Tuesday, April 26, 2016

What Are The Differences Between Chapter 7 Bankruptcy & Chapter 13 in Georgia?

Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most commonly filed types of bankruptcy in Georgia. Whether you can file a Chapter 7 or Chapter 13 bankruptcy depends on your income, assets, debts, and your financial goals. Your attorney will assist you in determining which type of bankruptcy will work best for you.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed to wipe out your unsecured debts, credit cards, and medical bills for example. You would qualify for Chapter 7 bankruptcy if you are unable to pay your debts on time and your income is below the set threshold.
When you file for a Chapter 7 bankruptcy, a trustee is appointed to your case. The Chapter 7 trustee’s job is to sell your nonexempt property to pay back your creditors. If you don’t have any nonexempt assets (most cases are like this), your creditors receive nothing. King & King can help you protect your assets and keep everything you own in most Chapter 7 cases.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is designed for debtors with regular income who can pay back some of their debts through a repayment plan. If your income is too high to qualify for Chapter 7 bankruptcy, a Chapter 13 case can provide you substantial relief. Chapter 13 bankruptcy also offers many benefits that Chapter 7 bankruptcy does not, such as the ability to catch up on missed mortgage payments.
Another benefit of Chapter 13 bankruptcy is you get to keep your property. In Chapter 13 you pay back a portion of your debts through a repayment plan. The amount you pay back depends on your income, expenses, and types of debt. Typically, Chapter 13 bankruptcy is for debtors who can afford to make monthly payments to get caught up on missed mortgage or car payments.

King and King has over 30 years of experience, and we are here to assist you in determining if filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy is best for you. Please call us for a free initial consultation at 404-524-6400 or visit us online at www.kingandkingattorneys.com.