to accomplish the same goals as in a Chapter 13 case will be asked to file a Chapter 11 instead. Those who own a business have the option of including business related debts in a personal Chapter 13 case. The one exception to this rule is with stockbroker or commodity brokers. They are not allowed to file using a Chapter 13 case even for personal debts incurred outside of work. Reorganization of debt through Chapter 13 is intended only for those individual who need help in repaying debt.
Sufficient Disposable Income is Required
One of the most important parts of when you file Chapter 13 in Georgia is that you make enough money to repay your debt. Your bankruptcy attorney will work with you to look at your income, your expenses and your debt. You will have to have enough disposable income after paying for necessary expenses in your household, to pay off your existing debt within a 5 year period. Married filers have the option to use income from a spouse is they do not work or do not make enough money to pay off their debts in full.
You Cannot Owe Too Much
When filing for Chapter 13 in Georgia, the court will look at the amount debt you are holding. You will not be able to file for Chapter 13 if you have more than $1,010,650 in secured debt. These are debts which are created with collateral backing the debt. This is usually a car loan, mortgage or jewelry. Additionally, you will not be allowed to have more than $336,900 in unsecured debts. These debts include credit cards, medical bills and unpaid utility bills. These are bills which used to be discharged after secured debt was repaid, but after the laws changed in 2005, this requirement also changed.
Your Income Taxes Must be Current
In order to file for Chapter 13 in Georgia, you will have to be current on the payments for your taxes within the last four years. You will need to provide proof to the court that you have paid your taxes and that you are not in arrears with the government. If you need additional time to repay your taxes, you will be given an extension by the court. However, you will not be able to move forward unless you prove that you have paid your taxes in full.
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