Chapter 13 Bankruptcy
Can Help You Manage Your Debt
King and King Bankruptcy Attorneys 9/26/2012
In the past, bankruptcy was viewed negatively by most. Today, however, the American Bankruptcy
Institute reports that bankruptcy was unavoidable for nearly 1.5 million
individuals and more than 35,000 businesses nationwide. Georgia
residents considering filing for bankruptcy relief should know that attitudes
have shifted, and many view bankruptcy as a solution to ease the hardship of
debt.
Bankruptcy is a legal process designed to eliminate
overwhelming debts in a variety of ways. One form of bankruptcy is Chapter 13,
which is commonly referred to as "reorganization" or
"wage-earner" bankruptcy. Chapter13 bankruptcy allows filers to clear a large share of their debt through a
repayment plan.
The repayment plan that borrowers enter into establishes the
terms under which the filer will repay their debt. The repayment term typically
runs between three and five years, and a trustee assigned by the court oversees
the repayment process. What debt is included in the final repayment plan
requires a collaborative process, which includes both the courts and the
creditors. Throughout the process, creditors are allowed to comment on the
terms of plan.
In the end, the court must approve the final plan. Once the
plan has been approved, the trustee has been assigned and the terms of the
repayment plan have been established, the court discharges remaining debt that
falls outside the terms of the final agreement. For some, a little debt
reorganization is all the help they need to get back on track. It doesn't take
much to fall behind. Fortunately, with a little help, it is possible to stay on
track to find a fresh start. There are options available, even when the
situation is troubling. For a free consultation with a professional bankruptcy
attorney call King and King at 404-524-6400
Source: CBS News, "Number of individual bankruptcy
filings drop," Ray Martin, Sep. 11, 2012
