Atlanta Bankruptcy Attorneys, Clark & Washington, Explain Who Can File for Chapter 13

    NORCROSS, GA, August 05, 2013 /24-7PressRelease/ -- The Atlanta bankruptcy lawyers, Clark & Washington, would like to take a moment to talk about who can file for a Chapter 13 bankruptcies. The three types of bankruptcies are 7, 11, and 13. The latter is restricted to individuals only, as commercial businesses are required to file for Chapter 11. However, sole proprietors do have the option to file under 13, as they are legally acting as individuals. The Atlanta bankruptcy attorneys say the main difference between 7 and 13 are the end results. With Chapter 7 filings, the purpose is to liquefy one's assets in exchange for the discharging of one's debt. The court in effect takes your property as a means of paying back the debtors you owe. The situation is a bit different with Chapter 13, note the bankruptcy lawyers in Atlanta. In these instances, the goal is to set up a structured repayment plan with the court. If the request is granted, you will be able to keep your assets while you pay back your debtors over a set period of time.

Depending on your financial situation, it may be a wiser option to file for 13, especially if you want to keep your valuables. The Atlanta bankruptcy attorneys state that certain requirements must be met in order for one to be eligible for a Chapter 13 filing, however. These include having enough income to make the payments to and to pay off your debts in full. The court will determine this by assessing your debt to income after your monthly living and secured debt expenses have been deducted. As well, the bankruptcy attorneys in Atlanta also note that individuals with total secured debts exceeding $1,149,525 and/or unsecured debts exceeding $383,175 are deemed automatically ineligible and must file for Chapter 7 instead. Such individuals are deemed too much of a risk concerning the repayment qualifications. Lastly, you must show the court proof that you are up to date on your income tax filings.

Clark & Washington are a top Atlanta bankruptcy law firm. To speak with an attorney today, please visit http://www.cw13.com.

About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter 7 and chapter 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.cw13.com.

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