Filing For Chapter 13 In Georgia

Filing for bankruptcy in Georgia is complex. You will require the services of an experienced bankruptcy attorney. A small error can prove costly and your bankruptcy petition can be dismissed. If your bankruptcy petition is dismissed, it can have serious consequences including restrictions on future bankruptcy filing.

Chapter 13 in Georgia

Bankruptcy allows individuals and business in debt to legally discharge their debts. Bankruptcy will discharge most debts. Individuals generally file for bankruptcy in Georgia under Chapter 7 or Chapter 13. In a Chapter 13 bankruptcy proceeding the debtor submits a repayment plan to the bankruptcy court. Once the repayment plan is approved by the bankruptcy court the debtor has to make payments according to the plan to the bankruptcy trustee who will forward the payments to the creditors. The debtor continues to retain his or her assets during the bankruptcy proceedings. Chapter 13 bankruptcy is also known as the wage earner’s plan.

Documents

In Georgia the debtor must file the Chapter 13 bankruptcy petition with the bankruptcy court having jurisdiction over his or her place of residence. The debtor must submit a statement of financial affairs and the following schedules:

assets and liabilities;
current income and expenditures;
unfulfilled contracts and unexpired leases.

The debtor must also provide the following information:

list of all creditors, the nature of their claims and their dues
debtor’s income details
details of debtors monthly living expenses – home, taxes, utility bills, transport, clothing, medicine, etc

Once the petition is filed an automatic stay will come into operation. This stay prohibits creditors from contacting the debtor or taking steps including legal action to recover their dues. Also upon filing of the petition, an impartial bankruptcy trustee is appointed.

Plan and Discharge in Georgia

The debtor’s repayment plan in a Georgia bankruptcy must explain in detail how he or she will repay each of the debts. There is no official format for a Chapter 13 plan. The debtor must submit the repayment plan to the bankruptcy court and must start making payments within 30 days after the plan is submitted to the court. In Georgia a Chapter 13 repayment plan generally provides for payment of the debts within 3 years. In some cases, the bankruptcy court may grant 5 years for making payments. Once the debtor completes the payments as per the repayment plan, the debts will be discharged. If the debtor is unable to complete the payments as per the repayment plan due to reasons beyond his or her control, the bankruptcy court can grant a hardship discharge.

Getting Legal Help

If you are contemplating filing bankruptcy in Georgia, consult with an experienced bankruptcy attorney. The attorney can assist you with the filing and preparation of the repayment plan.

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