Chapter 13 Bankruptcy in Georgia
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy—often called “reorganization bankruptcy” or a “wage
earner’s plan”—is designed for people who earn a steady income but have fallen
behind on debts such as mortgage payments, car loans, or taxes.Instead of wiping
out all debts immediately like Chapter 7, Chapter 13 lets you repay part of what
you owe over 3 to 5 years through a structured repayment plan approved by the court.
When you file Chapter 13 in Georgia, the court issues an automatic stay that
immediately stops foreclosures, repossessions, wage garnishments, and other
collection efforts.
Who Qualifies for Chapter 13 in Georgia?
To qualify for Chapter 13 bankruptcy, you must:
- Have regular income (from employment, self-employment, or another consistent source).
- Have unsecured debts of less than $465,275 and secured debts of less than $1,395,875 (limits adjust periodically).
- Be current on tax filings and not have filed another Chapter 13 within the last 2 years or a Chapter 7 within the last 4 years.
Chapter 13 is ideal if you earn too much to pass the Chapter 7 means test or if you want to protect assets that could be sold in a Chapter 7 case.
What Debts Can Be Repaid or Discharged?
A Georgia Chapter 13 bankruptcy plan can help you repay or eliminate many types of debt, including:
- Mortgage arrears (missed payments)
- Car loans (often reduced through “cramdowns”)
- Credit card and medical debt
- Personal loans and judgments
- Certain tax obligations
However, some debts generally cannot be discharged, including:
- Child support and alimony
- Most student loans
- Recent tax debts
- Criminal fines or restitution
How the Chapter 13 Repayment Plan Works
Your repayment plan lasts 3 years if your income is below Georgia’s median income, or 5 years if it’s above.Each month, you’ll make one payment to a courtappointed trustee, who distributes the funds to your creditors according to your plan.
Your monthly payment is based on your income, expenses, and the types of debt you owe. At the end of the plan, any remaining eligible unsecured debt is discharged—meaning you no longer owe it.
Georgia Bankruptcy Exemptions in Chapter 13
Even though you don’t liquidate assets in Chapter 13, Georgia’s exemption laws still matter. They determine how much you must repay to unsecured creditors. Under O.C.G.A. § 44-13-100, Georgia exemptions include:
- Homestead exemption: $21,500 ($43,000 for married couples filing jointly)
- Vehicle exemption: $5,000 equity in one car
- Household goods: $5,000 total (up to $300 per item)
- Wildcard exemption: $1,200 plus up to $10,000 of unused homestead
exemption - Retirement accounts and pensions: generally fully protected
The Chapter 13 Process in Georgia
Filing for Chapter 13 bankruptcy in Georgia typically takes 3 to 5 years from start to discharge. Here’s an overview of what to expect:
- Credit Counseling Course – Must be completed before filing.
- File the Bankruptcy Petition – Filed in the correct Georgia bankruptcy district (Northern, Middle, or Southern).
- Automatic Stay Begins – All collection efforts and foreclosures stop immediately.
- 341 Meeting of Creditors – A short hearing (usually by Zoom) where the trustee reviews your case.
- Confirmation Hearing – The judge reviews and approves your repayment plan.
- Monthly Payments – You make scheduled payments to the trustee.
- Discharge – After completing the plan, remaining eligible debts are wiped out.
Is Chapter 13 Right for You?
Chapter 13 bankruptcy may be right for you if:
- You want to stop a foreclosure and keep your home.
- You have steady income but need time to catch up on missed payments.
- You have non-exempt assets you would lose in Chapter 7.
- You want to consolidate debts into one manageable payment.
If your primary goal is to protect property or repay secured debts over time, Chapter 13 may be the best path to financial stability.
Georgia Bankruptcy Courts
Chapter 13 cases in Georgia are filed in one of three federal bankruptcy districts:
- Northern District of Georgia – Atlanta, Gainesville, Newnan, Rome
- Middle District of Georgia – Macon, Columbus, Athens, Valdosta
- Southern District of Georgia – Savannah, Augusta, Brunswick, Dublin, Statesboro, Waycross
Frequently Asked Questions About Chapter 13 Bankruptcy in Georgia
How much does it cost to file Chapter 13 in Georgia?
The current filing fee is $313. Attorney’s fees are often included in your repayment plan and paid over time.
Can Chapter 13 stop foreclosure in Georgia?
Yes. Filing Chapter 13 triggers an automatic stay that immediately stops foreclosure and allows you to catch up on missed mortgage payments through your plan.
How long does Chapter 13 bankruptcy take in Georgia?
Plans typically last 3 to 5 years, depending on your income and type of debt.
Will I lose my car or home in Chapter 13?
Usually not. Chapter 13 helps you keep property by catching up on missed payments and protecting your assets through exemptions.
Can I pay off Chapter 13 early?
In some cases, yes—if you repay all required debts and administrative costs. However, early payoff requires court approval.
How does Chapter 13 affect my credit?
Chapter 13 remains on your credit report for 7 years, but your credit can start improving even while you’re in the plan as you make consistent payments.