Normally, a repayment plan bankruptcy in Georgia lasts three or five years. Typically, people want as much time as possible to pay off mortgage arrearage and other delinquent secured debts. However, bankruptcy is not one size fits all and some people want to know, How do I get out of Chapter 13 earlt? In two very different situations, it’s possible to get out of Chapter 13 early. These situations are examined below.

These early exit options are far from automatic. In fact, in most cases, an Athens bankruptcy lawyer must strongly advocate for debtors in these situations. Without such advocacy, it’s almost impossible to get out of Chapter 13 early. So, do not attempt these moves on your own. There is a good chance that you will simply make things worse.

Bankruptcy in Athens, GA Does Have Benefits

Both Chapter 7 and Chapter 13 have roughly the same benefits. One of these benefits is Section 362 of the Bankruptcy Code. The Automatic Stay immediately halts creditor adverse actions like:

• Wage garnishment,
• Foreclosure,
• Creditor harassment,
• Repossession, and
• Eviction.

It is very difficult for creditors to bypass the Automatic Stay, especially since your Athens bankruptcy lawyer has an opportunity to stop them. Even if they get around the Stay, most of your assets are exempt, such as:

• House,
• Motor vehicle,
• Retirement account,
• Government benefits, and
• Personal property.

Outside bankruptcy, creditors can almost seize the assets at will. Inside bankruptcy, they are almost untouchable.

Best of all, Chapter 13 gives distressed debtors a fresh financial start. At the end of the protected repayment period, debtors have a zero past due balance on their secured assets. Additionally, they have no more unsecured debts to worry about.

Hardship Discharge in Athens, GA

The monthly debt consolidation payment is often the key to a Chapter 13 bankruptcy. Making this payment keeps creditors at bay and also lets debtors erase delinquency on their own terms.

The amount of this payment varies, but in many cases, it’s roughly the size of a rent or mortgage payment. A financial crisis, such as job loss or serious illness, usually prompts bankruptcy filings. Unlike lightning, these crises can strike more than once. In fact, they almost always strike more than once.

If the debtor is unable to continue making payments, a hardship discharge might be an option. Judges normally grant hardship discharges if the:

• Plan payment cannot be modified (e. if the debtor paid less each month, the amount would not be high enough to pay creditors),
• Debtor’s financial situation will probably not improve,
• Changed circumstances were entirely beyond the debtor’s control, and
• Creditors have received as much as they would have received in a Chapter 7.

The second and third prongs are the most difficult ones for an Athens bankruptcy lawyer to establish in court. Generally, sick people get better, divorced people remarry, and unemployed people find new jobs. Plus, these unfortunate events are not always entirely beyond the debtor’s control. Smokers often get lung cancer, cheating spouses usually get divorced, and workers who give less than 100 percent normally get fired.

If a hardship discharge is not an option, an Athens bankruptcy lawyer can help debtors convert from Chapter 13 to Chapter 7. This conversion means no more debt consolidation payments and a faster fresh start.

What an Early Payoff Discharge is in Georgia

Sometimes, instead of going through another financial setback, debtors are financially fortunate. Their business takes off, they get promoted, or they inherit money. If the good fortune allows a debtor to pay all allowed claims, the judge might grant an immediate discharge, no matter how much time has elapsed.

“Allowed claims” in a Chapter 13 usually include administrative fees, like the trustee’s fee, all secured debt delinquency, and all priority unsecured debt delinquency, such as past due child support.

General unsecured creditors, such as credit card companies, often object to these early discharge motions. These objections normally ask the judge to increase the monthly debt consolidation payment, so they get more money.

An Athens bankruptcy lawyer often negotiates a solution in these situations. Frequently, the if the debtor agrees to partially reaffirm the general unsecured debt, the creditor agrees to drop the objection. Creditors are even more agreeable if the debtor pays some of this money upfront.

Speak with Experienced Athens Bankruptcy Lawyers in Georgia

There are basically two ways to get out of Chapter 13 early. For a free consultation with an experienced Athens bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. Convenient payment plans are available.

Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.