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If you are considering filing for Chapter 13 Bankruptcy in Georgia, there are several benefits to consider. In most cases, this type of bankruptcy is available to individuals, not businesses or stockbrokers. In Georgia, however, individuals need the assistance of a bankruptcy attorney who understands the state’s rules and procedures. Georgia’s bankruptcy laws define an “automatic stay” that stops collection activity and freezes creditors’ collection efforts while you are in the process of filing for bankruptcy.

The first important thing to know is that almost everyone in Georgia who has a consistent income qualifies for Chapter 13 Bankruptcy. A bankruptcy attorney from Georgia meets with hundreds of people each year in cities and towns throughout the state. Chapter 13 bankruptcy is an option for people who are facing financial hardship and have assets over the state’s bankruptcy exemption limits. However, there are a few important distinctions between this type of bankruptcy and Chapter 7 bankruptcy in Georgia.

With Chapter 13, your priority debts will be paid before your non-priority debts. This way, more of your monthly payment will go toward the pressing debts, which will ultimately improve your credit score over time. In addition, you cannot incur new debt during this time. Furthermore, you cannot sell your property without court approval. As long as you follow these rules, your bankruptcy will be a success. Once you complete the process, your finances will improve drastically.

In order to qualify for Chapter 13 bankruptcy, you must make monthly payments that are listed on your repayment plan. You should make all payments that you have agreed to prior to confirmation of the plan. Also, many courts require debtors to submit an Employee Deduction Order to their employer. This order will cause the debtor’s employer to send a portion of their wages to the Chapter 13 Trustee. This step is important because it will let employers know that you are filing for Bankruptcy.

Another benefit of Chapter 13 Bankruptcy in Georgia is the ability to track and manage your payments online. Through the bankruptcy filing, you can see where you have made payments to which creditors. If you have secured debts like a mortgage, car loan, or tax, these will be paid first. Unsecured debts, such as credit cards and medical bills, will be paid to unsecured creditors. This means that you must prove that you can continue making monthly payments within the limits set by the bankruptcy court.

In Georgia, you must keep in mind that a Chapter 13 bankruptcy does not require your car or other property to be repossessed. In addition to lowering your car loan payments, it also allows you to pay priority unsecured debts, such as back taxes, alimony, and most government debts. You must also pay administrative amounts, such as the Chapter 13 trustee’s fees. These payments are paid out of your non-exempt assets.