Is Chapter 13 Better For You?

East Cobb Chapter 13 bankruptcy is for people who are earning some income and who are able to pay off some portion of their debt over the course of 3-5 years. Debt repayment plans are part of every Chapter 13 filing, and much of your case will involve determining how to structure your plan. The court designates your payment plan length; if your annual income is greater than the state median, then your plan will most likely last five years (the maximum duration). People tend to file under Chapter 13 if they have: mortgages or other loans that they want to repay in order not to forfeit their homes or property; taxes, child support, or student loans that cannot be erased by East Cobb Chapter 7 filing; or the belief that debt should be repaid.

Filing for East Cobb Chapter 13 begins with entering a petition to the bankruptcy court, along with a list of your current income and assets as well as all expenses, creditors and liabilities. The information you provide on these statements must be accurate and honest, since debts not listed will not be cancelled, and hiding assets or income can result not only in denial of bankruptcy relief, but also in serious fines and in some cases fraud charges. Your filing under an East Cobb Chapter 13 must be accompanied by a proposed payment plan for evaluation by the court. The payment plan has to account for “priority claims” (such as taxes) in full, unless the creditor allows an alternate arrangement. An appointed trustee reviews the plan for its feasibility, and after obtaining agreement of creditors (who can raise objections if they consider the plan unreasonable), it is approved or dismissed. If approved, you get to retain all your assets while fulfilling the plan; you make monthly payments to the trustee, who then pays your creditors. Once the plan has run its course, the remainder of your debt is discharged, as is your obligation to pay further.

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