How A Chapter 13 Bankruptcy Can Help You

Chapter 13

How A Chapter 13 Bankruptcy Can Help You

A Chapter 13 bankruptcy is considered a reorganization under federal bankruptcy law found in Title 11 of the United States Code. Bankruptcies filed under Chapter 13 permit natural persons to reorganize the repayment of debts and, more importantly, enable them to keep valuable assets like a personal residence and motor vehicles.

A Chapter 13 bankruptcy case filing allows an individual to become current over time on past-due mortgage payments. More importantly, a Chapter 13 case allows a homeowner to keep his or her most valuable asset – a personal residence. A Chapter 13 debtor who owns a home with a mortgage loan in default and facing foreclosure may repay mortgage arrearages in a Chapter 13 repayment plan.

A Chapter 13 reorganization plan provides up to five years to repay mortgage in arrears. If a foreclosure sale has been scheduled, a homeowners must file a bankruptcy case prior to the foreclosure sale. Waiting until later or even until the last minute is often too late and fatal.

A Chapter 13 plan of repayment also allows the owner of a motor vehicle to restructure past due loan payments. Chapter 13 debtors who own a car, motorcycle or truck purchased for consumer use more than 910 days before the bankruptcy case filing may reduce the remaining principal balance of a motor vehicle loan.

Exemptions may lower the amount of a Chapter 13 debtor’s plan payments to unsecured creditors. Potential Chapter 13 debtors with mostly exempt assets may file a Chapter 13 case and retain most, if not all, of their assets even if no or minimal payments are made to general unsecured creditors through a Chapter 13 plan of reorganization. In a Chapter 13 plan, the total value of a debtor’s nonexempt assets must be paid to general unsecured creditors in the plan. The lower the value of nonexempt assets, the less money that must be paid to general unsecured creditors over the three- to five-year life of a Chapter 13 plan. However, other factors such as income above a certain threshold may results in payments to general unsecured creditors even if assets are exempt.

The decision to file a Chapter 13 bankruptcy case is not a simple proposition and typically requires the analysis of an experienced Georgia bankruptcy attorney. H. Lehman Franklin has helped those seriously affected by financial hardship in the Statesboro community for over 50 years. Along with a capable and dedicated support staff, attorneys H. Lehman Franklin and Kimberly Ward offer quality and zealous representation on behalf of all of their bankruptcy clients. Don’t hire just any bankruptcy lawyer to file your case. You need a lawyer like Lehman Franklin or Kim Ward who have 65 years of collective experience filing bankruptcy cases.

If you’re in need of our services and would like a FREE consultation, give us a call, send us an email at or simply check us out online. Our office is located at 127 North Main Street in Statesboro, GA (30458). We proudly serve Bulloch County, as well as the surrounding counties of Chatham, Candler, Evans, Bryan, Effingham, Screven, and Jenkins. Contact our office by telephone at 912-764-9616. We’re available to meet your legal needs Monday through Friday from 8:30 AM until 5:30 PM.