Georgia Bankruptcy Information
Bankruptcy attorneys in Georgia can help stop harassing creditors. See if you qualify to file Chapter 13 bankruptcy or Chapter 7 bankruptcy in Georgia.
Filing Chapter 13 Bankruptcy in Georgia
If you are unable to file Chapter 7 Bankruptcy or if you have substantial assets you would like to keep, Chapter 13 Bankruptcy may be an option for you or your family. Chapter 13 is not a liquidation bankruptcy, but will allow you to keep your assets by restructuring your debt under a three to five year bankruptcy repayment schedule. Under the repayment schedule, you will repay a portion or all of your debt, but at the end of the schedule, if you complete the debt repayment plan, your qualifying debt will be discharged.
If you choose to file Chapter 13 Bankruptcy, there are certain assets that may be excluded from the bankruptcy process. Most bankruptcy laws are constructed at the federal level including federal bankruptcy exemptions, but unlike most bankruptcy laws, many states have created their own list of state bankruptcy exemptions which may allow you to \"opt out\" of the federal choices. In the state of Georgia, federal exemptions are not allowed and you must choose the Georgia State Exemption list. Prior to filing bankruptcy in Georgia, it is important to discuss your assets and which ones may be exempt with a Georgia Bankruptcy Attorney.
Filing Chapter 7 Bankruptcy In Georgia
- Chapter 7 Bankruptcy is the easiest, cheapest and quickest bankruptcy process. If you are an individual, partnership, married couple or corporation you may be able to file Chapter 7 Bankruptcy. Chapter 7 Bankruptcy is a "liquidation" bankruptcy and your assets will be sold to pay your personal debt. After you file Chapter 7 Bankruptcy, the Georgia bankruptcy court will assign a trustee who will sell your non-exempt assets and use the proceeds from the sale to pay your creditors. Chapter 7 Bankruptcy usually takes four to six months to complete and at the end of this time period, qualifying unsecured debt will be discharged.
Current bankruptcy laws have made it more difficult to qualify for Chapter 7 Bankruptcy. Changes in the bankruptcy law now require individuals to take a credit counseling course prior to filing bankruptcy and a financial management course. Many individuals who may at one time have qualified to file Chapter 7 Bankruptcy will now have to file Chapter 13 Bankruptcy and repay a portion or all of their debt.
Means Testing in Georgia
To determine if you can file Chapter 7 Bankruptcy, testing will be done to review your income. If your income is below the median income levels for the state of Georgia, for a family of your size, you may qualify for Chapter 7 Bankruptcy. If your median income is above the Georgia median income levels, more \"means testing\" will have to be done.
In general, means testing will analyze your expenses including your house and car payments, school expenses up to a threshold amount and taxes you owe. If after the testing is complete you can afford to pay at least $6,000 or $100 per month in debt repayment for the next five years you may be forced to file Chapter 13 Bankruptcy.
The state median income list provided by the United States Trustee program will help you determine if your income is below the median income. In the state of Georgia, beginning March 15, 2009, the median income level for a single wage earner was $40,760. For a family of two it was $54,054 and for a family of three it was $61,959. For a family of four it was $71,554.