If you’ve determined that filing for bankruptcy is the most effective solution for your financial situation, you must choose between Chapter 7 and Chapter 13 bankruptcy. While both have their benefits, Chapter 13 can help those who need to maintain their property and see less effect on their credit scores. To be eligible to file for under Chapter 13, you must meet the following criteria.

Chapter 13 Bankruptcy Eligibility Requirements

Income

Since a Chapter 13 bankruptcy requires you to pay back all or part of your debts through a repayment plan, you must be able to show you have the means to make your payments. Your income may come from a variety of sources, including your wages or salary, commissions, pension plan, Social Security benefits, unemployment benefits, child support or alimony, and your spouse’s earnings.

Outstanding Debts

Another qualification factor is the total amount of outstanding debts you have. Generally, there is a higher limit for secured debts such as student loans, taxes, and mortgages and a lower maximum for unsecured debts such as credit cards, medical bills, and legal fees. This makes it easier to create a repayment plan during the bankruptcy process.

Credit Counseling

Before declaring bankruptcy in Georgia, you are also obligated to complete credit counseling. This must be done through a state-approved agency within 180 days of filing. During these sessions, a counselor will go over your bankruptcy options and explain exactly what you can expect from the process.

If you’re eligible to file a Chapter 13 bankruptcy, contact an attorney to begin the journey to debt relief. The highly qualified legal team at Brian R. Cahn & Associates, LLC has helped many Cartersville, GA, residents get back on track with their finances. They take the time to fully understand each client’s situation so they can appropriately assess who is a good candidate for Chapter 13 bankruptcy. Contact them at (770) 382-8900, or visit their website for more information.