Seeking Bankruptcy in
Georgia
Georgia’s State Budget in Shambles
The recession continues to
wreak havoc on Georgia’s budget as tax collections and other state revenue
sources plunge. As the state goes, so
goes the populace. U. S. bankruptcies filed
in 2008 hit record levels with over 61,000 in Georgia alone, and over 96% of
those filed by consumers. It is
estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in
2009, the surge triggered by the foreclosure crisis and economic downturn.
Find Appropriate Georgia Legal Advice
The Federal Bankruptcy Law
involves processes, procedures and evaluations which can be complex and
confusing, including major revisions made in 2005. Seek the advice of a Georgia law firm with
specific long-term experience in Georgia bankruptcy matters. Check references, if possible. A competent Georgia attorney will help you
weigh your different options, make informed decisions, help you protect the
security of your family and reduce your stress, while facing the realities of
the situation.
Consumer Bankruptcy in Georgia
Chapter 7 is the “fresh start”
chapter of the Bankruptcy Code and most commonly used. This filing results in a fair distribution of
your available nonexempt property to creditors.
Unsecured debts are generally discharged. Included in this process is a “means test”,
used to determine your ability to pay your creditors, verifying whether Chapter
7 is appropriate or indicating that you should be filing Chapter 13.
Debts Which Generally Cannot be Discharged in Your Georgia
Bankruptcy:
- Taxes owed to government
agencies, such as the I.R.S., State of Georgia, County, etc.
- Student loans (unless undue
hardship can be proved),
- Debts incurred after the
bankruptcy is filed
- Debts owed to a spouse for
divorce-related obligatory expenses
- Debts not listed or scheduled or which the
debtor waived discharge
- Debts for willful and
malicious injury by the debtor to another person or property owned by
another
Paying Debts Outside of Your Georgia Bankruptcy
Certain debt payments may be
considered preferential and the Georgia Bankruptcy Trustee carries “avoidance
power” to overturn certain transfers or obligations made by the debtor prior to
or during bankruptcy. Examples include:
- Property
transferred or paid during relevant time period before bankruptcy
- Something passed
from the bankruptcy to a creditor
- Payment occurred
at a time when the bankrupt consumer/business was insolvent
- One creditor is
given advantage over another creditor
- Creditor
suspected or should have suspected that the bankrupt consumer/business was
insolvent
Georgia
Bankruptcy Law Firms
Georgians continue to suffer,
as the State’s economy
struggles to recover. If you are
considering filing for bankruptcy in Georgia, decisions you make and actions
you take now can have a positive or negative effect on the outcome of
your bankruptcy proceedings. Although
some filers elect to handle their bankruptcy on their own, The U.S. Bankruptcy
Court cautions that “Bankruptcy
has long-term financial and legal consequences -- hiring a competent attorney
is strongly recommended.” Click here to find Georgia
attorney resources in your area.