In Chapter 13 bankruptcy, you are not always paying all the debts you owe. You quite often pay only a fraction of your unsecured debts. There are other debts you can and likely should pay 100% of, and this guide points them out.
This blog guide notes your obligations under the law, gives some essential tips for successfully filing Georgia Chapter 13 bankruptcy, helps save time and assets, and explains how to get help from professionals.
Forms to File
In Chapter 7 bankruptcy, you first prove you are eligible to file, then list your current income, property, expenses, and your debts. It’s very similar in Chapter 13 bankruptcy. You will be proving that you’ve filed taxes, that you have the income necessary for a repayment plan, what expenses you expect, and most importantly what debts you will be paying on. You will also be creating a payment plan which can work for you over the course of 3-5 years; this is how you pay on your debts. If this sounds complex, remember you are not alone in this; a Georgia bankruptcy lawyer can help.
How much do you have to pay?
Some of your debts must be paid in full, along with the filing fees. Chapter 13 costs $274 to file with the courts, the same for all Georgia residents and U.S. citizens. You also must pay your trustee a portion of your monthly payment. Georgia bankruptcy lawyer fees are more than worth it, but you need to hire the right one. These can cost from $1,000 to $2,000.
There are other payments you have to make in full, such as alimony, child support, taxes, and wages if you run a business.
What debts should you pay?
Some debts are optional, but really should be paid in full. If you want to keep your home, pay 100% on the mortgage. You will likely be saving money on some debts, so it may be possible to pay in full. It’s the same with your car and other valuable assets you need.
Unsecured Debts
You can pay anywhere from nothing to 100% of your unsecured debts – debts you owe such on credit cards and medical bills. This will depend on your current income. If you have disposable income, it must go into your repayment plan, as designated at the beginning.
What You Need to Know About Disposable Income
After your main expenses such as home and car payments, money left over is considered disposable income, and must go to paying debts.
Getting Help
Georgia Chapter 13 bankruptcy has the advantage of being able to pay on your most needed assets, while saving money on unsecured debt. In order to reap the rewards of a successful filing, you need an experienced Georgia bankruptcy lawyer.
