A way to keep your home and relieve your debt

Definition of Bankruptcy

Chapter 13 bankruptcy may be the best option to relieve your financial burden. The Atlanta bankruptcy lawyers at Clark & Washington recommends this type of filing for people with large amounts of debt that cannot be discharged through Chapter 7 bankruptcy.

A Chapter 13 filing allows the bankruptcy court to set a schedule for repayment to creditors, usually during a period of three to five years.

Our Atlanta firm provides 12 metro area locations. Our Atlanta attorneys and support staff have decades of experience leading clients through the Chapter 13 bankruptcy proceedings. If you are in need of Chapter 13 assistance, contact one of our skilled attorneys to discuss your options today.

Bankruptcy Attorneys of Atlanta Explains Chapter 13 bankruptcy

Filing for Chapter 13 bankruptcy under federal law is known as debt consolidation or a debt repayment plan. In Chapter 13, as in other forms of bankruptcy, an automatic stay is issued once a petition is filed with a bankruptcy court. Creditors are barred from filing a lawsuit against you for money owed.  And all collection processes, including harassing phone calls, must cease.

Part of the petition filed with a court must contain a repayment plan that the court has the option of rejecting or approving. This plan must specifically outline how you will repay your creditors over a period of 36 to 60 months. Payments are often made one month after the court approves the schedule, with that payment going toward the principal balance of the debt. Creditors cannot charge interest during the repayment period.

Wipe out credit card debt through Chapter 13 bankruptcy

Like Chapter 7 claims, Chapter 13 also helps with credit card debt. Credit card debts are included in a consolidation plan and obligations for those debts are covered by the Chapter 13 repayment plan. Credit card lenders can no longer charge interest once your case has been processed. Lenders also receive a percentage of what they are owed through the case and are paid based on what you can afford at the time. When the Chapter 13 plan is completed, any remaining credit card debt is discharged.

If this sounds like a viable option for you, contact one of our experienced attorneys to find out more about Chapter 13 filing.

The chance to keep your home and other Chapter 13 benefits

A Chapter 13 bankruptcy in Atlanta petition benefits you if you have a steady income during the repayment period. It is also effective if you have a large amount of debt that cannot be discharged by Chapter 7 bankruptcy, such as:

  • Child support payments
  • Property taxes
  • Court-ordered fines and restitution
  • Income taxes for three prior years
  • Spousal support or alimony

Filing under Chapter 13 allows you to keep your property, whether a home or apartment, and avoid foreclosure or eviction. You can also avoid other penalties, such as wage garnishment.

Chapter 13 Costs

The cost to file a Chapter 13 Bankruptcy will be the Federal Court filing fee of $313.00 plus;

$70 that includes:

  • Credit Report from all 3 bureaus. It’s important to have a very accurate report from all 3 bureaus. The court charges a mandatory fee for adding additional creditors after you file.
  • Pre and Post Mandatory Credit Counseling.
  • 8 Year Lien report
  • 24/7 Online Access to all of the above documents
  • Tax Returns for last year filed.

All attorneys’ fees for a Chapter 13 are routinely put into the repayment plan and are priced based on your unique financial situation. The Chapter 13 Trustee will pay the attorney’s fees on a monthly basis along with the other creditors.

Of course, your financial circumstances may change while you are in Chapter 13 – if you find that you can no longer afford your Chapter 13 plan payment, your Clark & Washington lawyer can either modify your plan, or we can convert your case to Chapter 7 and wipe out debts. Either way, your Clark & Washington lawyer will stand by you every step of the way while you are in your bankruptcy case.

Contact us for a free initial consultation about debt modification and Chapter 13 bankruptcy in Atlanta

If you have a steady income but are afraid of losing your home, or you have other kinds of debt, such as student loan debt, that Chapter 7 doesn’t discharge, you might consider filing for Chapter 13 bankruptcy.

Clark & Washington, Attorneys at Law provides clients with guidance and support through court-ordered debt repayment. To learn more about the risks and benefits of filing Chapter 13, call us at 770-488-9302 or schedule online for your free initial consultation.