Save Your Home and Keep Your Property
Chapter 13 bankruptcy attorneys in Columbus, GA
If you are behind on your mortgage and facing foreclosure, or if you are about to lose your car to repossession, Chapter 13 bankruptcy might be exactly what you need. Maybe you have fallen a few months behind on payments because of a job loss, medical emergency, or divorce, and now the creditor is threatening to take your home or vehicle. Perhaps you tried to work out a payment arrangement, but the lender said no. You might feel trapped, wondering how you can possibly catch up when you are already struggling to pay current bills. Chapter 13 bankruptcy gives you a way out. At Arey & Cross, P.C., we help people in Columbus, GA use Chapter 13 to stop foreclosure, stop repossession, and create a court-approved repayment plan that lets them catch up on what they owe over three to five years. Unlike Chapter 7 Bankruptcy, which wipes out debts quickly but might require you to surrender property, Chapter 13 lets you keep everything you own as long as you stick to the plan. If you have regular income and you want to save your home or car, Chapter 13 can give you the breathing room and legal protection you need to get back on your feet without losing what matters most.
KEY TAKEAWAYS
- Chapter 13 bankruptcy lets you catch up on mortgage and car payments over three to five years while keeping your property
- Filing Chapter 13 immediately stops foreclosure sales and repossessions through the automatic stay
- You can keep all your property in Chapter 13, even if it would not be protected in Chapter 7
- Chapter 13 has no income limit, making it a good option if your income is too high to qualify for Chapter 7
- Your monthly payment is based on your disposable income after necessary living expenses are deducted.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is sometimes called the “wage earner’s plan” because it is designed for people with regular income who need time to catch up on debts. Instead of wiping out your debts right away like Chapter 7 Bankruptcy, Chapter 13 lets you propose a repayment plan that lasts three to five years. During that time, you make monthly payments to a bankruptcy trustee, who then distributes the money to your creditors according to the plan.
The big advantage of Chapter 13 is that you get to keep all your property. Your home, your car, your personal belongings, everything stays with you as long as you make your plan payments and stay current on ongoing obligations like your mortgage and car loan. Chapter 13 is particularly powerful if you are behind on secured debts and need a structured way to catch up without losing the property.
No Income Ceiling
Unlike Chapter 7 Bankruptcy, which has income limits based on the means test, Chapter 13 has no income ceiling. You do need regular income to qualify, because you are committing to making monthly payments for years, but your income can be above the Georgia median and you can still file Chapter 13. In fact, if your income is too high to pass the Chapter 7 means test, Chapter 13 might be your best or only bankruptcy option.
Automatic Stay Protection
Just like in Chapter 7, the moment you file Chapter 13, the automatic stay goes into effect and stops most collection activity. That means creditors must stop calling you, stop suing you, and stop trying to take your property. If a foreclosure sale is scheduled for next week, filing Chapter 13 can stop it. If your wages are being garnished, the garnishment usually stops. The automatic stay gives you immediate relief and the time you need to work out your plan.
How Chapter 13 Fits With Other Options
Chapter 13 is not right for everyone. If you have little income, few assets, and mostly unsecured debt, Chapter 7 Bankruptcy might be faster and simpler. But if you are trying to save your home, catch up on your car, or protect property that would not be exempt in Chapter 7, Chapter 13 can be the better choice. Our Bankruptcy overview page explains all your options in more detail so you can see the bigger picture.
How Chapter 13 Stops Foreclosure in Georgia
Georgia uses a non-judicial foreclosure process, which means lenders do not have to go through court to foreclose on your home. Once you fall behind on your mortgage, the lender can move relatively quickly to schedule a foreclosure sale. Many people do not realize how fast this process can move until they get a notice that their home will be sold in a matter of weeks.
The Power of the Automatic Stay
When you file Chapter 13, the automatic stay stops the foreclosure sale immediately. Even if the sale is scheduled for tomorrow, filing bankruptcy today can stop it. The lender must halt the foreclosure process and cannot move forward unless they get permission from the bankruptcy court, which is rare in a Chapter 13 case where you are trying to catch up on payments.
Catching Up on Mortgage Arrears
Chapter 13 gives you three to five years to catch up on the mortgage payments you missed. Let’s say you are $12,000 behind on your mortgage. Instead of having to come up with $12,000 all at once, which is impossible for most people, you can spread that $12,000 out over the length of your plan. If your plan is five years (60 months), that is $200 per month toward the arrears, plus your regular monthly mortgage payment going forward.
You do have to stay current on your regular mortgage payment while you are in Chapter 13. The plan catches you up on what you owe from the past, but you cannot fall behind on new payments going forward. If you do, the lender can ask the court for permission to proceed with foreclosure.
Real-World Impact
For homeowners in Columbus facing foreclosure, Chapter 13 can be the difference between keeping their home and losing it. We have worked with clients who were days away from a foreclosure sale and were able to stop it by filing Chapter 13. The relief people feel when they realize their home is safe and they have a realistic plan to catch up is powerful.
If you are behind on your mortgage and worried about foreclosure, time is important. The sooner you talk to us, the more options you have.
Who Should File Chapter 13?
Chapter 13 is not for everyone, but it is a great fit for certain situations. You should consider Chapter 13 if any of these apply to you.
You Are Behind on Your Mortgage or Car Payments
If you have fallen behind on your house or car and you want to keep the property, Chapter 13 gives you a way to catch up over time. This is the most common reason people choose Chapter 13 over Chapter 7 Bankruptcy.
You Have Regular Income
Chapter 13 requires regular income because you are committing to make monthly payments for years. That income can come from a job, self-employment, Social Security, disability, or other steady sources. You do not have to be wealthy, but you do need enough income to cover your necessary living expenses and still have money left over to pay into the plan.
Your Income Is Too High for Chapter 7
If you do not pass the means test for Chapter 7 Bankruptcy because your income is above the Georgia median, Chapter 13 might be your only bankruptcy option. Chapter 13 does not have the same income restrictions.
You Have Non-Exempt Assets You Want to Protect
In Chapter 7, if you have property that is not protected by Georgia’s exemptions, the trustee can sell it to pay your creditors. In Chapter 13, you keep all your property regardless of exemptions, but the value of non-exempt property affects how much you have to pay into your plan. If you own valuable property outright and you want to keep it, Chapter 13 can protect it.
You Want to Pay Your Debts Over Time
Some people prefer the idea of repaying what they owe rather than having debts discharged immediately. Chapter 13 gives you a structured way to do that under court protection, so creditors cannot sue you or harass you while you are making good-faith efforts to pay.
If you are not sure whether Chapter 13 or Chapter 7 Bankruptcy is better for your situation, we can walk through both options with you during your free consultation and help you decide based on your income, your debts, and your goals.
How Chapter 13 Repayment Plans Work
Your Chapter 13 repayment plan is the heart of your case. Understanding how the plan works and how your payment is calculated can take away a lot of the mystery and anxiety.
Plan Length: 3 Years or 5 Years
If your household income is below the Georgia median income for a household of your size, your plan can be three years (36 months). If your income is above the median, your plan must be five years (60 months). In some cases, even if you are below median, you might choose a five-year plan to spread out payments and make them more affordable.
Calculating Your Monthly Payment
Your monthly Chapter 13 payment is based on your disposable income. Disposable income is what is left over after you subtract necessary living expenses from your gross income. Georgia courts use IRS standards and local cost-of-living data to determine what counts as reasonable and necessary expenses, including housing, utilities, food, transportation, clothing, medical costs, childcare, and insurance.
Once your disposable income is calculated, that amount goes toward your plan payment each month. The court wants to see that you are dedicating all your disposable income to the plan, not spending it on luxuries or non-essential items.
How Payments Are Distributed
Not all debts are treated the same in Chapter 13. Your plan payment is distributed in a specific order.
Priority debts must be paid in full during your plan. These include things like recent income taxes, child support arrears, and alimony. If you owe $6,000 in back taxes, your plan has to pay that $6,000 over the three to five years.
Secured debts like your mortgage and car loan are handled by catching up on arrears through the plan while you stay current on ongoing payments. If you are $10,000 behind on your mortgage, that $10,000 is spread out over your plan. Some secured debts, like car loans, can sometimes be restructured or “crammed down” depending on how old the loan is and the value of the vehicle.
Unsecured debts like credit cards, medical bills, and personal loans get whatever money is left over after priority and secured debts are paid. In many Chapter 13 cases, unsecured creditors only receive a percentage of what they are owed, sometimes as little as a few cents on the dollar. At the end of your plan, any remaining unsecured debt is discharged.
What Happens If Your Circumstances Change?
Life does not stop during your three to five year plan. You might lose your job, get a raise, have a medical emergency, or face other unexpected changes. If your financial situation changes significantly, you can ask the court to modify your plan. You will need to file a motion, provide documentation, and attend a hearing, but plans can be adjusted if circumstances truly change.
If you fall behind on your plan payments, the trustee or a creditor can file a motion to dismiss your case. That is why it is so important to stay current and to communicate with us if you are struggling. Sometimes we can work out a solution before things get to the point of dismissal.
What Property Can You Keep in Chapter 13?
One of the biggest advantages of Chapter 13 is that you keep all your property, period. Unlike Chapter 7 Bankruptcy, where non-exempt property can be taken and sold by the trustee, Chapter 13 does not involve liquidating your assets.
Exemptions Still Matter
Even though you keep everything in Chapter 13, Georgia’s exemptions still play a role. The value of your non-exempt property affects how much you have to pay into your plan. Creditors are entitled to receive at least as much as they would have received if you had filed Chapter 7 and your non-exempt property had been sold. So if you have $10,000 in non-exempt assets, your Chapter 13 plan generally needs to pay unsecured creditors at least $10,000 over the life of the plan.
Georgia Exemptions Recap
Georgia exemptions include up to $21,500 in home equity ($43,000 for married couples filing jointly), up to $5,000 in vehicle equity, up to $5,000 in household goods, a wildcard exemption of $1,200, and up to $10,000 of unused homestead exemption that can be applied to any property. Retirement accounts are also protected. Most people’s property fits within these exemptions, so the non-exempt value is often low or zero.
Protecting Your Home and Car
Chapter 13 is especially good for people who have equity in their home or car that exceeds the exemption limits. Instead of losing the property in Chapter 7, you keep it in Chapter 13 and pay the non-exempt value to creditors over time through your plan. You get to keep your home, your car, and everything else, as long as you stick to the plan.
The Chapter 13 Process Step-by-Step
Filing and completing a Chapter 13 case is more involved than Chapter 7 Bankruptcy because it lasts years instead of months, but the process follows a clear sequence.
Step 1 – Pre-Filing Credit Counseling
Just like in Chapter 7, you must complete credit counseling from an approved provider within 180 days before filing. This is done online or by phone and takes about an hour. You will get a certificate that must be filed with your case.
Step 2 – Gathering Financial Documents
We will help you gather pay stubs, tax returns, bank statements, a list of your debts, a list of your assets, and information about your monthly expenses. Accurate and complete information is critical in Chapter 13 because your plan is based on these numbers.
Step 3 – Filing Your Petition and Proposing Your Plan
We prepare and file your bankruptcy petition and your proposed Chapter 13 plan with the U.S. Bankruptcy Court that covers Columbus, GA. As soon as the case is filed, the automatic stay goes into effect and creditors must stop collection efforts. You will also start making your plan payments to the trustee right away, even before the plan is confirmed.
Step 4 – The 341 Meeting of Creditors
About three to four weeks after filing, you will attend the 341 meeting with the Chapter 13 trustee. This is similar to the 341 meeting in Chapter 7. The trustee will ask you questions under oath about your finances and your proposed plan. Creditors can attend, but they rarely do. The meeting is usually short. We attend with you.
Step 5 – The Confirmation Hearing
About 60 to 80 days after you file, the court will hold a confirmation hearing. This is when the bankruptcy judge decides whether to approve your repayment plan. The trustee and your creditors can object to the plan if they think it does not comply with the law or does not pay them what they are entitled to receive. Most issues are worked out before the hearing, and you often do not even need to attend unless there is a dispute. If the plan is confirmed, it becomes binding and you continue making payments according to the plan.
Step 6 – Making Your Monthly Payments
Once your plan is confirmed, you make your monthly payment to the trustee every month for three to five years. In many districts, including Georgia, payments are made through automatic payroll deduction, which helps ensure you do not miss payments. The trustee distributes the money to your creditors according to the plan.
Step 7 – Debtor Education Course
Before you complete your plan, you must finish a debtor education course, just like in Chapter 7. This course covers budgeting and financial management.
Step 8 – Completing Your Plan and Receiving Your Discharge
Once you make all your plan payments and complete the debtor education course, the court will issue a discharge order that wipes out any remaining dischargeable unsecured debts. You have successfully completed your Chapter 13 case, and you get to keep all your property.
Throughout the entire three to five years, we are available to answer questions, help with plan modifications if needed, and make sure you stay on track. Our goal is to guide you all the way to discharge.
Chapter 13 vs. Chapter 7 in Georgia
Both Chapter 7 Bankruptcy and Chapter 13 offer relief, but they work in very different ways. Choosing the right one depends on your income, your debts, and what you are trying to accomplish.
When Chapter 13 Is the Better Choice
Chapter 13 makes more sense if:
- You are behind on your mortgage or car payments and want to catch up over time while keeping the property
- Your income is too high to qualify for Chapter 7 Bankruptcy under the means test
- You have non-exempt property you want to protect
- You have priority debts like back taxes or child support that need to be paid
- You prefer a structured repayment plan over immediate debt discharge
When Chapter 7 Might Be Better
Chapter 7 Bankruptcy is often a better fit if:
- You have little to no non-exempt property
- Your income is below or close to the Georgia median
- Most of your debt is unsecured (credit cards, medical bills)
- You want quick relief and can complete the process in four to six months
- You are current on your mortgage and car payments, or you are willing to surrender property you cannot afford
Our Chapter 7 Bankruptcy page goes into more detail about how that option works. During your consultation, we will look at your specific numbers and help you understand which path makes the most sense for you.
Life During and After Chapter 13
A Chapter 13 case lasts three to five years, so understanding what to expect during that time is important.
Living on a Budget
While you are in Chapter 13, you are expected to live on a budget and dedicate your disposable income to your plan payment. You cannot take on new debt without permission from the trustee or the court. Major purchases, like buying a car or refinancing your home, require approval. The idea is that you are focusing on paying off your plan and getting back on solid financial ground, not taking on more obligations.
That does not mean you cannot have a normal life. You can work, take care of your family, and handle your day-to-day expenses. You just cannot make big financial moves without going through the proper process.
Credit Impact
Chapter 13 bankruptcy stays on your credit report for seven years from the date you file. Your credit score will drop, but if you were already behind on payments and dealing with collections, your credit may already be damaged. The good news is that many people start rebuilding credit while they are still in their Chapter 13 plan by making their plan payments on time and staying current on ongoing obligations like rent or mortgages.
After you complete your plan and receive your discharge, lenders see that you successfully finished a repayment plan, which can sometimes be viewed more favorably than a Chapter 7 discharge. You can qualify for secured credit cards, car loans, and eventually mortgages again, usually within a few years of completing your plan.
Employment and Privacy
Your employer will not know you filed Chapter 13 unless your plan payments are made through payroll deduction, which is common in Georgia. Even if they do know, federal law prohibits employers from discriminating against you because you filed bankruptcy. Your job should not be affected.
Long-Term Benefits
Yes, Chapter 13 requires years of commitment and discipline. But the long-term benefits can be life-changing. You get to keep your home. You get to keep your car. You catch up on debts that are drowning you. You eliminate or reduce unsecured debts. And at the end of the plan, you have a fresh start without the crushing weight of unmanageable debt.
Many of our clients tell us that the structure and protection of Chapter 13 gave them hope and a path forward when they felt completely stuck.
Common Chapter 13 Questions And Concerns
Q: How much does Chapter 13 cost in Columbus, GA?
A: Chapter 13 has a court filing fee, and attorney fees are typically paid through your Chapter 13 plan rather than upfront. This makes Chapter 13 more accessible because you do not need to come up with a large amount of money before filing. During your free consultation, we will explain all costs and how they are handled in your plan.
Q: How long does Chapter 13 take in Georgia?
A: Chapter 13 plans last three to five years depending on your income. If your household income is below the Georgia median, your plan can be three years. If your income is above median, your plan must be five years. After you complete all your plan payments, you receive your discharge.
Q: Will Chapter 13 stop foreclosure on my house?
A: Yes. Filing Chapter 13 immediately stops foreclosure through the automatic stay. Even if a foreclosure sale is scheduled, filing bankruptcy halts the sale. Chapter 13 then gives you three to five years to catch up on the mortgage payments you missed while you stay current on your ongoing mortgage payments.
Q: Can I keep my car in Chapter 13?
A: Yes. Chapter 13 lets you keep all your property, including your car. If you are behind on car payments, the plan gives you time to catch up. If you stay current on your plan and your ongoing car payments, you keep the vehicle.
Q: What happens if I miss a Chapter 13 payment?
A: Missing a plan payment is serious. If you fall behind, the trustee or a creditor can file a motion to dismiss your case. If your case is dismissed, you lose the protection of the automatic stay and creditors can resume collection efforts. If you are struggling to make payments, contact us right away so we can explore options like modifying your plan.
Q: Can I pay off Chapter 13 early?
A: In most cases, yes, but you generally have to pay the full amount that was supposed to be paid through the plan. You cannot just pay what you have paid so far and call it done. Early payoff can be complicated, so it is important to talk to us before attempting it.
Q: Do I qualify for Chapter 13 bankruptcy?
A: To qualify for Chapter 13, you need regular income and your debts must be below certain limits (currently over $2 million total for most people). There is no income ceiling, so even high earners can file Chapter 13. During your free consultation, we will review your income, debts, and goals to determine if you qualify.
Q: Can I modify my Chapter 13 plan?
A: Yes. If your financial situation changes significantly, such as losing your job, getting a pay cut, or facing unexpected medical expenses, you can ask the court to modify your plan. You will need to file a motion, provide documentation, and attend a hearing, but plans can be adjusted when circumstances change.
Protect What Matters Most
If you are facing foreclosure, repossession, or overwhelming debt, you do not have to face it alone. At Arey & Cross, P.C., we have helped countless people in Columbus, GA use Chapter 13 bankruptcy to save their homes, keep their cars, and create manageable repayment plans that actually work.
We offer a free initial consultation where we will review your situation, explain how Chapter 13 works, calculate what your plan payment might be, and help you understand whether Chapter 13 is the right choice for you. There is no pressure and no judgment, just honest guidance from attorneys who care about helping you protect what you have worked hard to build.
Time matters, especially if foreclosure or repossession is looming. Contact Arey & Cross, P.C. today and let us help you take control of your financial future.