When Chapter 13 is the best choice rather than Chapter 7 – Oconee County GA bankruptcy attorneys
Athens GA bankruptcy law firm
You should not file for Chapter 7 when you are behind on your mortgage or car loan, and want to regularize the missed payments over time and reinstate the original agreement. You cannot do this in Chapter 7 bankruptcy. You can make up missed payments only in Chapter 13 bankruptcy.
Chapter 13 is a wiser choice if you have a tax debt, student loan, or other debt that are not discharged in Chapter 7. You can include these debts in your Chapter 13 plan and pay them off over time.
You should consider Chapter 13 when there is a real intent to repay your debts, nonetheless you need the protection of the bankruptcy court to enable you to do so. This can be the case if creditors are behind you, or if you simply need the formal structure and deadlines the Chapter 13 process provides in order to follow through on your sincere intentions.
When you have nonexempt property that you want to keep, Chapter 13 filing is the one for you. When you file for Chapter 7 bankruptcy, you get to retain only exempt property – property that is safe from creditors under state or federal law. You must give your nonexempt property to the bankruptcy trustee, who can sell it and distribute the proceeds amongst your creditors.
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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy
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