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What Exactly is Chapter 13 Bankruptcy?

Your legal alternative to liquidation

When most people first consider bankruptcy, they naturally think of Chapter 7 liquidation. After all, Chapter 7 is the section of the bankruptcy code used by most individual consumers, and it requires the petitioner to sell off certain assets before the court discharges the remaining debt. But Chapter 13 bankruptcy requirements don't force you to sell any of your property. On the contrary — it provides effective protection for your most valuable assets. Under Chapter 13, an individual is able to restructure debt, repay a portion and discharge the remainder. In Georgia, Chapter 13 bankruptcy law allows you to keep what you value most: your house and other treasured possessions, while making debt payments over a three-to-five-year period.

Your debts reorganized according to your plan

Filing for Chapter 13 allows you considerable input into the formulation of your repayment plan. You work with your DebtStoppers attorney to propose your own debt reorganization, and submit it to the court for approval. Since the plan is based on your disposable income, you can lower most or all of your non-mortgage debt payments. Those reductions make it easier to make your mortgage payments.

Chapter 13: guaranteed to stop foreclosure and repossession in Georgia!

Chapter 13 is usually a three-year path to debt relief, but as soon as you file, the bankruptcy court orders an automatic stay, which prevents your creditors from taking any collection actions. Instantly you're protected from foreclosure, harassing phone calls, threatening letters, lawsuits and wage garnishments.

So, if there's no contact between you and your creditors, how do you pay your bills? Under your court-approved repayment plan, your debt is reduced, rescheduled and consolidated into one easy monthly payment you make directly to the bankruptcy trustee. The trustee then distributes funds from your payment to your various creditors. Chapter 13 not only reduces your debt, it effectively eliminates all the unpleasantness of managing those bills. Your attorney and bankruptcy trustee tackle all the tough aspects of your filing and you finally get to relax.

Are you late with your bills? Feeling overwhelmed by debt? Don't wait one second longer! Chapter 13 bankruptcy has helped thousands of Georgians take charge of their financial futures.

Call Atlanta DebtStoppers to learn the advantages of Chapter 13 bankruptcy

Find out how a Chapter 13 bankruptcy plan can save your home and give you back your peace of mind. Atlanta DebtStoppers offers free information when contact us online or call 404-796-7161.