The Bankruptcy Code of 2005 had some changes for filing Georgia Chapter 13. This blog post will show you some key changes made concerning your eligibility for bankruptcy, what counseling requirements you have, and more specifically how your repayment plan in Chapter 13 will be made.
Chapter 13 Changes
While more bankruptcies are Chapter 7, because of the change in eligibility, more are filing Chapter 13. Chapter 13 has some advantages for Georgia filers, but before we go over that let’s focus on your repayment plan. Most importantly is the change in disposable income. In a Chapter 13 repayment plan, you are allowed money for necessary expenses, but any disposable income you have has to go to your repayment plan. Now in a repayment plan, you show how you intend to pay back creditors, including some payments in full and some for less than the value of the debt.
It can be complicated to note the change in disposable income. However, it means you may have to live with less money. Your disposable income must be calculated using allowed expenses by the IRS. This is based on your actual income for the past six months. In other words, the government is allowing you less money to live on. You have to subtract expenses from your own money.
Counseling in Chapter 13
You must go through credit counseling before filing a Chapter 7 or Chapter 13 plan. This counseling is supposed to show you if filing bankruptcy is really needed. At the end of your Chapter 13 plan, you must take another counseling class; after this, you can be discharged from debt.
Lawyers
Lawyers are unfortunately more expensive due to the changes in bankruptcy code. It takes them longer to help you successfully file. When you consider the main advantages of filing, the added expenses, though not easy on the pocket book, is worth it. A lawyer can explain the process much better than anyone, especially if you get a local one experienced with eligibility requirements and the court process.
Successfully Filing Georgia Chapter 13 Bankruptcy
If this all sounds like a legal book, you can always ask your lawyer to clear up the confusing parts. Hiring a bankruptcy lawyer is a must. If you can successfully file Chapter 13 in Georgia, you can save your home, car, other assets, and save money on certain debts. In some cases, Chapter 7 is better, but not all are eligible. Contact an experienced Georgia bankruptcy lawyer to get started today.
