Just as with Chapter 7 bankruptcy, when considering whether or not to file Georgia Chapter 13 bankruptcy, you need to be aware of your rights. Most all Georgia residents have the right to file Chapter 13, unlike Chapter 7. When can’t you? How do these rights help you? What if you can’t afford Chapter 13? This blog guide can help.
Your Rights
Unless you owe too much money, there are no limits on whether or not you can file Chapter 13 bankruptcy. The only point to be aware of is when your actual debts are in the hundreds of thousands or more. Your rights include the ability to file, to stop creditor harassment, to halt collection efforts, to avoid foreclosure, to stop repossession of other assets, and avoid lawsuits based on money you owe.
Eligibility
If you have $336,900 or more in unsecured debt, or if you have $1,010,650 or more in secured debt, then you are not eligible to file for Chapter 13 bankruptcy. In these cases, you need to speak with a lawyer. These numbers are the same under federal law for all Georgia residents and U.S. citizens.
How does Chapter 13 help?
Georgia has been hit hard by foreclosures and repossessions. Common problems include loss of jobs, high medical debt, and credit card debt. In many cases, Chapter 7 can help you more. If you have a low income job or no job at all, and your debts are in the tens of thousands, you likely should file Chapter 7. This is because you probably cannot afford a Chapter 13 repayment plan.
On the other hand, if you make too much money you may not be eligible for Georgia Chapter 7. And there are many times when a Chapter 13 bankruptcy is best. This includes times when you do make enough money, you’re in danger of losing your home to foreclosure or car to repossession, or if you have debts you can’t discharge. You can’t discharge all debts with Chapter 7; if you have tax, alimony, and child support debt, you can’t discharge these. Because you can pay on any debts with Chapter 13, and because it can effectively stop a foreclosure before it begins, many Georgia residents consider this their best option.
How does it work?
You should first hire an experienced bankruptcy attorney. Unless you’re an experienced lawyer yourself, there are rarely times when you can handle the complexity of a Chapter 13 bankruptcy. Once you hire a lawyer, you’ll be filing with a local Georgia bankruptcy court. This is where you begin. Along with the petition, you’ll be showing proof of income, assets you have, and debts you owe. You will then pay the court fee of $274, the same everywhere for filing Chapter 13, and the process will begin. A judge can put an “automatic stay” on your case, which will at the least delay foreclosure if not stop it entirely, as well as stop collections against you, including any repossessions. This buys you time to save your home, car, and other assets.
By filing Chapter 13, you are agreeing to pay some if not all your debts over a manageable period, typically 3-5 years. Unlike other debt repayment plans, these will be overseen by the court.
While this process does take longer than a Chapter 7 bankruptcy, it can help you manage more debts and save your home. It’s your right to file Chapter 13 bankruptcy. If you are ready to begin, or have more questions, contact an experienced Georgia bankruptcy lawyer.
