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Chapter 13 Bankruptcy in Georgia generally applies to those meeting the majority of the following criteria:

• You own a home and are behind on your mortgage
• Your debts may be re-negotiated for better terms
• Past Due balances are paid off over 3 – 5 years
• You keep your home, car, etc. as long as you continue your regular payments

Background

A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” (1) If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. §1322(d). During this time the law forbids creditors from starting or continuing collection efforts.

This chapter discusses six aspects of a chapter 13 proceeding: the advantages of choosing chapter 13, the chapter 13 eligibility requirements, how a chapter 13 proceeding works, what may be included in chapter 13 repayment plan and how it is confirmed, making the plan work, and the special chapter 13 discharge.

The attorneys at the Sandberg Law Firm specialize only in bankruptcy law, giving you access to the most qualified bankruptcy related legal assistance available in Atlanta. The Bankruptcy Reform Act of 2005 made sweeping changes to filing requirements and eligibility standards, making it harder to qualify and more difficult to file. Now, more than ever before, finding an attorney that knows all the ins and outs of the bankruptcy system is vital to winning your case. You should only rely on the advice of a quality bankruptcy attorney, like those you’ll find at the Sandberg Law Firm.

Advantages of Chapter 13

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.

The attorneys at the Sandberg Law Firm specialize only in bankruptcy law,

giving you access to the most qualified bankruptcy related legal assistance

available in Atlanta. The Bankruptcy Reform Act of 2005 made sweeping changes to

filing requirements and eligibility standards, making it harder to qualify and

more difficult to file.<div>

Now, more than ever before, finding an attorney that knows all the ins and

outs of the bankruptcy system is vital to winning your case. You should only

rely on the advice of a quality bankruptcy attorney, like those you’ll find

at the Sandberg Law Firm.</div>

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<font color=”#000000″ face=”Arial”><strong>Chapter 13<br> </strong></font></div>

<div><font color=”#000000″ face=”Arial”>• You own a home and are behind on your mortgage</font></div>

<div><font color=”#000000″ face=”Arial”>• Your debts may be re-negotiated for better terms</font></div>

<div><font color=”#000000″ face=”Arial”>• Past Due balances are paid off over 3 – 5 years</font></div>

<div><font color=”#000000″ face=”Arial”>• You keep your home, car, etc. as long as you continue your

regular payments</font><p><p><p><b>

<font size=”2″ color=#000000 face=”Arial”>Background

</font></b></p>

<p><font size=”2″ color=”black”><font face=”Arial”><br>A chapter 13 bankruptcy is also called a wage earner's plan. It enables

individuals with regular income to develop a plan to repay all or part of their

debts. Under this chapter, debtors propose a repayment plan to make installments

to creditors over three to five years. If the debtor's current monthly income is

less than the applicable state median, the plan will be for three years unless

the court approves a longer period "for cause." (1) If the debtor's current

monthly income is greater than the applicable state median, the plan generally

must be for five years. In no case may a plan provide for payments over a period

longer than five years. 11 U.S.C. §1322(d). During this time the law forbids

creditors from starting or continuing collection efforts.</font></p>

<p><font color=”#000000″ face=”Arial” size=”2″><br>This chapter discusses six aspects of a chapter 13 proceeding: the advantages of

choosing chapter 13, the chapter 13 eligibility requirements, how a chapter 13

proceeding works, what may be included in chapter 13 repayment plan and how it

is confirmed, making the plan work, and the special chapter 13 discharge. </span>

</font></font></p>

<span style=”font-size:

10.0pt;font-family:"Arial"”><br>Advantages of Chapter 13<br> </span></strong></font></p>

<span style=”font-size:10.0pt;font-family:"Arial"”>Chapter 13 offers individuals a number of advantages over liquidation under

chapter 7. Perhaps most significantly, chapter 13 offers individuals an

opportunity to save their homes from foreclosure. By filing under this chapter,

individuals can stop foreclosure proceedings and may cure delinquent mortgage

payments over time. Nevertheless, they must still make all mortgage payments

that come due during the chapter 13 plan on time. Another advantage of chapter

13 is that it allows individuals to reschedule secured debts (other than a

mortgage for their primary residence) and extend them over the life of the

chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a

special provision that protects third parties who are liable with the debtor on

"consumer debts." This provision may protect co-signers. Finally, chapter 13

acts like a consolidation loan under which the individual makes the plan

payments to a chapter 13 trustee who then distributes payments to creditors.

Individuals will have no direct contact with creditors while under chapter 13

protection.</span></font></p>

<font color=”#000000″ size=”2″>For more information about

bankruptcy, click on </font><strong>

<font color=”#000000″>Bankruptcy Basics</font></span></a></span></strong></font></div>

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Chatper 13

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