Posts Tagged ‘Chapter 7 bankruptcy’

Tips on Successfully Filing Georgia Bankruptcy

Why file bankruptcy? Filing Chapter 7 or Chapter 13 bankruptcy is not giving up; it gives you a second chance financially. And thousands of Georgia residents file successfully for bankruptcy every year.

If you plan to file for Chapter 7 bankruptcy in Georgia, it’s important to know that the new bankruptcy laws are making it harder to file. Many individuals who make too much money–the median income for Georgia residents–are now forced to file under Chapter 13. Chapter 13 bankruptcy really isn’t bad, especially if you fear home foreclosure (it can actually save your home).

Now, for a Georgia resident, if you make under $40,691, about the median income for single residents in the state, you can file under Chapter 7. If you make more than $40,691 as a single resident, you will be forced to file under Chapter 13 in Georgia.

Here is a quick breakdown of Georgia bankruptcy limits so you can file successfully file with Georgia bankruptcy court.

The following is the median income table applicable for bankruptcy cases filed in Georgia after November 1, 2009:

Family Size 1: Annual Income $40,691
Family Size 2: Annual Income $55,258
Family Size 3: Annual Income $61, 104
Family Size 4: Annual income $68,502

After this, you add $6,900 to each additional family member. Bear in mind, this is the Georgia median income, not the same as other states. If you make too much based on these figures, which likely will change, you may be forced to file Georgia Chapter 13 bankruptcy. This includes all residents of the state.
Is bankruptcy right for you?

Chapter 7 bankruptcy can clear a lot of debt and give you a fresh start, mainly by eliminating credit card debt in a matter of months. Filing Chapter 13 bankruptcy is different, as no debts are canceled–you give yourself more time to pay back debts such as on your home, car, and credit cards.

Filing Chapter 7 bankruptcy requires a professional bankruptcy lawyer to walk you through the steps. For one, filing Chapter 7 means you have to fill out a lot of documentation. This includes many documents from the six months prior to filing for bankruptcy:

-Bank statements, investments, IRA’s, 401k’s, pensions, and other economic statements
-Utility bills such as heating and service bills
-Proof of household income, including pay stubs
-House expenses

After you’ve figured out what you’re eligible for and what to file, the next step is to hire a professional bankruptcy attorney who can help you remove or pay back debts by filing. A good bankruptcy attorney saves you money, doesn’t cost you money. You can find local lawyers on the State Bar of Georgia website.

After hiring an attorney, you can successfully file bankruptcy in Georgia federal courts. These are Georgia Middle District Court, Georgia Northern District Court, and Georgia Southern District Court. They follow the same bankruptcy code used by all states, but these courts will factor in the median income for Georgia residents.