One of the chief benefits of bankruptcy is the ability to restructure your finances under court supervision and protection. A confirmed Chapter 13 plan means that pre-bankruptcy creditors cannot sue or harass you as long as you stick with your plan. The problem is that Chapter 13 bankruptcy lasts a minimum of 36 or 60 months, depending on your income. What if you don’t want to wait that long and want out early?

You have three options for terminating a Chapter 13 case early, receiving the benefits of a bankruptcy discharge, and walking away:

Convert Your Case:

You may be able to convert your Chapter 13 case to one under Chapter 7, receive a discharge, and end your case early. This is especially useful if you have paid a secure arrearage during the bankruptcy case or otherwise cured a default. For instance, suppose you are an under-median debtor behind on your mortgage and forced into Chapter 13 because your mortgage lender refused to accept payments. If you are able to obtain a home loan modification during the repayment period, you may decide to convert your case to Chapter 7 and include the post-petition canceled mortgage debt in the bankruptcy discharge along with all other dischargeable debts. You can convert the case at any time, as long as you otherwise qualify.

Pay 100% of Your Creditors

The growing trend among appellate courts interprets the bankruptcy “applicable commitment period” as a minimum time a debtor must remain in bankruptcy. In other words, you must remain in Chapter 13 bankruptcy a minimum of 36 or 60 months. The only exception to this minimum period is if you repay all of your unsecured claims in full as provided in Section 1325(b)(4)(B) of the Bankruptcy Code.

Modify Your Plan

Some bankruptcy courts may allow an above-median debtor at the time of the case filing to modify the bankruptcy case after confirmation to reduce the time of repayment when the debtor’s income drops below the state median income level. These courts hold that the “disposable income” test, as set forth in section 1325(b) of the Bankruptcy Code does not apply to modified plans under Section 1329. A modified plan must still continue for a minimum of 36 months.

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👩‍💼 ABOUT SAEDI LAW GROUP: Founder and managing attorney Lorena Saedi started her legal career with a big law firm in Atlanta practicing corporate law and representing large corporations. Although she enjoyed the challenging legal work, she realized that she would rather be working directly with people as opposed to large corporate legal departments. After a short stint in a large bankruptcy law firm in Atlanta, Lorena founded her own firm and the rest is history.

After seeing how client’s cases were serviced at the large “bankruptcy mill” firm, Lorena decided to start her own firm and focus on provided personalized service. Since 2002, Lorena has been helping Georgia consumers get a fresh financial start and providing exceptional client service to her clients.

Over the past 22 years, Saedi Law Group has grown to a mid-sized law firm. Our goal is to continue to provide exceptional client service and ensure that our client’s Chapter 7 and Chapter 13 cases are a success. Clients work with the attorney they meet with from start to finish. If a client has any questions or problems in a case, they can immediately meet with their attorney (not a paralegal) to ensure that the matter is resolved.

So why choose Saedi Law Group to handle your bankruptcy case? We truly love what we do and we do it with passion. We value our clients and understand what they are going through. Helping clients rebuild their financial life gives us purpose. We see bankruptcy law as a positive way to use the law to help people get back on their feet financially and build a new life.

Find out more at https://georgiabankruptcylawgroup.com