Georgia Chapter 13 Bankruptcy Lawyer
Helping You Rebuild Financial Freedom
Last Updated:
Chapter 13 bankruptcy allows individuals in Georgia to restructure overwhelming debt into a manageable repayment plan while keeping their home, car, and other assets. Cherney Law Firm, LLC serves individuals and families across Marietta and Metro Atlanta who want to stop foreclosure, catch up on missed payments, and regain financial stability.
How a Chapter 13 Bankruptcy Lawyer in Georgia Can Help You
Chapter 13 bankruptcy is designed for individuals with regular income who are struggling to meet their debt obligations. It allows eligible filers to repay debts over three to five years under a court-approved plan, rather than liquidating assets or surrendering property.
Some individuals facing severe debt may be unable to repay even a portion of what they owe, whether because they have lost their jobs or simply carry more debt than their income can support. In that situation, they may be able to file for bankruptcy under Chapter 7 of the United States Code.
Many others in serious financial difficulty are still earning each month enough to make payments, provided those payments remain affordable. These individuals can benefit from speaking with a bankruptcy lawyer to understand how filing for Chapter 13 bankruptcy could provide meaningful relief from their debts.
Chapter 13 takes its name from Chapter 13 of USC Title 11, the federal law governing bankruptcy in the United States. Before filing under this chapter, you would typically need to complete a means test to determine whether your income and finances make you eligible for this type of relief.
If you qualify under Chapter 13, a structured repayment plan is generally set up that allows you to make affordable payments on your remaining debts over a period of three to five years. Once you complete the plan, your remaining eligible debt may be discharged.
The plan typically includes detailed information covering:
When your payments are due, and how much each payment should be
Which creditors are paid and on what schedule
Any property you hold and other relevant aspects of your financial situation
Bankruptcy trustees, as well as creditors, have the right to raise objections to the proposed plan in bankruptcy court. Ultimately, the court reviews all objections and determines the final terms for repaying your debts. Working with a knowledgeable Georgia Chapter 13 bankruptcy lawyer can help you navigate this process and put together a plan that reflects your actual financial situation.
Putting Forth Your "Best Effort"
Once a plan is in effect, you are generally expected to make your "best effort" to repay everything and complete the plan. This means that your disposable income, what remains after allowed living expenses, is typically directed toward repaying your debts according to the terms set in your repayment plan. The court uses a standard income calculation form to help determine how much you should pay each month to unsecured creditors based on your income and household size.
Your annual wage level may significantly affect the required monthly payment. If your income changes during the repayment period, it may be possible to modify your plan to reflect your new financial situation. At Cherney Law Firm, we can help you understand what "best effort" means for your specific circumstances and work toward a plan that is realistic and manageable.
Benefits of Filing Chapter 13 Bankruptcy
Chapter 13 bankruptcy provides powerful legal tools that can halt devastating financial actions against you. When your case is filed, the automatic stay generally stops foreclosure proceedings, giving you breathing room to catch up on mortgage payments through your repayment plan.
Vehicle repossession typically ceases upon filing as well. In many cases, you may be able to recover a recently repossessed car and restructure your auto loan with more manageable terms over a three-to five-year plan period.
Wage garnishment also stops when your Chapter 13 petition is filed with the court, allowing you to keep your full paycheck while working through the structured repayment process.
Beyond these protections, the automatic stay generally halts:
Utility disconnections
Creditor harassment and collection calls
Collection lawsuits
These comprehensive safeguards create the space you need to reorganize your financial life without constant pressure from creditors, giving you a realistic path forward.
Secured Claims
Debts secured by collateral are generally considered secured claims. This means that if you do not pay a creditor, they may have the right to sell your collateral to cover what you owe.
Secured claims include:
Mortgage payments
Car payments
Property taxes
In most cases, your Chapter 13 repayment plan covers the full amount of the debt plus any applicable interest. In rare situations, you may be able to pay less than the full balance if your circumstances qualify as a "cramdown." This option is not available to everyone, and whether you qualify depends on the specifics of your case.
Unsecured Priority Claims
Unsecured priority claims are debts that carry no collateral but rank higher than general unsecured claims under the Bankruptcy Code. This category typically includes tax debt, past-due alimony or child support, and other domestic support obligations. In most cases, these debts are required to be paid in full through a Chapter 13 proceeding.
General unsecured claims are debts that have no collateral and no elevated priority. They generally cover everyday consumer expenses, including:
Credit card bills
Personal loans
Utilities
Medical expenses
Under a Chapter 13 filing, most people typically pay back only a percentage of these debts rather than the full amount. The exact portion you may owe depends on your income, expenses, and the specifics of your repayment plan. Before making any assumptions about which debts you will need to repay, it is important to speak with a qualified bankruptcy attorney who can review your situation and explain what to expect.
Life After Bankruptcy
Completing Chapter 13 may bring meaningful financial benefits and improved credit opportunities. Many filers see credit scores improve in the years following discharge, which can open doors to traditional lending products, though results vary based on your individual circumstances.
Mortgage qualification may become possible within a few years after discharge, depending on the loan program and your down payment. FHA loans often offer one of the fastest paths back to homeownership for former debtors who have responsibly rebuilt their credit.
Employment opportunities may also improve as financial stress decreases and garnishment orders are removed from payroll systems. Many employers view a completed Chapter 13 case favorably, recognizing the debtor's commitment to repaying obligations rather than walking away from them.
Building emergency savings becomes important once bankruptcy protection ends. Budget discipline learned during Chapter 13 typically continues post-discharge, helping you maintain healthier financial habits and avoid repeating past patterns. These habits, combined with a structured repayment history, can form a solid foundation for lasting stability.
Qualified Legal Assistance from a Chapter 13 Bankruptcy Attorney
One of the most important decisions you can make when facing bankruptcy is hiring a knowledgeable Marietta and Cobb County bankruptcy lawyer to counsel and guide you through the process. Without skilled legal guidance, you may miss key benefits or steps that could significantly affect your outcome.
At Cherney Law Firm, we bring over 15 years of experience and a substantial number of cases filed to every client we serve. We understand how overwhelming financial hardship can feel, and we are here to help you evaluate your options and pursue the relief that may be available to you.
Contact us today, fill out a free case evaluation, or call our office to schedule a free consultation.
Frequently Asked Questions
Chapter 13 generally helps you keep secured property, such as your home and vehicle, by allowing you to catch up on missed payments through an affordable monthly repayment plan over the term of the plan.