770-609-1247 | Chapter 13 Personal Bankruptcy

Call 770-609-1247 to Speak With an Experienced Cumming, Georgia Bankruptcy Attorney.

Quality of service and competence matters. We have over fifteen years of experience helping hundreds of people and businesses deal with crushing debt. Under the bankruptcy code you can obtain immediate debt relief. Let us help you.

A Chapter 13 Personal Bankruptcy, is a kind of bankruptcy filed by individuals (one person or a married couple) that plans an organized schedule for the debtor(s) to catch up back payments while still keeping valued assets – such as a home, real property, investments and/or automobiles. It is important to note, only individuals can file Chapter 13 cases, business seeking similar relief would have to file a Chapter 11 case.

The Chapter 13 bankruptcy plan is created to map out how the debtor(s) plan to repay creditors over a certain amount of time (three to five years). The Chapter 13 bankruptcy plan is presented in court and to the Bankruptcy Trustee for approval. Creditors and the Bankruptcy Trustee can object to the approval (confirmation) of the Bankruptcy Plan – and a Bankruptcy Judge may have to personally review the plan and either approve or deny the plan. After the Bankruptcy Court’s approval, the Chapter 13 trustee assigned to the case is now responsible to facilitate the process of gathering the debtor(s)’ monthly payments and allocating them among the creditors that filed approved proof of claims.

Specifically effective April 1, 2016 and effective for the years 2017 and 2018, the unsecured and secured debt limits for filing a Chapter 13 bankruptcy in accordance with 11 U.S. Code § 109(e) of the Bankruptcy Code are as follows:

• Unsecured Debt Limit: $394,725
• Secured Debt Limit: $1,184,200

These debt limits adjust every three (3) years, with the next chapter 13 debt limit adjustment occurring on April 1, 2019.

If the debtor(s)’ income is lower than the region’s median income, then the plan is typically three (3) years. And if the debtor(s)’ personal income is higher than the median income, then the Chapter 13 plan will usually be five (5) years in length. There are some instances where a person that qualifies for a three year plan may opt for a five year plan; and someone that would normally qualify for a five year plan may opt for a three year plan. However, like all bankruptcy plans – the court grants final approval. Federal bankruptcy law forbids any Chapter 13 payment plan to exceed five years.

Several advantages allow a Chapter 13 to be preferable to a Chapter 7 of liquidation. For example, in a successful Chapter 13 case, the debtor(s) can prevent keep their homes from going to foreclosure. However, as a part of a successful Chapter 13 plan, they must still make all mortgage payments in a timely fashion. Also, individuals can rearrange secured debts so that they can plan them out over the time span of the Chapter 13 plan, which may reduce the monthly payments. This is most common with automobiles and other types of installment loans. Also, benefiting from the automatic stay, debtors are protected from direct contact with creditors because of the role of the Chapter 13 trustee in the case. Finally, many types of debts that are not dischargable in a Chapter 7 bankruptcy case may be dischargable in a Chapter 13 case. These include, but are not limited to: Non-Support Obligations Owed to an Ex-Spouse and “Willful and Malicious Injury” claims.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Coleman Legal Group, LLC’s Georgia lawyers practice in the areas of Divorce, Family Law, Estates, Wills, Trusts, Probate, Bankruptcy, Business Law and Immigration. We have offices conveniently located at:

Cumming Georgia
The Avenue Forsyth
410 Peachtree Parkway
Building 400, Suite 4245
Cumming, GA 30041
Phone: 770-609-1247 | Map

Alpharetta Georgia
North Point Park
5755 North Point Parkway
Suite 51
Alpharetta, Georgia 30022
Phone: 770-609-1247 | Map

Other Offices Throughout the Atlanta Metro Area

Copyright © 2020 | Coleman Legal Group, LLC | All Rights Reserved. Coleman Legal Group, LLC • 5755 North Point Parkway, Suite 51 • Alpharetta, GA 30022 • 770-609-1247 DISCLAIMER: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.