Atlanta Georgia Chapter 13 Bankruptcy Attorneys
You deserve a break. Schedule a free consultation today to talk to one of our specialists. Keep reading to learn more about Chapter 13 bankruptcy.
Chapter 13 Bankruptcy Overview:
The Basics: Chapter 13 bankruptcy is often referred to as the “repayment plan” or “debt consolidation” bankruptcy route. Since every individual’s financial situation (income, assets, and debts) is different, every Chapter 13 case can differ in repayment structure, complexity, or end result. Chapter 13 bankruptcy differs from Chapter 7 by better allowing you to keep valuable assets.
Repayment Plan: Filing for Chapter 13 bankruptcy allows a person with regular monthly income to create a repayment plan that lasts anywhere from a few months to five years. Most plans are completed in three to five years. This plan helps you catch up on past due amounts while also stopping all credit actions like foreclosure, evictions, repossessions, wage garnishments, child support delinquency actions, tax lien collections, and more. The monthly payment is the most important aspect of Chapter 13; this payment is solely based on the debts you propose to pay over the course of the plan. Most people find their payment plans manageable, leaving them room to better plan out their finances.
One of the greatest benefits provided by Chapter 13 is that it allows you to reduce the interest rates and the amount owed on vehicle loans, or remove second mortgages entirely. Some people may be required to pay some of their unsecured debts (interest-free), while others are required to pay all of their unsecured debts (interest-free); this is heavily dependent on variables such as property equity, prior bankruptcy discharges in recent years, or the funding extravagant/ unnecessary assets. However, the majority of people who go this route do not pay any of their unsecured debts.
Once the case is completed, any remaining debts are eliminated. For more information about the amount that you could potentially pay, review our “Chapter 13: Payment Estimator” below.
The Plan Process: The Chapter 13 plan (“Plan”) is a detailed proposal that outlines your intentions of getting caught up on past-due payments. The plan contains a few important provisions:
1) The monthly amount you propose to pay towards delinquent debts
2) A list of each creditor you intend to pay throughout the case
3) A breakdown of how much each creditor will receive monthly. (The bankruptcy code and local rules provide the order in which creditors are paid)
4) The commitment period, which is the length of time you are required to remain in the case, if you are not paying 100% of all of your debts
5) A list of assets you desire to return to creditors
6) A list of judgments and how they should be handled in the case
7) The amount of attorney’s fees that the attorney and you have agreed upon, and a provision of how much the attorney will receive if the case is not successful
8) Any provision to explain a proposed payment, or treatment, to any creditor not list in the above sections.
In 2017, all bankruptcy districts adopted either the national Chapter 13 plan or a form plan for use in all Chapter 13 cases. A copy of the plan template can be located on the court’s website.
EVER WONDER HOW MANY BANKRUPTCIES ARE FILED YEARLY?
Below are the year-to-date figures for bankruptcies filed in the Northern District of Georgia for the last four years.
28,814
Year-to-date: 2019
18,442
Year-to-date: 2020
13,761
Year-to-date: 2021
13,709
Year-to-date: 2022
ELIGIBILITY
Who Qualifies For Chapter 13?
Regular Monthly Income:
Must have regular monthly income to sustain the monthly payments.
Debt Limits:
Secured debt must be less than $1,149.426.
Unsecured debt must be less than $383,175.00.
No Dismissals With Prejudice:
Cannot have a prior 109(g) dismissal, within the last 180 days, preventing you from filing.
CONFIRMATION OF PLAN
A Few More Important Notes:
The Trustee:
A Standing Chapter 13 Trustee is assigned to every Chapter 13. You will have an opportunity to meet the trustee at the 341(a) meeting. The Chapter 13 trustee is responsible for evaluating the case, ensuring the client's compliance with applicable laws, and disbursing payments to creditors. The Chapter 13 trustee is paid a percentage of the total debt proposed to paid in the case, and they will deduct this percentage from every payment made to their office. The trustee's office is fairly responsive to questions, but if you are represented by counsel, they will suggest that you contact your attorney for most questions; additionally, they are not allowed to give you legal advice.
Confirmation Hearing:
The confirmation hearing is one of the most important hearings in Chapter 13. At this hearing, the court will either approve or deny the proposed repayment plan. After many attempts to get the court to approve the repayment plan, a case may even be dismissed. Weeks prior to this hearing, clients collaborate with their attorneys to resolve any issues the Chapter 13 trustee or creditors may have with the repayment plan or petition. If all issues are resolved and the client has demonstrated that they can timely pay for everything, the court will approve the case. However, a case's initial success is largely based on how well the client and attorney cooperate during this part of the process.
The Chapter 13 process can be an extremely complex and complicated process. Please give us a call for your free consultation, if you are considering filing.
Upfront & Easy Payments
Chapter 13: Payment Plans
Chapter 13 Costs:
$338.00 – Includes your filing fee and credit counseling course. These costs must be paid prior to filling.
Chapter 13 Attorney's Fee:
In Chapter 13, payments to attorneys are paid through your monthly, bankruptcy payments. No payments will be remitted towards attorney's fees until your case is approved by the Court. The attorney fee for a Chapter 13 bankruptcy is $4,000.00; however, there may be an additional $250.00 added for each out-of the ordinary complication.
Chapter 13 Fee Applications:
Although our attorney-client contract reserves the right to charge additional fees above what is customarily charged for routine cases, we do not file fee applications, unless the case becomes overwhelming complex, or complicated. We will always consult with you first before seeking additional compensation.
Chapter 13 Reimbursements:
Since the attorney's fees include expenses for multiple events that you will likely encounter during the 36 - 60 months that you are in your case, if those events do not occur, we will remit any reimbursement to your Chapter 13 trustee to help you pay off your case quicker.
Why Choose Chapter 13?
Advantages:
Can eliminate second mortgages and tax debts
Attorney's fees are paid through the case.
Prevents foreclosures and repossessions.
No one loses property - exempt or non-exempt
Reduce interest rates and vehicle loan amounts
Repay Child Support Arrears
Restore your driver's license
Manage all debts with one monthly payment
Disadvantages:
Last 3-5 years.
Debts are only eliminate at the end of the 3-5 years.
More expensive than the Chapter 7.
Cannot incur any new debt without court approval.
