Georgia Chapter 13 Bankruptcy: Restructure & Retain

For many Georgians, Chapter 13 bankruptcy offers a path to keep important assets—like a home or car—while systematically paying down debts. Filing initiates an automatic stay, halting creditor harassment,foreclosure, and wage garnishments. Over a three- to five-year plan, you’ll catch up on arrears and ensure priority debts are handled, ultimately emerging with a discharge on remaining unsecured obligations.

Below, we’ll detail how Chapter 13 compares to Chapter 7, what debts remain after you’ve completed the plan, and how Georgia exemptions can shield your property.

How Chapter 13 Works in Georgia

Under Chapter 13, you submit a repayment plan for court approval, detailing how much you’ll pay on secured, priority, and unsecured debts. If you’re behind on your mortgage, you can spread out payments over the plan’s length, preventing immediateforeclosure actions. Upon successful completion, qualifying unsecured debts like credit cards or medical bills are discharged.

Comparing Chapter 7 and Chapter 13

If you have limited income or primarily unsecured obligations, Chapter 7 might provide a faster debt wipeout. Chapter 13 is preferable for individuals who want to keep secured property and can afford monthly payments. Chapter 13 also covers debts not easily dischargeable under Chapter 7, such as certain tax debts or back mortgage payments.

Which Debts Remain?

Similar to Chapter 7, student loans, some tax obligations, and domestic support(alimony or child support) typically survive Chapter 13. However, reorganizing them into an affordable plan can reduce immediate strain and keep you out of collections or wage garnishments.

Georgia Exemptions

Georgia requires using its own exemptions rather than the federal set. This generally includes a homestead exemption, personal property exemptions, and retirement account protections under O.C.G.A. § 44-13-100. In Chapter 13, the value of your non-exempt property can influence how much you must pay unsecured creditors—but the automatic stay still halts repossessions and forced sales while you’re under court protection.

Disclaimer: This information is for educational purposes and does not constitute legal advice. Always consult a licensed Georgia bankruptcy attorney for personalized guidance.