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How to File for Bankruptcy in Georgia
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As the state with the third highest bankruptcy-filing rate in the country, it is clear that the financial outlook for Georgia is far from positive. In addition, they are ninth in the nation in unemployment, making it clear that there are still many people facing financial difficulties and possibly considering bankruptcy. For many, filing bankruptcy can be the beginning of a long, hard road back to financial stability. How can an individual know if bankruptcy is the right choice?
Finding a Bankruptcy Attorney
One of the first places to go for advice and assistance concerning bankruptcy options is a bankruptcy attorney. They have the training and experience to assess their clients’ circumstances and help them find the best legal and financial solution. However, finding such a legal representative can be difficult. Word of mouth, online reference sites, and personal interviews can help each debtor find the lawyer that meets their needs.
Bankruptcy Options
Once it has been determined that bankruptcy is the correct choice, the consumer and their attorney must determine whether Chapter 7 or Chapter 13 is the best option.
- For those who have little or no property, Chapter 7 usually works well. They have nothing for the bankruptcy trustee to liquidate, and most of the debts can generally be discharged, or erased.
- For those with property they do not want to lose, Chapter 13 may work better. They retain their debts, as well, but can work with the trustee to devise a plan to pay them back at a lower monthly rate over a three- to five-year period.
Georgia Exemptions
Georgia is unusual in that a greater percentage (60%) file for Chapter 13 bankruptcy. However, those filing Chapter 7 can often protect much their property through state exemptions (federal exemptions are not allowed by Georgia law), such as:
| Homestead | Up to $10,000 (can be doubled if married) |
| Personal Property | Motor vehicles up to $3,500; clothing, household goods; furnishings; and crops up to $300 per item and $5,000 total; various financial recoveries if required for support |
| Wages | For private and federal workers, either 40 times the federal or state minimum hourly wage or a minimum 75% of wages earned but not paid, whichever is greater |
| Pensions | Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; ERISA IRAs and qualified benefits; non-profit corporation employees; public employees |
| Public Benefits | Worker’s comp; unemployment; veterans’ benefits; Social Security; crime victims’ compensation; local public assistance; old age assistance; aid to blind; aid to disabled |
| Tools of the Trade | Up to $1,500 of tools, books, and implements of trade |
| Insurance | Fraternal benefits; life insurance proceeds and annuity and endowment contract benefits of various types, especially if required for support |
Filing the Petition
Once the options are determined, the debtor and their lawyer prepare appropriately, and the filer completes credit counselling, filing a petition for bankruptcy is easily handled by the bankruptcy lawyer. The bankruptcy trustee is in charge of much of the remainder of the proceedings, although a lawyer can help the consumer answer any questions that arise in the required 431 meeting with the bankruptcy trustee and the creditors. If all the requirements are fulfilled, the debtor is free to begin anew (for those filing Chapter 7), or begin paying off all debts (for those filing Chapter 13).
This article is provided for informational purposes only. If you need legal advice or representation,
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Popular Topics
Chapter 7 Bankruptcy - Learn about the most common type of Bankruptcy.
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Process of a Bankruptcy Case - Find out what's involved in filing a bankruptcy case.
Property and Exemptions in Bankruptcy - Find out how your property is (or is not) protected.
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Chapter 13 Bankruptcy - Options for homeowners and filers with high income.
Process of a Bankruptcy Case - Find out what's involved in filing a bankruptcy case.
Property and Exemptions in Bankruptcy - Find out how your property is (or is not) protected.
Your Home in Bankruptcy - If you're a homeowner, find out what happens to your house.
Your Car in Bankruptcy - Learn about your options to keep (or surrender) your car.
Using a Bankruptcy Lawyer - Find out if you need a lawyer and how to pick a good one.
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