Filing Chapter 13 bankruptcy in Atlanta

Chapter 13 bankruptcy, also called reorganization bankruptcy, or wage earner bankruptcy, uses the income of a debtor over time to pay what is owed creditors. Filing Chapter 13 in Atlanta or elsewhere allows consumers to restructure their debt payments and keep assets. While it is sometimes referred to as a wage-earner plan, Chapter 13 is available to persons on welfare or with other kinds of regular income.

Chapter 13 differs from Chapter 7 bankruptcy in Atlanta. Chapters 7 and 13 bankruptcies can both be used for personal bankruptcy in Atlanta. But a key difference is that while Chapter 7 erases most debt, it also requires liquidation or selling off assets. Under Chapter 13 bankruptcy, a debtor enters into a repayment plan to remove debts and does not sell off assets.

Hiring a skilled Chapter 13 bankruptcy lawyer in Atlanta is a wise decision to determine if Chapter 13 is the appropriate route to take to get you back on your financial feet.

The Chapter 13 Repayment Plan

The heart of any Chapter 13 bankruptcy is the repayment plan. By following this plan, remaining debts are wiped out. Before this can happen, the debtor must provide to the court proof of such items as being current on alimony and child support payments. A debtor must also complete a budget counseling session with an approved U.S. Trustee agency.

Chapter 13 has many advantages, including the prevention of secured creditors, such as mortgage companies and banks, from repossessing property of the debtor. A Chapter 13 plan may also extend the amount of time to pay off debts and it can reduce the amount to be paid. In addition, the plan suspends legal and collection actions against a debtor while it is in effect, usually three or five years.

Determining Eligibility

Chapter 13 bankruptcy requires that you show the court that you have an income that allows you to meet your payment obligations. If the income of a debtor is irregular or too low, or if total debt burden is too high, the debtor is likely to be found ineligible to file for Chapter 13.

Steps for filing

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