There are two ways for people in Georgia to file for bankruptcy: Chapter 7 and Chapter 13. Each involves reviewing how much debt you owe and how much income you bring in each month. Often, you will be eligible for either one or the other, but in some cases, you may qualify for both Chapter 7 and Chapter 13 bankruptcy. If this is your situation, you may have a choice between the two. Each has strengths and weaknesses but, if you have a large amount of assets, Chapter 13 offers advantages that may make it more suitable. Your bankruptcy attorney will review the pros and cons with you so you may make an informed decision.
If you are worrying about losing your car, home, or other assets upon filing for bankruptcy, Chapter 13 may be the better option for you. While Chapter 7 involves liquidating unexemptable assets to satisfy your debts, Chapter 13 reorganizes your debt into a repayment plan and protects your property.
Another advantage of Chapter 13 is that you know going into it that the repayment plan will work for you because it’s built from your current financial situation and income. Under your repayment plan, you may only pay off a portion of some debts but may pay off others entirely. Each case is different. Your attorney tailor-makes your case for you, depending on a variety of factors.
For most clients, the duration of your repayment plan typically lasts from three to five years. King and King will evaluate your situation and determine if Chapter 13 or Chapter 7 bankruptcy is right for you. Call our office today at 404-524-6400 to schedule a free, confidential consultation to discuss your options or visit us at www.kingandkingattorneys.com.