Filing bankruptcy in Georgia can save you a lot of time, grief, and money.
Maybe it’s easy to see how you save grief and time: you spend less time finding ways to pay bills, less time worrying about bills, and less time agonizing about having wages garnished and your home taken. But how can you save money by filing Georgia bankruptcy? It may seem obvious for a Chapter 7 bankruptcy, where you discharge a debt. But you also save money in Chapter 13, mainly in terms of assets and property than actual dollar amounts.
Unfortunately, more and more individuals and families are ineligible for bankruptcy. This problem is addressed in this blog guide. We’ll be going over eligibility laws unique to Georgia, what to do if you are ineligible for one, and how best to use bankruptcy.
Eligibility for Chapter 7 Bankruptcy in Georgia
Chapter 7 bankruptcy eligibility is based on income. The more income you have, the harder it can be to file for help. However, if you are out of work or in a low-paying job, you’re almost always eligible. For individuals in Georgia, you can make up to $40,691. For families of two, $55,258. For families of three, $61,104. For families of four, $68,502. You can only file Chapter 7 every 8 years. Therefore, if you filed 5 years ago and want to file again, you can’t. Also, businesses cannot file Chapter 7, only individuals and families.
Chapter 13 Eligibility
Eligibility for Chapter 13 bankruptcy is pretty much the same nationwide. You can make as much money as you want, but there is a limit on the debts you can have. You cannot have secured debts – debts with collateral such as homes and cars – of $1,010,650 or higher. You cannot have unsecured debts – debts like credit card and medical bills – exceeding $336,900. You must also be an individual or family to file Chapter 13. Also, because in this form of bankruptcy you are paying some if not all of the debts, you must have a reliable source of income such as a job or disability capable of funding the debt repayment plan. Finally, if you filed any sooner than six years ago, you cannot file Chapter 13 anywhere in the country.
Filing a Second Time
The point of bankruptcy is to get a second chance financially. Unfortunately, many make the mistake of overspending and not paying on debts correctly, leading to a second bankruptcy. There may be some problems with how you handle money, and you may want financial help for overspending from financial experts and counselors. We all make mistakes, and though filing a second time can be disheartening, it’s important to move on.
What if you aren’t eligible?
Most commonly what occurs is those interested in Chapter 7 bankruptcy make too much. Because of the means test instituted in the bankruptcy code changes of 2005, if you make too much, as addressed earlier, you may be forced to file Chapter 13. This is not always bad. Chapter 13 has many advantages, including protecting your property and assets from being taken. Georgia has some of the highest foreclosure rates of all states, making stopping foreclosure entirely with a timely Chapter 13 filing a smart decision.
On the other hand, you may not be eligible for a Chapter 13 bankruptcy. If somehow you owe this amount of debt, you need some speak with some financial experts about your situation. This is rare, but there are solutions.
Who can help?
Bankruptcy is about getting help, not being judged. You likely want a person to help you, not a computer. An experienced Georgia bankruptcy lawyer can save you time, money, and assets. They can also guide you through the bankruptcy process.
