Why You Should Consider Filing Chapter 13 Bankruptcy in Atlanta Explained By A Bankruptcy Attorney in Atlanta
If you are exploring bankruptcy, you probably know about the two main types of consumer bankruptcy in Atlanta; Chapter 7 and Chapter 13. You also probably know the benefit of Chapter 7 bankruptcy insofar as you can wipe out your credit card and unsecured debt. But take a look at Chapter 13 bankruptcy and you may find it’s a better option.
The following 12 reasons to file Chapter 13 in Atlanta are worth a look:
1. Chapter 13 is flexible – At any point, you can either convert the case to Chapter 7 or dismiss it. Moreover, you can modify the payment plan if you have a change in income or decide to give up a house or car. And you can refinance or sell your house during the administration of the plan.
2. If you are facing foreclosure because of non-payment, you can include these past due payments in your plan and save your house. Putting past due payments in the plan gives you the chance to catch up since you have until the end of the plan to make those payments.
3. You can use the Chapter 13 to remove an “unsecured” second mortgage from your home.
4. You can challenge the costs added to your mortgage by the lender.
5. Trustees want you to succeed, so they will cooperate with you.
6. Some debts that you cannot include in Chapter 7, such as divorce payments, can be included in Chapter 13.
7. Reaffirming your car isn’t necessary in order to keep it.
8. The fee you pay your attorney can be spread out rather than being paid in full before you file.
9. Payments like car payments or other secured debt can be extended.
10. You will have up to 5 years to get caught up on past due taxes or child support/alimony obligations.
11. A Chapter 7 case can be challenged by a United States Trustee based on your income; a Chapter 13 case cannot.
12. You will not lose any of your property, regardless of whether it is exempt.
Unfortunately, the term bankruptcy still has a negative connotation. But the fact remains – declaring bankruptcy is a compelling way to make a fresh start, to clean the slate, so to speak. There are pros and cons to both Chapter 7 and Chapter 13 so it’s a good idea to speak with a skilled Atlanta bankruptcy attorney before you file. Be sure you hire a bankruptcy attorney in Atlanta with extensive experience in bankruptcy law so he can answer all your questions about bankruptcy and how filing will affect you, your property and your future.