Chapter 7 Bankruptcy in Georgia: What You Need to Know

Learn About Filing Chapter 7 Bankruptcy in Georgia

Chapter 13 vs. Chapter 7: Which One is For You?

Chapter 13 and 7 bankruptcy are completely different. Which one you choose depends on what financial issues you have.

Your Credit Score and Bankruptcy

Bankruptcy and what is does to your credit is the number one questions consumers have about bankruptcy.

$0 Down Attorney Fee Filing Options

Retaining a bankruptcy attorney is easier than you think. You can file for bankruptcy protection without having to pay any attorney fees upfront.

How Does a Chapter 7 Bankruptcy in Georgia Work?

Chapter 7 bankruptcy is a liquidation bankruptcy that allows you to wipe out most of your unsecured debt. Chapter 7 bankruptcy filers in Georgia often keep their homes and their cars in bankruptcy as long as they are current on those assets and don’t have equity over the allowable limits.

Meet with Lawyer to Review Options

The first step is to schedule a free consultation with an experienced bankruptcy attorney to review your specific case and options. There is no one size fits all solution so make sure you get a personalized case review.

Complete Pre-Filing Credit Counseling Course

Once you decide to file for bankruptcy you will need to complete pre-filing bankruptcy course. This course can be done online or by phone and usually only takes about 30 minutes to complete. You cannot file your case without it.

Review and Sign Off On Your Paperwork

After your attorney has reviewed your case they will provide you a petition to review and sign.  This is the legal document that lists all your debts, assets, monthly budget, and household size.

Attend Your Court Hearing

Once your case has been filed you will be assigned a trustee, court date, and time. The 341 Meeting of Creditors last about 15 minutes and is a mandatory requirement. You want an attorney there with you.

Make Sure All Reaffirmations and Lien Avoidances Are Filed

After the 341 Meeting of Creditors you will need to make sure that you have signed all reaffirmation agreements on secured property you want to keep and that all judgments have been avoided.

Discharge of Case

Chapter 7 bankruptcy cases typically last from 4-5 months. Once your case has been discharged you can start rebuilding your credit and getting a fresh start on your financial life.

Talk to an Expert Georgia Bankruptcy Lawyer About Your Options

How Chapter 7 Bankruptcy Can Help You

Stop Garnishments

Once you file chapter 7 bankruptcy all garnishment actions have to stop.

Stop Lawsuits

Collection lawsuits must stop as soon as you file for Chapter 7 bankruptcy protection.

Stop Collection Calls

The automatic stay of bankruptcy prevents creditors from calling you or contating you.

Get Fresh Financial Start

Chapter 7 allows you clear your debt and start a new financial life.

Rebuild Credit in 12 Months

Most clients get their credit back to a “good” rating within 12 months of discharge.

Get Rid of Old Tax Debt

Tax debt over 3 years old can many times be discharged in Chapter 7.

Learn How to File Bankruptcy from Start to Finish

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Chapter 13 vs. Chapter 7

To obtain a bankruptcy discharge in a Chapter 7 bankruptcy in Georgia, you must meet income requirements to file under Chapter 7. Chapter 7 bankruptcy cases are often referred to as “liquidation” bankruptcy cases. A Georgia Chapter 7 trustee analyzes the debtor’s property to determine if the Chapter 7 trustee can sell the property at a bankruptcy auction. The proceeds from the sale are used to pay the debtor’s unsecured creditors.

A Chapter 13 bankruptcy case consolidates and restructures your debts into a bankruptcy repayment plan. Instead of paying unsecured creditors (i.e. credit card debt, medical bills, and personal loans) the full balance owed on the account, you pay a small percentage (or sometimes nothing) of the debt. Once you complete your Chapter 13 plan, these debts are discharged or forgiven.

You are not able to get rid of some debts in bankruptcy. However, through a Chapter 13 plan, you can repay many of these debts in full over three to five years. Priority unsecured debts that must be paid in full in a Chapter 13 or Chapter 7 case include alimony, child support, and most taxes. You must also pay any back mortgage payments in full if you want to keep your home.

The bankruptcy stops foreclosures, repossessions, wage garnishments, and debt-collection lawsuits. A Chapter 13 bankruptcy case allows you to keep your home and your vehicle by giving you more time to catch up the payments.

Georgia Bankruptcy Exemptions

Bankruptcy exemptions protect the net equity in your property from being used to increase your Chapter 13 plan payment.

The exemptions cover a wide variety of property, including, but not limited to, homes, vehicles, clothing, personal property, business equipment, retirement accounts, and health aids. Married couples who file Chapter 13 in Georgia can double the exemption amounts if both spouses own an interest in the property.

Georgia bankruptcy exemptions are found in GA Code §44-13-100. The exemption amounts may be adjusted periodically. Therefore, you must have the most current figures for Georgia bankruptcy exemptions when you begin to calculate your bankruptcy plan.

Figuring out the application of Georgia bankruptcy exemptions is a complex and ever changing area of law and requires the skill of a bankruptcy attorney training in consumer cases.

Where Are The Georgia Bankruptcy Courts Located?

Georgia has divided the state into three different bankruptcy districts. Below is a list of the three bankruptcy districts in Georgia:

Your county of residence in Georgia will determine which district and division your Chapter 7 or 13 bankruptcy case is filed.

Who is the Chapter 7 Bankruptcy Trustee?

A trustee is an independent contractor (not an employee of the bankruptcy court), who is appointed to in effect oversee your bankruptcy case. They are essential to the operation of the bankruptcy system. A trustee will be appointed in almost every bankruptcy case except for Chapter 11 reorganizations and Chapter 9 municipality cases. The bankruptcy trustee’s duties depend on the type of case he or she is appointed to administer.

Case trustee are appointed by a division of the Justice Department called the Office of the United States Trustee. The U.S. Trustee is divided into 21 regions across the United States. The U.S. Trustee was established in 1978 to be the watchdog in bankruptcy, guarding against bankruptcy fraud, among other tasks.

The law requires the debtor to cooperate with the trustee in the administration of a Chapter 7 case, including the collection by the trustee of the debtor’s nonexempt property. If the debtor does not cooperate with the trustee, then the case may be dismissed and the debts may not be discharged.

What Are the Pros and Cons of Chapter 7 vs. Debt Settlement?

To obtain a bankruptcy discharge in a Chapter 7 bankruptcy in Georgia, you must meet income requirements to file under Chapter 7. Chapter 7 bankruptcy cases are often referred to as “liquidation” bankruptcy cases. A Georgia Chapter 7 trustee analyzes the debtor’s property to determine if the Chapter 7 trustee can sell the property at a bankruptcy auction. The proceeds from the sale are used to pay the debtor’s unsecured creditors.

A Chapter 13 bankruptcy case consolidates and restructures your debts into a bankruptcy repayment plan. Instead of paying unsecured creditors (i.e. credit card debt, medical bills, and personal loans) the full balance owed on the account, you pay a small percentage (or sometimes nothing) of the debt. Once you complete your Chapter 13 plan, these debts are discharged or forgiven.

You are not able to get rid of some debts in bankruptcy. However, through a Chapter 13 plan, you can repay many of these debts in full over three to five years. Priority unsecured debts that must be paid in full in a Chapter 13 or Chapter 7 case include alimony, child support, and most taxes. You must also pay any back mortgage payments in full if you want to keep your home.

The bankruptcy stops foreclosures, repossessions, wage garnishments, and debt-collection lawsuits. A Chapter 13 bankruptcy case allows you to keep your home and your vehicle by giving you more time to catch up the payments.

Watch Our Chapter 7 Video Series for Detailed Discussion of the Bankruptcy Process

BANKRUPTCY SERVICES PROVIDED TO THE FOLLOWING COUNTIES IN GEORGIA FOR THE ATLANTA, GAINESVILLE, ROME, AND NEWNAN DIVISIONS

  • Cherokee County
  • Clayton County
  • Cobb County
  • DeKalb County
  • Douglas County
  • Fulton County
  • Gwinnett County
  • Henry County
  • Newton County
  • Rockdale County
  • Banks County
  • Barrow County
  • Dawson County
  • Fannin County
  • Forsyth County
  • Gilmer County
  • Habersham County
  • Hall County
  • Jackson County
  • Lumpkin County
  • Pickens County
  • Rabun County
  • Stephens County
  • Towns County
  • Union County
  • White County
  • Carroll County
  • Coweta County
  • Fayette County
  • Haralson County
  • Heard County
  • Meriwether County
  • Pike County
  • Spalding County
  • Troup County
  • Bartow County
  • Chattooga County
  • Dade County
  • Floyd County
  • Gordon County
  • Murray County
  • Paulding County
  • Polk County
  • Walker County
  • Whitfield County
Talk to an Expert Georgia Bankruptcy Lawyer About Your Options

© 2020 Saedi Law Group LLC. All Rights Reserved. LEGAL DISCLAIMER: We are a debt relief agency. We help people obtain relief from their creditors by filing for bankruptcy. Nothing posted on this website shall constitute legal advice. If you need legal advice please contact our office to schedule an appointment. No attorney client relationship exists until we have a written contract. The following websites are part of the Saedi Law Group, LLC online presence: stoprepossessiongeorgia.com gachapter13.com, stopforeclosuresalegeorgia.com