Chapter 13 Bankruptcy is the second most common form of bankruptcy in Georgia, behind Chapter 7. Many Georgians use Chapter 13 bankruptcy every year to help manage their debts, and pay down their bills using a schedule that they can afford. In the state of Georgia, Chapter 13 bankruptcy could allow you to restructure your debts to lower your payments so that you can afford to pay off your debts and also pay your regular expenses.
Chapter 13 bankruptcy is a more widely available option for those of us facing insurmountable debts. Unlike a chapter 7 bankruptcy, you do not need to pass a means test, so if you can demonstrate that your debts are unreasonable, you may be able to qualify for Chapter 13 Bankruptcy in Georgia. If you have a regular monthly income that allows you to pay your bills, but you can’t afford your debt payments, you may be able to use Chapter 13 Bankruptcy to restructure your payments into a schedule that you can afford. The goal of Chatper 13 Bankruptcy is to allow you to repay your lenders, so if you could afford lower monthly payments over a longer period of time, you may be a good candidate. (You’ll need to speak to an attorney to be certain.)
Speak to an attorney to discuss the specifics of Chapter 13 Bankruptcy in Georgia, and get an idea of whether or not you may qualify.
The debts restructured during a chapter 13 bankruptcy can vary depending on your personal circumstances, so do be sure to speak to an attorney. The rules for Chapter 13 Bankruptcy in Georgia are quite complicated, and this is one area where the expertise of a local attorney will really serve you well.
In general, you can restructure many different kinds of debts in a Chapter 13 Bankruptcy. Credit cards, medical debts and personal loans are often addressed by a Chapter 13 Bankruptcy. These are all examples of unsecured debts, meaning that you owe money to a lender, but you have not put up any property to secure the loan.
On the other hand, secured debts are guaranteed by some piece of property like a car or house. These debts are often not addressed in a Chapter 7, and if you own a home or a car (and want to keep it), Chapter 13 may work well for you. During a Chapter 13 Bankruptcy, your attorney may try to negotiate with your mortgage or car lender to try to restructure your payments. This could allow you to lower your monthly payments but still keep your car, home and other possessions.
You should speak to an attorney to discuss any money owed to the IRS or student loans.