When Chapter 13 is the most beneficial route rather than Chapter 7 – Augusta GA bankruptcy attorneys

When Chapter 13 is the most beneficial route rather than Chapter 7 – Augusta GA bankruptcy attorneys

Augusta Georgia chapter 7

You should not file for Chapter 7 if you have defaulted on your mortgage or car loan, and want to make up the missed payments over time and reinstate the original agreement. You cannot do this in Chapter 7 bankruptcy. Only Chapter 13 lets you make up missed payments.

Chapter 13 is a wiser alternative when you have a tax obligation, student loan, or other debt that are not discharged in Chapter 7. Your Chapter 13 plan can include these debts and you can pay them off over time.

You should consider Chapter 13 if you have a sincere desire to pay off your debts, but you need the protection of the bankruptcy court to enable you to do so. This may be the case if creditors are gunning for you, or if you simply require 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 to your creditors.
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