If you aren’t eligible for Chapter 7 bankruptcy in Georgia, likely because you make too much, you may fear losing major assets as the bills pile up. Actually, you have more options than you might think, namely filing Georgia Chapter 13 bankruptcy.
What is Chapter 13 bankruptcy?
It’s clearly different than Chapter 7 bankruptcy. In Chapter 7, your debts are discharged in a matter of months, but you may lose assets. In Chapter 13, your debts are paid back by you and you have the opportunity to keep all your assets if you keep up with the payments over the 3-5 year repayment plan.
And that’s actually the big advantages and disadvantages of both Chapter 7 and Chapter 13. In Chapter 7, you can discharge debt, but you may lose assets; Chapter 13 buys you time to pay back debt which you have to pay out of your pocket, but you can keep more assets if you stay current.
Georgia Foreclosure Options
If you’re making a lot of money on paper, you may think any form of bankruptcy is out of reach. There are cases where you make too much to actually file for it, usually depending on the median income for the state you file in, but in most cases individuals still have the option to file Chapter 13 bankruptcy in Georgia.
The best part about Chapter 13 bankruptcy isn’t that you buy time to pay back debts; the best part if you can save your Georgia home from foreclosure. It’s clearly a big advantage over Chapter 7 bankruptcy, where you usually lose nothing but often lose major assets.
How Chapter 13 Stops Foreclosure
According to Bankruptcy Code, you can stop foreclosure proceedings by filing Chapter 13 bankruptcy in Georgia. This means if you know the bank is going to foreclose soon, you can stop it by filing under this chapter. You can pay back delinquent mortgage debt over a 3-5 year period, easily attainable if you are working.
It also means you must stay current on your mortgage payments. That’s what many home owners ignore. Just filing for Georgia Chapter 13 bankruptcy does not necessarily mean your home will be protected; you must pay via the debt repayment plan created.
Extend Other Debts with Georgia Chapter 13 Bankruptcy
Also, if you have debts beyond your home, perhaps a car loan and credit debt, you can pay these back over the course of your Chapter 13 bankruptcy plan. This plan will be created prior to the bankruptcy, as required by law, and will go over how you intend to pay debts.
Creditor Problems?
The phone rings and you want to scream … creditor harassment is never fun to even think about, but it’s a reality. By filing for any bankruptcy, you can stop creditor harassment. In the case of Chapter 13 bankruptcy, your trustee will be paying back your creditors; you will have no direct contact with them anymore. This means no more creditor harassment.
Hiring a Georgia Bankruptcy Attorney
How do you know if you can file under Chapter 13 in Georgia? What are the fees? What will the debt repayment plan entail? Reading on law is no substitute for hiring a professional Georgia bankruptcy attorney. That’s the first step in getting a second chance financially.
