There are a few different reasons why you might choose to file for Chapter 13 bankruptcy in Georgia. The number one reason why a lot of people file for Chapter 13 is that they do not qualify to file for Chapter 7. Most would prefer to get rid of their debts without having to pay anything to do so. They would also like to get rid of the debt in a fast period of time as allowed in a Chapter 7 bankruptcy. This being said, there are still many reasons why you would want to go ahead with a Chapter 13 bankruptcy case instead.
Ineligible for Chapter 7
There can be a few different reasons why you would not be able to file for a Chapter 7 which would lead you to file for Chapter 13 bankruptcy in Georgia. The two main reasons are:
- You make too much money. If your income over the last six months exceeds the median average, you will be required to file for a Chapter 13 rather than a Chapter 7.
- You have too much disposable income. The means test will determine what your disposable income is. This is where your income over the last six months is averaged out. Your expenses and debts are removed from this as monthly payments. If there is still money remaining, it means you have the ability to pay your debts and you do not pass the means test.
Keeping Property
Many people would like to keep their homes or their cars even after they have gotten behind on their payments. Chapter 13 bankruptcy in Georgia will allow you to get back on track with these payments and still retain possession of your property through an agreement with the creditors to pay balances due and to stay on track with future payments. In a Chapter 7, all non-exempt property will be resold in order to try and pay down your debt.
Desire to Repay Debt
There are a lot of people who simply will not feel right unless they have paid back what they owe to their creditors. A Chapter 13 bankruptcy in Georgia will allow you to completely repay your debts. The reason why many will choose this option is because they have had a hard time of making the payments in the past and require the assistance of the court to get them back on track. Some simply lack the discipline to make the payments and need the trustee’s help to provide a structured environment for repaying the debt.
You Have a Personal Debt with a Cosigner
Often people will file a Chapter 13 bankruptcy in Georgia because they do not want the person who is considered to be a co-debtor on a loan to be held responsible for your inability to pay. The court will allow you to repay the debt through the court without the co-debtor ever having to be left holding the bag on paying the debt. This will help to prevent strained relationships.
Related Posts
- Who Can File for Chapter 7 in Georgia?
- Chapter 13 Bankruptcy in Georgia
- Georgia Chapter 13 Bankruptcy Paperwork Requirements
- Changes to chapter 7 and chapter 13 bankruptcy laws for Georgia bankruptcy filings
- Remaining Debts After Chapter 13 Bankruptcy in Georgia
- Chapter 13 Bankruptcy in Georgia Overview
- Business Debt and Chapter 7 Bankruptcy in Georgia
- Discharge of Chapter 13 Bankruptcy in Georgia
- 6 Reasons you May Have to File a Chapter 13
- Eligibility for Chapter 13 Bankruptcy in Georgia
