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Chapter 13 FAQ

Some answers to frequently asked questions about Chapter 13 bankruptcy

Even individuals who earn a regular paycheck can face financial challenges. Whether you had to turn to credit to pay the extensive costs of a medical emergency, or you cannot continue to stretch your income to cover the mortgage for an underwater home, filing for Chapter 13 bankruptcy may resolve your issues.

If you have more questions than answers, our Georgia bankruptcy lawyers have over seven decades of combined experience guiding clients through the options available for their unique circumstances. Refer to our Chapter 13 bankruptcy overview page for more information on how we can help with the filing process. Alternatively, click a question below for answers to some of the most common questions we hear from our clients.

  • Why would I choose Chapter 13 over Chapter 7?
  • How long does a Chapter 13 bankruptcy remain on my credit report?
  • How long is a Chapter 13 repayment plan?
  • Do I need to meet any eligibility requirements to file for Chapter 13 bankruptcy?
  • What is a Chapter 13 plan?
  • If I cannot complete the Chapter 13 plan, can I still obtain a discharge?
  • What are the disadvantages of filing for Chapter 13?
  • Can a business file for Chapter 13?

Why would I choose Chapter 13 over Chapter 7?

Chapter 7 may not be an option because you earn too much income. It may not be the best option because you have debt that cannot be eliminated, or you would lose property.

 

How long does a Chapter 13 bankruptcy remain on my credit report?

A Chapter 13 bankruptcy remains on your credit report for seven to ten years, depending on the credit agency.

 

How long is a Chapter 13 repayment plan?

Chapter 13 repayment plans usually take three to five years to complete. This depends on the length of time negotiated to repay your debt.

 

Do I need to meet any eligibility requirements to file for Chapter 13 bankruptcy?

According to the United States Courts, in addition to meeting certain regulatory requirements, you can file for Chapter 13 bankruptcy, as long your debt does not exceed specific dollar amounts. Although the amounts can periodically change, the current maximum amount of unsecured debt is $360,575, and the limit for secured debt is $1,081,400. Our experienced Chapter 13 bankruptcy lawyers can determine your qualification for Chapter 13 or other debt relief options.

 

What is a Chapter 13 plan?

Within 14 days of filing a Chapter 13 bankruptcy petition, the court requires you to submit a plan that provides for the regularly scheduled fixed dollar payment that you intend to pay to the trustee for your case for distribution to creditors as specified by the terms of the plan. Even if the plan is still under court review, you must begin making payments within 30 days of filing the bankruptcy case.

 

If I cannot complete the Chapter 13 plan, can I still obtain a discharge?

When circumstances arise beyond your control, such as a debilitating illness or injury that prevents you from working, you may ask the court to grant a hardship discharge. However, limits exist to hardship discharges — and they do not apply to debt that does not qualify for discharge in Chapter 7 bankruptcy.

 

What are the disadvantages of filing for Chapter 13?

One of the major disadvantages to filing for Chapter 13 is that you are under the supervision of the court for between 36 and 60 months. This means that you will not receive your discharge until your repayment plan is completed. In addition, if you fail to meet the requirements of your plan, your Chapter 13 case may be dismissed. For more information on the different types of bankruptcy, speak to a skilled lawyer at Jeff Field & Associates today about your bankruptcy case in Gainesville, Lawrenceville or the surrounding areas.

 

Can a business file for Chapter 13?

No. However, if you are a sole proprietor you can file personal bankruptcy.


Contact our Georgia Chapter 13 bankruptcy attorneys for answers to your unique questions

Call Jeff Field & Associates at 404-499-2700 or contact the firm online to schedule an initial consultation. From offices conveniently located in Scottdale, Athens, Douglasville, Lawrenceville, Marietta and Gainesville, Jeff Field & Associates serves clients throughout the Atlanta metropolitan area.

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