Filing Chapter 13 bankruptcy in Georgia allows individuals to reorganize their debts into a manageable repayment plan over 3 to 5 years. This option helps you retain assets like your home or car while addressing overdue debts and avoiding foreclosure or repossession.

At Morgan & Morgan, we’ve helped countless Georgia residents regain control of their finances through personalized bankruptcy solutions. Our experienced attorneys are here to guide you through the Chapter 13 process, ensuring the best outcome for your financial future.

 

What Is Chapter 13 Bankruptcy in Georgia?

Chapter 13 bankruptcy is a debt reorganization process that lets individuals repay creditors over time while keeping their assets. Known as the “wage earner’s plan,” it’s designed for individuals with a regular income.

 

 

Who Qualifies for Chapter 13 Bankruptcy in Georgia?

You qualify for Chapter 13 bankruptcy in Georgia if you meet the following criteria:

1. Regular Income: Must have a reliable source of income to make repayment plan installments.
2. Debt Limits: Secured debts cannot exceed $1,395,875, and unsecured debts must be under $465,275.
3. Tax Compliance: Must have filed all required tax returns for the past four years.

 

How Does Chapter 13 Bankruptcy Work in Georgia?

Chapter 13 bankruptcy in Georgia involves creating a court-approved repayment plan to manage debts. Here’s an overview of the process:

1. File a Petition: Submit your bankruptcy petition and repayment plan to the court.
2. Automatic Stay: Stops collection actions, such as foreclosure or wage garnishment.
3. Repayment Plan: Pay creditors over 3 to 5 years based on disposable income.
4. Discharge: Remaining eligible debts are discharged after plan completion.

 

 

 

What Are the Benefits of Chapter 13 Bankruptcy?

Chapter 13 bankruptcy offers several advantages, including:

• Asset Protection: Retain your home, car, and other valuable assets.
• Debt Reorganization: Consolidate debts into a single, manageable payment.
• Foreclosure Prevention: Halt foreclosure proceedings and allow time to catch up on mortgage payments.
• Credit Recovery: Gradually rebuild credit through consistent repayment.

 

What Debts Are Covered Under Chapter 13 Bankruptcy?

Chapter 13 bankruptcy in Georgia allows you to include various types of debts in your repayment plan. This structured approach helps you manage your financial obligations while protecting essential assets like your home or car. Below is a breakdown of the common debt types and how they are handled under Chapter 13 bankruptcy:

Debt Type	Covered in Chapter 13
Mortgage Arrears	Included in repayment plan to stop foreclosure
Credit Card Debt	Paid off partially or fully over the repayment period
Medical Bills	Dischargeable if not repaid by the end of the plan
Tax Debts	Certain federal and state taxes may be included
Child Support/Alimony	Cannot be discharged but must remain current

Each debt category has specific rules, and your repayment plan will prioritize certain obligations, such as mortgage arrears and child support, to ensure compliance with bankruptcy laws. Understanding these nuances can help you better prepare for the Chapter 13 process and its long-term benefits.

 

 

How Do You Create a Chapter 13 Repayment Plan in Georgia?

To create a Chapter 13 repayment plan, calculate your disposable income and prioritize debts. Follow these steps:

1. Assess Income: Total all income sources to determine what’s available for payments.
2. List Debts: Categorize secured and unsecured debts to prioritize repayment.
3. Include Expenses: Document allowable expenses like housing, utilities, and food.
4. Submit Plan: File your proposed repayment plan with the bankruptcy court.

 

How Long Does Chapter 13 Bankruptcy Last?

Chapter 13 bankruptcy typically lasts 3 to 5 years. The exact duration depends on your income level and the structure of your repayment plan.

 

What Happens If You Miss a Payment in Chapter 13 Bankruptcy?

Missing payments in Chapter 13 bankruptcy can lead to case dismissal or loss of asset protection. To avoid these consequences:

• Notify Your Attorney: Communicate financial issues immediately.
• Modify Your Plan: Request a plan modification to adjust payments.
• Catch Up Quickly: Pay overdue installments as soon as possible.

 

How Does Chapter 13 Bankruptcy Affect Your Credit?

Chapter 13 bankruptcy stays on your credit report for 7 years. While it temporarily lowers your credit score, consistent repayment can help you rebuild credit over time.

 

 

Can You Keep Your Home While Filing for Chapter 13 in Georgia?

Yes, you can keep your home while filing for Chapter 13 in Georgia. Chapter 13 bankruptcy is designed to stop foreclosure and allow you to repay past-due mortgage payments through a court-approved repayment plan. This approach ensures you can stay in your home while managing your financial obligations.

Key factors to consider:

• Automatic Stay: Filing triggers an automatic stay, halting foreclosure proceedings.
• Repayment Plan: You can include past-due payments in your Chapter 13 plan and repay them over three to five years.
• Future Payments: You must continue making regular mortgage payments while adhering to the repayment plan.

This debt relief option helps protect your home and create a sustainable financial recovery plan.

 

How Does Chapter 13 Bankruptcy Impact Your Credit in Georgia?

Chapter 13 bankruptcy has both short- and long-term effects on your credit score, but it provides a path toward financial recovery. While filing will impact your credit, it can also help you rebuild it over time by addressing delinquent accounts and reducing your debt burden.

Key points to know:

• Credit Score Drop: Expect an initial decrease in your credit score after filing.
• Credit Reporting: Chapter 13 remains on your credit report for up to seven years.
• Improved Financial Health: Successfully completing the repayment plan demonstrates financial responsibility, which can improve your credit over time.

Tips for recovery:

• Create a budget to manage finances effectively post-bankruptcy.
• Use secured credit cards to rebuild credit responsibly.
• Pay all bills on time to show financial stability to lenders.

Chapter 13 can be a step toward improving your financial future, despite its temporary impact on your credit score.

 

Can You Discharge Debts Early in Chapter 13 Bankruptcy?

Yes, you can request a hardship discharge if unforeseen circumstances prevent plan completion. Common reasons include:

• Severe illness or disability
• Job loss or income reduction
• Unforeseeable financial emergencies

 

What Happens After Completing Chapter 13 Bankruptcy?

After completing Chapter 13 bankruptcy, remaining eligible debts are discharged. This marks the end of your repayment obligations, allowing you to rebuild your financial future.

 

Contact Morgan & Morgan for Expert Bankruptcy Assistance

Filing Chapter 13 bankruptcy in Georgia is a critical step toward financial stability, and Morgan & Morgan is here to guide you through every phase of the process. With years of experience helping Georgia residents, we’ll ensure your rights are protected and your assets are safeguarded.

Call us today at 706-548-7070 to schedule a free no-obligation consultation. Let us help you regain control of your finances and achieve lasting relief from debt.

 

Related Content:

• What Are the Pros and Cons of Declaring Bankruptcy in Georgia?
• Do You Have to Go to Court for Bankruptcies in Georgia?
• How Much Does a Bankruptcy Lawyer Cost in Georgia?
• How Do I File Chapter 7 with No Money in Georgia?

 

FAQs About Filing Chapter 13 Bankruptcy in Georgia

What Happens to Your Car in Chapter 13 Bankruptcy?

Your car loan is included in your repayment plan, and you can avoid repossession by staying current on payments. In some cases, you may reduce the loan balance to the car’s current value.

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Can You Modify a Chapter 13 Repayment Plan?

Yes, you can request a modification if your financial situation changes. Common reasons include job loss, income reduction, or unexpected medical expenses.

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Is Chapter 13 Better Than Chapter 7 in Georgia?

Chapter 13 is better for those with steady income who want to keep assets, while Chapter 7 provides faster debt relief but may require asset liquidation.

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How Much Does Chapter 13 Bankruptcy Cost in Georgia?

Filing Chapter 13 costs $313 for the court filing fee, plus attorney fees, which typically range from $3,000 to $5,000. Payment plans may be available for attorney fees.

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What Debts Cannot Be Discharged in Chapter 13 Bankruptcy?

Debts like child support, alimony, and most tax obligations cannot be discharged. These must be paid in full during the repayment plan.

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What Happens If You Default on Your Chapter 13 Plan?

Defaulting may lead to case dismissal, loss of asset protection, or resumption of creditor actions. Notify your attorney immediately to discuss options like plan modification.

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Can You File Chapter 13 Bankruptcy More Than Once?

Yes, but you must wait two years from the discharge of a previous Chapter 13 case. For Chapter 7, the waiting period is four years.