Chapter 13 is an alternative to chapter 7, and is designed for people with a normal income, who can pay off their debts, but need time to do so. In chapter 13, you repay your creditors in full or partially over a period of three to five years.
We offer one of the lowest Chapter 13 filing fees in Georgia starting at $306. Come in for your free consultation to see if you qualify.
- The advantage of a chapter 13 bankruptcy over a chapter 7 bankruptcy is that you keep your property while you repay your debts
- A low or no interest replayment plan to help you pay back your creditors
- You can apply for chapter 13 bankruptcy if your debts are less than $269,750, your secured debts are less than $807,750, and you have not had a bankruptcy petition dismissed in the past 180 days
- In a Chapter 13 you pay all of your disposable income to the Chapter 13 Trustee. Disposable income is the money left over after day to day living expenses, such as house payment, utilities, food, etc are paid.
- Instead of using your disposable income to pay for their debts (car payment, etc) you would pay the money to the Chapter 13 Trustee. The Chapter 13 Trustee would then pay your debts for you.
- The Trustee pays the secured creditors first. Secured creditors are the ones who have collateral, such as a car. The secured creditors must be paid 100% of the value of their collateral.
The unsecured creditors are ones who do not have collateral, such as credit cards, or medical bills. Unsecured creditors can be paid any amount between 100% and 1% of their debt.