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Filing Bankruptcy in Georgia: A Comprehensive Guide
Filing for bankruptcy can be a daunting process, especially if you're unfamiliar with the laws specific to your state. In Georgia, understanding the nuances of the bankruptcy process can help you make informed decisions about your financial future.
Types of Bankruptcy Available
In Georgia, individuals primarily file for Chapter 7 or Chapter 13 bankruptcy. Both have distinct processes and outcomes.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, often referred to as 'liquidation bankruptcy,' allows individuals to discharge most of their debts. This is generally suitable for those who have limited income and few assets.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also known as a 'wage earner’s plan,' involves a repayment plan that lasts three to five years. This option is ideal for individuals with a steady income who wish to keep their assets.
For more information on the limits regarding debt when considering this option, you can check the chapter 13 bankruptcy debt limits.
Eligibility Criteria
Understanding eligibility is crucial before proceeding with a bankruptcy filing.
Chapter 7 Eligibility
- Must pass the means test, which compares your income to the state median.
- Must not have filed a Chapter 7 bankruptcy within the last eight years.
Chapter 13 Eligibility
- Must have a regular income to adhere to the repayment plan.
- Debt must not exceed the specified limits for secured and unsecured debts.
Understanding your disposable income is critical when planning a Chapter 13 bankruptcy. For detailed guidance, visit chapter 13 bankruptcy disposable income.
Steps to File Bankruptcy in Georgia
- Gather Financial Documents: Assemble all relevant financial information, including income statements, asset details, and debt records.
- Credit Counseling: Complete a credit counseling course from an approved agency within six months before filing.
- File a Petition: Submit a bankruptcy petition along with schedules of assets, liabilities, and income to the bankruptcy court.
- Attend a 341 Meeting: This is a meeting of creditors where they can ask questions about your financial situation.
- Complete a Debtor Education Course: Post-filing, you must complete this course to receive a discharge of debts.
FAQs about Filing Bankruptcy in Georgia
What assets can I keep when filing Chapter 7 in Georgia?
Georgia allows you to keep certain exempt property, such as equity in your home, a vehicle up to a certain value, and personal belongings.
How long does Chapter 13 bankruptcy stay on my credit report?
Chapter 13 bankruptcy can remain on your credit report for up to seven years from the date of filing.
Can I convert my Chapter 13 to a Chapter 7?
Yes, you can convert a Chapter 13 case to Chapter 7, but you must qualify under the Chapter 7 eligibility criteria.
Individuals are required to file, with the bankruptcy petition, a separate Statement of Social Security Number(s), Official Form B 121, in which their full ...
You can file for bankruptcy in Georgia after living there for over 180 days. However, you must live in Georgia for at least 730 days before filing. Otherwise, ...
It now costs $306 to file for bankruptcy under chapter 7 and $281 to file for bankruptcy under chapter 13, whether for one person or a married couple.
