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What Consumers Should Know About Chapter 7/13 Bankruptcy in Lithonia, GA

In Georgia, consumers file for bankruptcy to eliminate debt quickly and to avoid foreclosure. Consumers who are considering bankruptcy need a clear review of their options to determine which option meets their needs. The following are details about chapter 7/13 bankruptcy in Lithonia, GA that consumers should know.

What Is the Difference Between Chapter 7 and 13?

Chapter 13 bankruptcy provides a repayment plan. The consumer makes a monthly payment to pay off their debts according to this plan. They must continue to make these payments in a timely manner to avoid a discharge.


In chapter 7 bankruptcy, the consumer provides deeds and titles for their assets. The assets are sold through an auction to accumulate proceeds, which are generated to settle the consumer’s debts. The trustee assigned to the case by the court distributes these proceeds to creditors.

How Long Does the Automatic Stay Last?

The automatic stay for chapter 13 will last between three and five years, while that for chapter 7 can last between three and six months. The automatic stay prevents a lender from foreclosing on real estate property. This could be the consumer’s home or business property.

Who Is Eligible for These Chapters?

Consumers with an income that is greater than the local median are eligible to file either chapter. However, any consumer who has an income that is lower than this median can file chapter 7 only. They must provide income statements to prove eligibility. These statements must reflect earnings for the last six months.

Are There Any Other Prerequisites for Bankruptcy?

Yes, all consumers who want to file for bankruptcy must complete a credit counseling program. The program must be state approved and provide a certificate of completion for the consumer. It shows consumers how to manage their finances more proactively.

In Georgia, consumers must follow all requirements for their preferred chapter of bankruptcy. These requirements may include income statements, strict provisions, and credit-counseling. The consumer must also provide a full list of their debts for further evaluation. Consumers who want to file chapter 7/13 bankruptcy in Lithonia, GA must visit for more info or to schedule an appointment right now.

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