In Georgia, chapter 13 bankruptcy requires a repayment plan as part of the provisions of the claim. The repayment plan offers some restructuring of debts. However, conditions apply to certain debts. A Bankruptcy Lawyer in Gainesville GA introduces the plan to the court based on these terms and stipulations.
What Administrative Fees Apply and How are They Paid?
The filing and attorney fees are paid at the beginning of the claim. They are calculated by the attorney. These fees are paid before the case proceeds through the court. Additionally, a trustee that works with the court and the attorney is paid a commission. They receive at least three percent of the total monthly payment.
What Debts Require 100% Payment?
The consumer must pay 100% of the total payment for specific debts in the plan. These debts include their mortgage payment, child support, alimony, and existing loan payments. The value is included in the payment plan for the chapter 13 bankruptcy.
The consumer isn’t responsible for 100% percent of late payments or charges immediately. These values are added to the end of the bankruptcy claim. However, the court discharges a portion of these fees to present a more affordable payment option.
How are Unsecured Debts Managed?
Under the terms of the bankruptcy claim, all disposable income is used to pay off unsecured debts. The trustee monitors the consumer’s incoming earnings to ensure that this stipulation is followed. Disposable income is the balance left after monthly obligations, household expenses, and recurring medical requirements are paid.
How is the Length of the Claim Identified?
Consumers with an income level that exceeds $51,036 are assigned a five-year plan. Consumers with an income that is the same as the area’s median receive a three-year plan. The court adjusts income levels based on household size.
What Happens if the Lender Filed a Foreclosure Before the Claim?
The automatic stay stops the foreclosure completely. The consumer must continue to pay 100% of their mortgage payments through the court. Any late payment leads to a discharge. The lender has the authority to seize the property at this point.
In Georgia, chapter 13 repayment plans are enforced by the court. A trustee monitors the progression of the case based on the duration assigned. Any consumer who violates the terms of the plan forfeits their right to continue the case.
