Chapter 13 Bankruptcy
What is Chapter 13 Bankruptcy?
Total personal bankruptcy filings in the United States reached 1.53 million in 2010. This figure means that just more than 5 out of every 1,000 Americans filed in the year. About 3 of every 10 personal bankruptcies filed in 2010 were Chapter 13 bankruptcy filings, in which a court-supervised repayment plan is created; the remainder were Chapter 7 bankruptcy filings, under which debts are discharged.
In 2010, Georgia was number 2 in the nation for bankruptcies. The primary reason for the large number of bankruptcy filings in Georgia was sub-prime mortgages, where people could no longer afford to pay on homes they likely should not have ever bought. This forced many to start filing bankruptcy for relief. Because of this, the economy was hurt, and there have been millions of bankruptcies in the past several years.
The majority of people who file for bankruptcy have lost a job, and almost half have had major health problems. Though job loss is a key reason in many cases, the foremost reason in the Atlanta metro area, as well as the state as a whole, is a serious health problem which leads to significant medical bills.
Chapter 13 bankruptcy in Georgia is a very different process than filing for Chapter 7 bankruptcy. The Chapter 13 bankruptcy process involves organizing your debt and coming up with an agreement to pay off that debt through the state court. There are advantages to Chapter 13 bankruptcy, like the fact that you will not have to give up property to settle any debts. The main disadvantage that most people see is that you will have to pay off your debts over several years instead of simply having them removed from your record through the bankruptcy court.
Also known as reorganization bankruptcy, Chapter 13 bankruptcy allows you to create a payment plan based on your income rather than your assets. Your various debts are consolidated into a single payment that you make to a Chapter 13 bankruptcy trustee who then disburses payments to your creditors according to your court-approved and legally binding plan.
Chapter 13 bankruptcies may be the right option for people who have non-exempt property they would like to keep and have a reliable income that allows them to afford day-to-day expenses while making payments on debt.
Chapter 13 bankruptcy may also help you avoid auto repossession and home foreclosure. An experienced bankruptcy attorney at Elder Law Firm can help assess your individual situation and determine what would be best for you and your family
Total personal bankruptcy filings in the United States reached 1.53 million in 2010. This figure means that just more than 5 out of every 1,000 Americans filed in the year. About 3 of every 10 personal bankruptcies filed in 2010 were Chapter 13 bankruptcy filings, in which a court-supervised repayment plan is created; the remainder were Chapter 7 bankruptcy filings, under which debts are discharged.
In 2010, Georgia was number 2 in the nation for bankruptcies. The primary reason for the large number of bankruptcy filings in Georgia was sub-prime mortgages, where people could no longer afford to pay on homes they likely should not have ever bought. This forced many to start filing bankruptcy for relief. Because of this, the economy was hurt, and there have been millions of bankruptcies in the past several years.
The majority of people who file for bankruptcy have lost a job, and almost half have had major health problems. Though job loss is a key reason in many cases, the foremost reason in the Atlanta metro area, as well as the state as a whole, is a serious health problem which leads to significant medical bills.
Chapter 13 bankruptcy in Georgia is a very different process than filing for Chapter 7 bankruptcy. The Chapter 13 bankruptcy process involves organizing your debt and coming up with an agreement to pay off that debt through the state court. There are advantages to Chapter 13 bankruptcy, like the fact that you will not have to give up property to settle any debts. The main disadvantage that most people see is that you will have to pay off your debts over several years instead of simply having them removed from your record through the bankruptcy court.
Also known as reorganization bankruptcy, Chapter 13 bankruptcy allows you to create a payment plan based on your income rather than your assets. Your various debts are consolidated into a single payment that you make to a Chapter 13 bankruptcy trustee who then disburses payments to your creditors according to your court-approved and legally binding plan.
Chapter 13 bankruptcies may be the right option for people who have non-exempt property they would like to keep and have a reliable income that allows them to afford day-to-day expenses while making payments on debt.
Chapter 13 bankruptcy may also help you avoid auto repossession and home foreclosure. An experienced bankruptcy attorney at Elder Law Firm can help assess your individual situation and determine what would be best for you and your family
Elder Law Firm Provides Legal Services to l Marietta l Acworth l Woodstock l Canton l Kennesaw l Georgia
