Bankruptcy offers an excellent option for Georgia residents to settle their debts and emerge from the process with a clean financial slate. Those who earn an income and who can afford to contribute some of their wages to the repayment of their debts may qualify for Chapter 13 bankruptcy. In this form of bankruptcy, a debtor follows a repayment plan for several years until they have satisfied the debts included in the plan.

Readers will note that the term “included debts” is important in understanding that some debts will survive a Chapter 13 discharge. Particularly, any debts that are left out of the repayment plan will not be subject to its terms. Therefore, if a debtor fails to include all possible debts in the plan, those that were left out will still exist after their bankruptcy discharge.

Additionally, certain debts cannot be discharged through bankruptcy. Any debts that exist due to unpaid child support will remain after a person’s repayment plan is completed, as will any debts that relate to other legal judgments like criminal fines and restitution. In many cases, individuals cannot discharge their student loans in bankruptcy and those debts will survive their Chapter 13 discharge.

A person must know what they are getting into when they decide to pursue debt relief through the Chapter 13 bankruptcy process. It is possible that not all their debts will be eliminated, and they will be held to their repayment plan to keep their creditors satisfied with their progress. An attorney can provide guidance and information to individuals who wish to learn more about this possible debt relief option.