Chapter 13 Bankruptcy in Georgia
Chapter 13 bankruptcy lets Georgia filers keep all their property while repaying debts through a 3- to 5-year court-approved plan. It is the primary tool for stopping foreclosure and catching up on mortgage arrears, and it can discharge some debts that Chapter 7 cannot.
By Find Local Law Editorial Team · Last reviewed: May 26, 2026
Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.
This is general information, not legal advice. A Georgia bankruptcy attorney can help.
How Chapter 13 Works
Chapter 13 bankruptcy — sometimes called a “wage earner’s plan” — is a reorganization process that lets you keep all your property while catching up on debts over time. Rather than liquidating assets, you propose a repayment plan lasting three to five years. A bankruptcy trustee collects your monthly plan payments and distributes them to creditors according to the priorities set by bankruptcy law. When you complete the plan, remaining eligible debts are discharged.
Chapter 13 is more demanding than Chapter 7 — it requires a steady income and years of disciplined monthly payments — but it offers protections and flexibility that Chapter 7 simply cannot provide.
Who Qualifies for Chapter 13
To file Chapter 13, you must have regular income sufficient to fund a repayment plan and your debts must fall within the eligibility limits under 11 U.S.C. § 109(e): unsecured debts below approximately $465,275 and secured debts below approximately $1,395,875. These thresholds adjust periodically. There is no means test for Chapter 13 eligibility, though the court will scrutinize whether your income can realistically support the proposed plan.
You must also have filed any required income tax returns for the past four years before the confirmation hearing (11 U.S.C. § 1308).
The Repayment Plan
Within 14 days of filing, you submit a proposed repayment plan to the court under 11 U.S.C. § 1321. The plan must:
- Pay all priority debts in full (including domestic support arrears, recent income taxes, and trustee and attorney fees)
- Pay secured creditors at least the value of their collateral (or cure mortgage arrears over the life of the plan)
- Pay unsecured creditors at least what they would have received in a Chapter 7 liquidation of your non-exempt assets
A confirmation hearing is held, typically 45 to 60 days after filing. The judge, trustee, and any objecting creditors review the plan. If the court confirms it, you make monthly payments to the trustee for the duration — three years if your income is below Georgia’s median, up to five years if it is above.
Why Chapter 13 Is Especially Valuable in Georgia
Saving a home from foreclosure is the single most common reason Georgia filers choose Chapter 13. The automatic stay immediately stops a foreclosure sale, and the plan lets you cure mortgage arrears over three to five years while resuming regular monthly payments. As long as you complete the plan and stay current on your mortgage going forward, you keep your home.
Protecting non-exempt equity is another major advantage. If you have significant equity in a home or other assets that exceeds Georgia’s exemption limits under O.C.G.A. § 44-13-100, Chapter 7 would put that equity at risk. Chapter 13 lets you keep everything by paying unsecured creditors the equivalent value through your plan instead.
Handling non-dischargeable debts is a third use case. Chapter 13 lets you spread out certain debts — like back taxes and domestic support arrears — over the life of the plan in a manageable way, even if those debts cannot ultimately be discharged.
Discharge at Completion
After you make every required plan payment, the court enters a Chapter 13 discharge under 11 U.S.C. § 1328. This discharge is broader than Chapter 7’s — it covers some debts that Chapter 7 cannot discharge, such as certain property settlement debts from divorce. Student loans, domestic support obligations, and debts from fraud remain non-dischargeable even in Chapter 13.
A Chapter 13 bankruptcy remains on your credit report for 7 years from the filing date — three years less than a Chapter 7.
Find a Georgia bankruptcy attorney who can model whether a Chapter 13 plan is feasible for your income, debts, and goals.
Connect with a local attorney
Tell us about your situation and we'll match you with a local California attorney who handles matters like yours. Free, no obligation.
Start your free intakeFrequently asked questions
- Can Chapter 13 stop my foreclosure in Georgia?
- Yes. Filing Chapter 13 triggers the automatic stay (11 U.S.C. § 362), which immediately halts a foreclosure in progress — even on the day of the sale. Your repayment plan can then spread the overdue mortgage payments (arrears) across three to five years while you resume making current payments. As long as you complete the plan, you keep your home.
- What are the debt limits for Chapter 13 eligibility?
- Under 11 U.S.C. § 109(e), your unsecured debts must be below approximately $465,275 and your secured debts below approximately $1,395,875 to file Chapter 13. These amounts adjust periodically based on a cost-of-living formula. If your debts exceed these limits, Chapter 11 is an alternative, though significantly more complex and expensive.
- What happens if I can't complete my Chapter 13 plan?
- If you fall behind on plan payments, the trustee or a creditor can move to dismiss your case or convert it to Chapter 7. However, the court may grant a hardship discharge in limited circumstances — if your failure to complete the plan was caused by circumstances beyond your control, the modification is not practicable, and creditors have already received at least as much as they would have in a Chapter 7 liquidation (11 U.S.C. § 1328(b)).
Sources
Related guides
- Chapter 7 Bankruptcy in Georgia Chapter 7 is the fastest form of personal bankruptcy — most Georgia filers receive a discharge of eligible debts within about four months of filing. You must pass the means test to qualify, and Georgia's opt-out exemptions under O.C.G.A. § 44-13-100 determine what property you keep.
- Georgia Bankruptcy Exemptions Georgia is an opt-out state, meaning filers must use Georgia's state exemption schedule under O.C.G.A. § 44-13-100 instead of the federal exemption list. Exemptions protect specific property from the bankruptcy trustee in a Chapter 7 case and determine how much unsecured creditors receive in a Chapter 13 plan.
- How Bankruptcy Works in Georgia Bankruptcy in Georgia is a federal court process governed by Title 11 of the U.S. Code. Individual filers choose between Chapter 7 liquidation and Chapter 13 reorganization based on their income, assets, and goals. All cases are filed in one of Georgia's three federal bankruptcy districts, and 341 meetings are now held via Zoom.
- Non-Dischargeable Debts in Bankruptcy Bankruptcy discharge eliminates most debts, but 11 U.S.C. § 523 lists specific categories that survive — including student loans, recent income taxes, domestic support obligations, and debts from fraud. Chapter 13 can discharge a few categories that Chapter 7 cannot.
- The Automatic Stay in Bankruptcy The automatic stay under 11 U.S.C. § 362 takes effect the instant a bankruptcy petition is filed, immediately halting most collection actions including foreclosure, wage garnishment, collection calls, and pending lawsuits. It is one of the most powerful protections in bankruptcy law.