The idea of creating a repayment plan to pay off one’s debts through bankruptcy may seem like a strange process to a Georgia resident. That is because not everyone is familiar with Chapter 13 bankruptcy. While many people have heard of Chapter 7 bankruptcy and its liquidation procedures, Chapter 13 bankruptcy may serve the needs of those who have some disposable income to use to begin to pay down their financial obligations.

Chapter 13 bankruptcy has filing requirements that include limits on how much debt individuals can have and how much extra income they can use to pay off their creditors. If a debtor meets the requirements for filing for Chapter 13 bankruptcy, then they will be asked to develop a repayment plan that outlines what debts they will pay down, how their income will be distributed for the repayment of their debts and how long it will take for them to satisfy their outstanding debts. Repayment plans must be approved by the bankruptcy courts before they move forward.

Chapter 13 bankruptcy is not for everyone and readers should be aware that this post offers no legal advice. When individuals wish to learn more about bankruptcy and what it can do for them, they should seek professional guidance.

Chapter 13 bankruptcy is only one option for individuals who need help getting out of financial holes. However, it may be one worth looking into, especially if a person doesn’t qualify for Chapter 7 bankruptcy. A successful Chapter 13 filing can provide a means to address one’s debts in a productive manner, allowing them to move forward on fresh financial footing.