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.
