If you feel you are a candidate for Chapter 13 bankruptcy protection but the legal process feels too overwhelming, contact Cherney Law today for a free consultation.
When most people think of bankruptcy, they think of Chapter 7 bankruptcy. You lose most of your possessions, and the remainder of your debts are no longer owed. Many individuals experiencing financial hardship either have too much property or feel a moral obligation to avoid filing for Chapter 7. If this describes you, you may still benefit from Chapter 13 bankruptcy protection. Let an experienced Atlanta bankruptcy lawyer at the Cherney Bankruptcy Law Firm handle your case.
If you have significant equity in your house and do not want to risk foreclosure, Chapter 13 may be for you. Likewise, Chapter 13 is your best option if you do not want your car to be repossessed. Chapter 13 bankruptcy also reduces the liabilities faced by any co-signers on your debts, so it protects them more than filing Chapter 7 in Atlanta.
What is Chapter 13 bankruptcy? Chapter 13 bankruptcy does not wipe all of your debts out like Chapter 7 bankruptcy does. Instead, it mandates a repayment plan that allows you to pay all of your different debts off in a 3-5 year period. Chapter 13 is frequently called Wage Earner bankruptcy because you still have a monthly income while going through the process. You get to keep more of your assets than you do in a Chapter 7 bankruptcy as long as you make the payments required by your repayment plan. The repayment process cannot last longer than five years under any circumstances in a Chapter 13 bankruptcy.
In order to qualify, you must have a monthly income and an amount of debt that fits within Chapter 13 of the Atlanta bankruptcy code. If your income is higher than the median income for a Georgia family of the same size, you must accept a five year repayment plan. The exact amount of debt permissible is tied to the consumer price index, so it is constantly in flux. There are also differing guidelines concerning secured (your creditor has collateral) and unsecured (they do not) debt.
Some debts are considered priority debts that must be paid off by your repayment plan before other ones are addressed. For example, past due child support and tax bills must be taken care of before you can apply any money to other obligations. Otherwise, you can pick the order your debts are paid off in.
If you feel you are a candidate for Chapter 13 bankruptcy protection but the legal process feels too overwhelming, contact Cherney Bankruptcy Law Firm today for a free consultation. Matthew Cherney is an experienced attorney with a thorough understanding of Atlanta bankruptcy law. He will be able to help you determine whether you qualify for Chapter 13 bankruptcy and whether Chapter 7 bankruptcy would be a better option for you. If it is, our law firm will be able to help you with that as well. If Chapter 13 is the right fit for you, we will help you devise a repayment plan that will place you back on the road to financial health while meeting all legal obligations. The quality of the repayment plan you submit is the biggest contributing factor to whether you are granted a Chapter 13 bankruptcy.
If you have an income but still struggle to meet all of your monthly payments, contact us to find out more about Chapter 13 bankruptcy protection today!