For those looking to get a handle on overwhelming debt, you may already know that filing for personal bankruptcy could be a resolution. However, there are multiple options available, and one may be a better fit than others for your situation. Chapter 13 bankruptcy is an alternative that involves a debt repayment plan instead of complete discharge of all debts. If you do not qualify under other bankruptcy rules and want to protect assets, Chapter 13 might be a wise option.

You might expect that bankruptcy is a matter of filling out forms and submitting financial documents, tasks you could handle yourself. However, the Chapter 13 process is complicated, and mistakes could affect your rights. Retaining legal counsel is essential and beneficial, so you will need to invest in your case to look forward to a brighter future. To better understand where your money will go, you can also read on for some information on how much an Athens, GA Chapter 13 bankruptcy attorney costs.

Chapter 13 Legal Costs in Athens

Some bankruptcy lawyers charge a flat fee for cases under Chapter 13 of the US Bankruptcy Code, usually after they carefully assess all circumstances. Experienced attorneys know the proceedings in great detail, enabling them to gauge the time and effort to complete the case. A flat fee may be suitable in these cases.

However, because of the laws and requirements for the debt repayment plan, some bankruptcy lawyers charge an hourly fee for Chapter 13. Your attorney will itemize all time entries for document preparation, research, court appearances, consultations, and other activities related to your case. You may need to deposit a retainer to get the bankruptcy process started.

All details regarding billing will be provided to you in advance, and keep in mind that you are responsible for expenses. There are also filing fees of $338 for a Chapter 7 case, plus costs of credit counseling.

How Chapter 13 Bankruptcy Works in Athens

Your attorney will tackle a wide range of tasks and strategies for a Chapter 13 case, starting with initial consultations about your options. It is important to know that you are making the right choice, as opposed to Chapter 7 or some other form of debt relief. There are also preliminary requirements for filing, including the mandatory credit counseling course that you must complete within 180 days beforehand.

Prior to starting the case, you will need to prepare by gathering all documents that will be necessary to complete the bankruptcy petition. Make sure to include all paperwork regarding real property, personal assets, debts, monthly income and expenses, and financial statements. Some of this information will be submitted with your petition, and these details are also crucial for developing your debt repayment plan. Chapter 13 requires you to pay creditors, but the amount will be much less than the total you owe.

A Chapter 13 bankruptcy case generally proceeds as follows:

• File Chapter 13 petition, along with schedules.
• Submit the proposed debt repayment plan with the petition or within 14 days thereafter.
• The bankruptcy trustee is appointed to manage the bankruptcy estate.
• Participate in the creditor’s meeting, in which creditors ask questions about your assets, debts, and ability to pay under the debt repayment plan.
• Get confirmation that your debt repayment plan is accepted. If creditors object to the amount or it appears that you cannot complete the plan with your earnings, you may need to make adjustments.
• Comply with the plan over the next three to five years.
• Obtain the discharge order, which eliminates all remaining, eligible debts.

Benefits of Chapter 13 in Athens

The first benefit you will notice about Chapter 13 is the automatic stay that prohibits creditors from collection efforts from the moment you file. You will no longer receive harassing phone calls and threats of a lawsuit. Foreclosure proceedings are paused, and your wages cannot be garnished. Additional benefits include:

• You are no longer burdened by debt, where there is a never-ending cycle of paying the minimum amount but not making a dent in the balance.
• Unlike Chapter 7 liquidation bankruptcy, your assets cannot be sold by the bankruptcy trustee to pay creditors.
• After completing the Chapter 13 debt repayment plan, you eliminate qualifying debts.
• Though a Chapter 13 case stays on your credit report for seven years, you can start rebuilding your credit right away. Personal lines of credit and secured credit cards may be options.

Questions to Ask a Chapter 13 Attorney in Athens

Spending money on a lawyer is a big investment, so you want to do your research. When assessing candidates to represent you, ask a few important questions.

• What percentage of your clients are bankruptcy cases?
• Who will be my contact person at your firm?
• Do I qualify for Chapter 13 bankruptcy?
• Are there other debt-relief options that I should consider?
• What happens to my house with a Chapter 13 debt repayment plan?
• How many times will I have to go to court for a bankruptcy case?

Speak to an Athens, GA Chapter 13 Bankruptcy Lawyer About Options

If you are considering bankruptcy and think Chapter 13 might be a good fit, you should get knowledgeable legal advice to ensure you make the right choice. For more information about eligibility for debt repayment, please contact Morgan & Morgan, Attorneys at Law, P.C. We can set up a free consultation with an Athens, GA bankruptcy attorney who will provide personalized details about your case. After reviewing your circumstances, we will guide you through the Chapter 13 bankruptcy process.

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