Struggling to pay back your debt? Feel like you’ll never experience financial freedom? If you’re feeling overwhelmed by seemingly insurmountable debt, the good news is that you have options. For many individuals and business owners alike, filing for bankruptcy can help to alleviate much of the stress that comes along with excess debt.

If you’ve started researching bankruptcy in Georgia, you may be feeling overwhelmed. How can you know whether bankruptcy is actually right for you? Likewise, how can you determine which type of bankruptcy to file? Our team at Clark & Washington PC is here to help. As Georgia’s largest bankruptcy filer, we have the experience and resources to help you file for $0 down.

The Difference Between Chapter 7 and Chapter 13

Before you get started, it’s a good idea to understand the key differences between Chapter 7 and Chapter 13 bankruptcy. The main difference is that with Chapter 7, you are required to sell off some or all of your property and/or assets to pay off as much of your outstanding debt as possible. 

With Chapter 13 bankruptcy, on the other hand, your debt is reorganized in such a way that you can keep your assets (such as your home and your car) while following a court-mandated repayment plan that has been arranged with your creditors. Typically, this payment plan is structured in such a way that it can be paid off within three to five years.

Another key difference to be aware of is in the eligibility requirements for Chapter 7 versus Chapter 13. Specifically, Chapter 13 bankruptcy is only available to individuals and sole proprietors. It is not an option for business entities. Chapter 7 bankruptcy, on the other hand, can be filed by both individuals and businesses alike.

Chapter 7 and Chapter 13 also differ when it comes to how long they stay on your credit report. A Chapter 7 bankruptcy, for instance, will remain on your report for up to 10 years from the date it was filed. A Chapter 13 bankruptcy, on the other hand, will automatically fall off your credit report after seven years. Because bankruptcy can have a substantial impact on your credit (and you ability to take out loans in the future), this is something to consider carefully.

Which Option is Best For You?

Ultimately, the bankruptcy option that is best for you will depend on your unique financial situation. For many people in debt throughout the state of Georgia, Chapter 7 is the more appealing option because it allows the discharge of many types of debt without the need for repayment. On the other hand, for those with debts that cannot be discharged in Chapter 7 (such as student loans and back taxes), it may make more sense to file for Chapter 13.

Likewise, those who have fallen behind on their mortgages and are facing the threat of foreclosure may be better off filing Chapter 13 bankruptcy. That’s because this type of bankruptcy allows you to make up missed mortgage payments and stop the foreclosure process.

Reasons to Work With a Bankruptcy Attorney

Regardless of whether you’re leaning towards filing Chapter 7 or Chapter 13 bankruptcy, it’s always a good idea to have legal representation throughout the entire process. An experienced bankruptcy attorney will be able to consult with you and help you decide which type of bankruptcy is best for your needs and goals. From there, a bankruptcy attorney can assist you in filling out the proper paperwork and making sure you have all the documentation you need to file.

Meanwhile, a bankruptcy can serve as your advocate throughout the filing process, working to discharge as much of your debt as possible or work out a debt repayment plan that works for your needs and lifestyle. In many ways, working with a Georgia bankruptcy attorney can help the entire filing process go much more smoothly and save you from many headaches along the way.

Because Georgia has some specific laws regarding Chapter 7 and Chapter 13 bankruptcy, it’s also important to work with a bankruptcy attorney who has plenty of experience filing here in The Peach State.

Schedule a Free Consultation Today

If you’re thinking about filing for bankruptcy, don’t cause yourself more stress by trying to do it alone. Make sure you have legal representation from a professional legal team that will keep your best interests at the forefront.

At Clark & Washington PC, we take pride in being the largest bankruptcy filer in the state. We’ve helped people like you achieve freedom from their debt while enjoying a greater level of financial freedom and peace of mind. In many cases, we can even file for our clients with $0 down.

Schedule your free, no-obligation consultation with our team today to find out more about whether Chapter 7 or Chapter 13 bankruptcy may be right for you. Contact us at (770) 488-9302 to get started.