Information about Chapter 13 Bankruptcy Eligibility in Georgia
The bankruptcy group at Brian R. Cahn & Associates, LLC has helped many people in northwest Georgia use Chapter 13 bankruptcy to restructure debt and negotiate more manageable payment terms with their creditors. Here, we provide information about Chapter 13 eligibility, but please keep in mind that specific requirements change and every bankruptcy case needs to be looked at individually. Come to one of our offices in Cartersville, Calhoun, Dalton or Dallas to learn more.
How Chapter 13 Works
Chapter 13 bankruptcy enables individuals with regular income to develop a plan to repay all or part of their debts. The debtor proposes a repayment plan to make installment payments to creditors over three to five years depending on income. If the debtor’s current monthly income is less than Georgia’s median income, the plan is usually for three years, and if the debtor’s current monthly income is greater than Georgia’s median income, the plan generally must be for five years. During this time, creditors are forbidden from starting or continuing collection efforts. For more information, please see our Chapter 13 bankruptcy page.
Who is Eligible for Chapter 13?
Any individual is eligible for Chapter 13 relief as long as his or her unsecured debts, such as credit card debt and medical bills, are less than $360,475 and secured debts, such as home mortgages and vehicle loans, are less than $1,081,400. (These amounts are adjusted periodically to reflect changes in the consumer price index.) Corporations and partnerships are not eligible for Chapter 13; however, self-employed individuals and those operating an unincorporated business may file for Chapter 13. For more information about business bankruptcy, please see our Chapter 11 bankruptcy page.
Before declaring Chapter 13 bankruptcy (or any other chapter), the debtor must receive credit counseling from an approved credit counseling agency within 180 days before filing. There are exceptions in emergency situations, or when the bankruptcy trustee has determined that there are insufficient approved agencies to provide the required counseling.
If you can no longer manage your debt, it is important to talk to an experienced bankruptcy lawyer as soon as possible so that you do not unnecessarily lose any rights or assets. Our attorneys will take the time to fully understand your financial situation, and assess whether you are a good candidate for Chapter 13 or another type of bankruptcy.
Talk to a Local Bankruptcy Law Firm about Filing for Chapter 13 in Georgia
Our bankruptcy lawyers are committed to helping individuals through the Chapter 13 bankruptcy process, from the time you file for bankruptcy through the development and court confirmation of your repayment plan. With us, you can be confident that you will not only make it through bankruptcy, but you will be on the path toward a positive financial future. Contact our offices today for a free consultation.