Chapter 7 bankruptcy is a kind of bankruptcy that is allowed in the state of Georgia. This type of bankruptcy allows an individual to get rid of unsecured debt through the courts. Not everyone will qualify for Chapter 7 in Georgia. Because it wipes out most debt, it is important to make sure that people looking to file in this manner qualify for the program, go through the right steps and follow through with settling the rest of their debt. The first step is to make sure that you qualify.
Do I Qualify?
To file for bankruptcy in Georgia, it is necessary to make sure that you can pass the means test. This will consider the amount that you earn and the amount of your expenses. This is done to discover your ability to repay your debts. Your ability to file for Chapter 7 will also be determined by how much money you make. Those who make more than the Georgia median income level will have to file for a Chapter 13 instead. Other factors which will be looked at to determine your ability to file for a Chapter 7 in Georgia include the amount of time which has passed since you last has a Chapter 7 or Chapter 13 discharged, history of attempting to defraud bankruptcy courts or creditors, and whether you are willing to go to credit counseling.
How Do I File?
Filing for Chapter 7 bankruptcy in Georgia starts with a good attorney. From there, you will have to go to credit counseling. Then you may move forward with filing in a bankruptcy court. You will be charged $299 and you will have to provide all pertinent information regarding income, debt and expenses. You will also be required to provide all information about holdings including savings accounts and more.
What Protection Am I Afforded?
The great thing about Chapter 7 in Georgia is that you will be protected from your creditors. This means that they will not be able to pursue collecting debt from you. This is called an automatic stay. Any liens, garnishments or phone calls will be halted during the proceedings. They may not resume unless your case is dismissed from the bankruptcy court.
What Happens Next?
When you file for Chapter 7 in Georgia, you will be appointed a Trustee to your case. They will review to make sure you are filing the proper documents. They will also determine if it is feasible to sell off any of your property to settle debts. You will also be responsible to go to a creditors meeting. In most cases this is the only time you will actually go to court. This is where you will meet with the Trustee and any creditors. Any non-exempt property will be revealed and you will be expected either forfeit the property or produce the money it is worth.
What Will Be Discharged?
Under the rules of Chapter 7 bankruptcy in Georgia, you will be allowed to discharge any unsecured debt and some secured debt which is considered to be exempt by the Trustee. The discharge will happen a few months after the meeting of the creditors. Loans like car loans and home loans which remain after the discharge will be because you worked out a new contract with your creditor.
Related Posts
- Georgia Chapter 7 Bankruptcy Process Overview and Highlights
- When Filing Chapter 7 Bankruptcy Makes Sense
- Who Can File for Chapter 7 in Georgia?
- Debts That Can Remain After Chapter 7 Bankruptcy in Georgia
- Chapter 7 Bankruptcy in Georgia Debt Discharge
- Chapter 13 Bankruptcy in Georgia Overview
- Getting to know the Parties Involved in Chapter 7 Bankruptcy in Georgia
- Preparing for a Chapter 7 Bankruptcy in Georgia
- Exempt vs. Non-Exempt Property in Chapter 7 Bankruptcy in Georgia
- Changes to chapter 7 and chapter 13 bankruptcy laws for Georgia bankruptcy filings
