If you are struggling to keep up with your monthly bills or have already fallen behind, it may be time to consider filing for bankruptcy. Chapter 13 bankruptcy can be a smart solution if you have sufficient income and are not interested in liquidating your assets. In Chapter 13 bankruptcy, you have the opportunity to restructure your debt so that paying it off is more manageable.
If you qualify for Chapter 13 bankruptcy, then you probably have a steady source of income. However, your debts might still exceed what you can reasonably afford. Chapter 13 gives you the opportunity to create a repayment plan to pay off your debts or, if necessary, to catch up on payments. For example, a Georgia homeowner who is behind on his or her mortgage could use the repayment plan to get current.
Since repayment plans are based on disposable income, you may not qualify if you do not have a steady income. Depending on your situation and just how variable your income is, you might better qualify for Chapter 7. You also cannot file for Chapter 13 if your debt exceed the following limits:
- $394,725 in unsecured debt
- $1,184,200 in secured debt
While it might be the right move, filing for Chapter 13 bankruptcy is not a decision you take lightly. This is wise, as you will need to understand both the benefits and potential drawbacks to taking this important financial step. You may want to consider seeking out guidance from an attorney who is well versed in Georgia bankruptcy law, and you can also find out more information by visiting our website.