Deciding to file for personal bankruptcy can be a difficult process for a Georgia resident. For this reason it can be beneficial to some to consult with legal representatives who understand the types of bankruptcy available to men and women in the state before they commit to a particular bankruptcy path. This post shares general information about Chapter 13 bankruptcy but as with all posts on this blog readers are advised that no legal advice is imparted through its content.

Chapter 13 bankruptcy is sometimes called reorganization bankruptcy. This is because during the Chapter 13 process a person is asked to create a plan to repay their debts to their creditors. They effectively must reorganize their finances so that they can find disposable income to put toward the satisfaction of their debts.

To this end, a person who files for Chapter 13 bankruptcy must have some extra income to use to meet the terms they set in their repayment plan. If a person is completely strapped for money and has no income on which to pay off their creditors they may not qualify for Chapter 13 bankruptcy. Their financial situation may be better suited for the Chapter 7 bankruptcy liquidation process.

A repayment plan under Chapter 13 bankruptcy may take several years to complete which means that a person’s discharge will not be immediate. There are other important requirements and issues that individuals must address in the Chapter 13 process, including whether they will even be able to use it to remedy their debt problems. Working with a bankruptcy attorney is a good way to avoid common bankruptcy mistakes and to find out relevant information related to one’s prospective Chapter 13 filing.