Nearly all personal bankruptcies are filed pursuant to Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. In order to file for a Chapter 7 bankruptcy, you’ll need to get past the means test. That test compares your income and debts with those of other people in Georgia, and if your income exceeds the means test, the law will not allow you seek Chapter 7 relief. There’s another alternative though, and that’s through a Chapter 13 repayment plan. Upon filing a Chapter 13 bankruptcy, creditors would be stopped in their tracks in pursuing any collection efforts against you, the same as in a Chapter 7 filing.
Chapter 13 Bankruptcy
Upon filing for a Chapter 13 bankruptcy, you and your Chapter 13 bankruptcy attorney Valdosta would need to formulate a repayment plan that would permit you to pay a majority of your debts over a three to five year period. Pursuant to that repayment plan, you’ll pay an agreed upon sum of money every month to your bankruptcy trustee who would then distribute that money to designated creditors. Assuming that you fully comply with your Chapter 13 repayment plan, nearly all of your remaining unsecured debt would be discharged.
Avoiding Foreclosure Through Chapter 13
One of the pivotal benefits of a Chapter 13 repayment plan is that you still have a chance to get caught up on your mortgage payments and keep your home. The best interests of anybody else who might have co-signed on a loan with you can also be protected.
Whether you’re thinking about a straight Chapter 7 Bankruptcy or a Capter 13 repayment plan in or around Valdosta, you’ll need experienced and effective Chapter 13 bankruptcy attorney Valdosta representing you from the start of your case. Chapter 13 law and forms are complicated. This is nothing that you would want to try on your own.
For more information visit Charles Farrell Jr. LLC.