CONTACT US AT: 706-755-2928

Augusta, GA Office:

Duncan & Brow, Attorneys at Law, LLLP

2608 Commons Boulevard, Suite A
Augusta, GA 30909

Phone: (706) 755-2928

Map to Our Office

Greensboro, GA Office:

Duncan & Brow, Attorneys at Law, LLLP

105 N. East Street, Suite B
Greensboro, GA 30642

Phone: (706) 755-2928

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Chapter 13 Bankruptcy

Augusta Georgia Chapter 13 Lawyer

What is a Chapter 13?

Chapter 13 bankruptcy works differently from Chapter 7. In Chapter 13 cases, the courts work out a plan to pay off the debts over time. These cases are designed for people who have a regular income.

The debtor proposes a plan to pay off all of the debts, usually over a period of three to five years. Chapter 13 allows the debtor to retain ownership of certain assets. For this reason, it is often a better option for many debtors.

The plan is based on how much money the debtor expects to earn and is designed to set up payments that are reasonable and can be made without causing serious financial hardship.

A court will review the plan to make sure it is legally sufficient and may reject it or insist it be modified. Once the plan is confirmed by the court, the debtor will begin paying off the debts by making payments to a trustee.

Chapter 13 protects a debtor from creditor lawsuits, wage garnishment and collection agency harassment.

The debts will be discharged and the bankruptcy case concluded only after all the payments are made. Another advantage of Chapter 13 over Chapter 7 for many debtors is that more types of debts can be taken care of in a Chapter 13 case.

The name of the statute is Adjustment of Debts with Regular Income.

Are there other types of bankruptcy?

Yes, there are several types of bankruptcy. Chapter 7 and Chapter 13 are the types used by individuals. Chapter 11 is for companies that need to reorganize. There are also chapters for railroads, farms and local governments.