To obtain a bankruptcy discharge in a Chapter 7 bankruptcy in Georgia, you must meet income requirements to file under Chapter 7. Chapter 7 bankruptcy cases are often referred to as “liquidation” bankruptcy cases. A Georgia Chapter 7 trustee analyzes the debtor’s property to determine if the Chapter 7 trustee can sell the property at a bankruptcy auction. The proceeds from the sale are used to pay the debtor’s unsecured creditors.
A Chapter 13 bankruptcy case consolidates and restructures your debts into a bankruptcy repayment plan. Instead of paying unsecured creditors (i.e. credit card debt, medical bills, and personal loans) the full balance owed on the account, you pay a small percentage (or sometimes nothing) of the debt. Once you complete your Chapter 13 plan, these debts are discharged or forgiven.
You are not able to get rid of some debts in bankruptcy. However, through a Chapter 13 plan, you can repay many of these debts in full over three to five years. Priority unsecured debts that must be paid in full in a Chapter 13 or Chapter 7 case include alimony, child support, and most taxes. You must also pay any back mortgage payments in full if you want to keep your home.
The bankruptcy stops foreclosures, repossessions, wage garnishments, and debt-collection lawsuits. A Chapter 13 bankruptcy case allows you to keep your home and your vehicle by giving you more time to catch up the payments.
