There are many who would like to file for Chapter 7 bankruptcy in Georgia, but not everyone is eligible to do so. This is because unlike Chapter 13 bankruptcy, Chapter 7 is what is known as a liquidation of your debt. There are a few different things the bankruptcy court in Georgia will look at to make sure you are able to file for bankruptcy under Chapter 7 and if so, what can be covered by your bankruptcy filing. Things that will be looked at include your income, disposable income, previous bankruptcies and fraud.
Looking at Your Income
There is a guideline which dictates how much money you are allowed to make in order to qualify to file for Chapter 7 in Georgia. If you make too much, you will be required to file for Chapter 13 instead and change the way you spend your money. The only two exceptions to this rule are for people who have run into financial difficulty while serving in active duty for the military and those who incurred their debt due to business related expenses.
Looking at Disposable Income
If you make the right amount of money to file for Chapter 7 in Georgia, you will still need to pass the “means test”. This will let the court know whether after covering necessary expenses and structured payment of remaining debts, you will have enough disposable income. It is required that you are able to pass this test in order for you to be able to file for Chapter 7. If you have the ability to repay some debt within a five year repayment program, you will be asked to do so.
Looking at Previous Bankruptcy Filings
There are a few different regulations regarding past bankruptcy filings. If you are looking to file Chapter 7 in Georgia, you cannot have had a bankruptcy (either Chapter 7 or Chapter 13) dismissed in the past 180 days. It does not matter whether the case was dismissed because of a violation, fraudulent claim or you requested a dismissal. Additionally, you will not be able to file if you have filed a Chapter 7 bankruptcy in the last eight years or a Chapter 13 in the past six years. This is to prevent people from relying on the bankruptcy court to settle debts rather than repaying them.
Looking at Fraudulent Activity
It is important to note that when you sign your bankruptcy papers, one of the documents you will be signing is a “Penalty of Perjury” document. This states that all information contained within the bankruptcy filing for Chapter 7 in Georgia is true and accurate. If it is discovered that you have lied about holdings or that you have given property to friends and family to keep it out of the bankruptcy, your case will be dismissed. Additionally your case will be denied if it is discovered that you have accrued debt for luxury items when you had no money to pay for them, misrepresentation on a credit application or if you have hidden property or income during a divorce. In the instance you have misrepresented yourself on a bankruptcy filing, your case will be dismissed and you will run the risk of being prosecuted for fraud.
Related Posts
- Getting to know the Parties Involved in Chapter 7 Bankruptcy in Georgia
- Preparing for a Chapter 7 Bankruptcy in Georgia
- Debts That Can Remain After Chapter 7 Bankruptcy in Georgia
- Exempt vs. Non-Exempt Property in Chapter 7 Bankruptcy in Georgia
- Georgia Chapter 7 Bankruptcy Process Overview and Highlights
- When Filing Chapter 7 Bankruptcy Makes Sense
- Discharge of Chapter 13 Bankruptcy in Georgia
- Chapter 7 Bankruptcy in Georgia Debt Discharge
- When to File Chapter 13 Bankruptcy in Georgia
- Remaining Debts After Chapter 13 Bankruptcy in Georgia
