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Georgia Chapter 13
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.
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Chapter 13
• 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.
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.
For more information about
bankruptcy, click on
Bankruptcy Basics
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