The Basics of Chapter 13 Bankruptcy
Atlanta Bankruptcy Lawyer
Have you found yourself trapped by debt? Are you confused as to how you can know if bankruptcy is the right option for you? At the Stadler Law Group, LLC, we are committed to helping people who are facing financial difficulties. We understand that bankruptcy is not the right choice for everyone, but we also understand that many people shy away from filing for bankruptcy because they believe the common misconceptions regarding bankruptcy. Chapter 13 bankruptcy is a type of bankruptcy which is similar to debt consolidation. Rather than selling your assets in order to discharges your debts, Chapter 13 reorganizes your debts in order to pay them off over a period of time.
Chapter 13 bankruptcy is also known as wage earner's bankruptcy. If it is determined that your income meets the criteria, a three to five year repayment plan could be put into place. Filing for Chapter 13 bankruptcy could be beneficial for several different reasons. For example, if you are being threatened with foreclosure, Chapter 13 bankruptcy will cause the foreclosure proceedings to stop. Another beneficial result of Chapter 13 bankruptcy is that it could lower your repayments.
Determining Chapter 13 Eligibility
How can you determine whether or not you are eligible to file for Chapter 13 bankruptcy? According to the U.S. Bankruptcy Court, any individual (not business) is able to file for Chapter 13 bankruptcy. The amount of unsecured debt must not be higher than $360,475 and the amount of secured debt must not be more than $1,081,400. As these amounts can change over time, it is important that you discuss your case with a bankruptcy attorney. Another factor which will determine eligibility is whether you have already filed for bankruptcy within a 180 day period and failed to adhere to the bankruptcy proceedings.
If it is determined that you are eligible for Chapter 13 bankruptcy, the first step will be to file the petition with your bankruptcy court. The court will need to see a list of your assets, income, and more. Once a trustee has been chosen in your case, they will have to be given a copy of your tax return. There will be a filing fee of $235 with the court as well as an administrative fee of $46. Once your case has been filed a hearing will be held regarding your case and your creditors will have the option of attending. If you repayment plan is approved by the court, you will be able to start making payments.
Chapter 13 vs. Chapter 7 Bankruptcy
If you are considering filing for bankruptcy, one question you will have to consider is whether to choose Chapter 13 bankruptcy or Chapter 7 bankruptcy. Chapter 7 bankruptcy is also known as liquidation bankruptcy because many of your assets will be sold in order to repay some of your loans. Not everyone is eligible for Chapter 7 bankruptcy and not everyone wants to liquidize their assets. In these cases, Chapter 13 could be a better option.
If you have more questions about Chapter 13 bankruptcy, please do not hesitate to get in touch with an Atlanta bankruptcy lawyer from our firm. We could examine your particular case and seek to determine what the best path for you is. You can contact us at any time to schedule a free consultation or you can look through our website to find more information. Who you choose to handle your case could make a huge difference in how successfully your case is resolved. Contact a chapter 13 bankruptcy attorney from our office today to get started!