2987 Clairmont Road, Suite 350 | Atlanta, Georgia 30329

What are the Advantages of Filing for Chapter 13 Bankruptcy?

Few things can be more stressful than facing overwhelming debt. If you are burdened by significant financial difficulties, you may be considering filing for bankruptcy. However, if your income is too high to file for Chapter 7 bankruptcy and you do not pass the “means test,” you may have the option to seek relief under Chapter 13 bankruptcy.

Commonly referred to as a “wage-earner’s plan,” Chapter 13 reorganizes your debts, unlike a Chapter 7 filing, in which they are discharged. Specifically, Chapter 13 allows debtors to enter into a repayment plan lasting three to five years. How long the plan will last is determined by the average monthly income you brought home over the previous six months. You must earn enough regular income to qualify for this type of bankruptcy filing.

By filing for Chapter 13 bankruptcy, you can:

  • Enter into a plan to pay what you can afford
  • Keep all of your property
  • Repay your debts
  • Retain your house and vehicle
  • Avoid foreclosure

It’s important to consider the types of debts you have when determining whether you should file for Chapter 13 bankruptcy. While some debts must be paid in full, others only require that you pay back a portion of what is owed. For example, secured debts and priority debts such as taxes, alimony, child support and back wages must be fully paid. Any other debts would be classified as non-priority and unsecured debts. Typically, debt is paid to unsecured creditors only once priority and secured debts have been fully repaid.

There are certain criteria to keep in mind when filing for Chapter 13 bankruptcy. For instance, to be eligible for Chapter 13, you must not have had a bankruptcy dismissed within the previous 180 days, or have had a debt discharged in a Chapter 13 bankruptcy within the past two years. You would also not qualify for Chapter 13 if you had debt discharged in a Chapter 7, Chapter 11 or Chapter 12 bankruptcy within the past four years.

The bankruptcy attorneys at Rountree Leitman & Klein LLC offer reliable representation and experienced counsel to clients throughout Georgia regarding Chapter 13 bankruptcy. Call 404-737-9623 or contact us online to schedule a free consultation in our Atlanta office.

Choose a location to review

Rountree Leitman & Klein LLC locations:

Reviews & Ratings

  • lawyers
    5.0/5.0

    Hacknet Credit Specialist is miraculous! I had an American Express business debt that was being listed on my personal credit I couldn't get anyone to remove it but Hacknet got it removed with some other things affecting my credit report jus...
    Show More

    — Client

  • avvo
    5.0/5.0

    William and his team are very professional, thorough, knowledgeable, and helpful. Having our business get hit hard by the pandemic, they came to the rescue and held our hand through a very difficult time. They understand how to provide th...
    Show More

    — Client

  • avvo
    5.0/5.0

    I can't stress enough how confident my wife and I are that we chose the right attorney. We were small businesses owners that lost everything during the COVID pandemic, and our case was somewhat complicated because of the multiple businesse...
    Show More

    — Client

  • avvo
    5.0/5.0

    Will and Sharon made this process so much easier for me. No one wants to be on this situation and also in the middle of a divorce. They were very professional, knowledgeable, compassionate, organized. I can’t say enough about how they excee...
    Show More

    — Client

  • avvo
    5.0/5.0

    Will and his team did a great job for me. I was skeptical in the beginning due to past experiences I had with attorneys, but on the most part, I would say he and his team were on top of things, and got the job done and I'm in a much better ...
    Show More

    — Client

Quick Contact

Please fill out the form below and one of our attorneys will contact you.

!
!
!