Though rare, a creditor can appeal your decision for being discharged of a debt. Since most filers make less than the average Georgia income, the amounts discharged are not necessarily huge. But cases of tens of thousands in credit card debt to hundreds of thousands in medical debts (common with lack of coverage) can and often are discharged at no cost to the filer.

For Atlanta residents stuck with debt, the good news is if you time this right, you can save quite a lot of money. You obviously save money by not having to pay these debts. This is no loophole; if you are eligible, you can save thousands of dollars.

Timing is important. If within the past six months you made more money than average for Georgia individuals or families, you cannot use Chapter 7. If you have enough disposable income, along with more money coming in from a job, you may be forced to file Chapter 13.

Because Chapter 13 has its own inherent advantages, consulting with legal help is smart. While many Atlanta families fall within the income limits for Chapter 7 bankruptcy, in some cases a Chapter 13 filing may be necessary or more effective.

Timing is also important on what debts you owe, what you do with what money you have, and what debts you can discharge. For example, you might be expecting an impossible-to-pay medical bill to come in because you lost your job and lack coverage. In this case, timing is critical to discharging the debt. If you file before the bill comes, you will not be able to discharge the debt. If you wait long enough, if possible, until you get the bill, it can save you a lot of money.

Thousands of Atlanta residents and over 1.5 million U.S. citizens have successfully used bankruptcy to discharge or repay debts in the pasty year. The great majority of these are Chapter 7 bankruptcies.

The reasons are clear: jobless rates and the mortgage depression have hurt many individuals and families. More have filed in the past 12 months since last July than filed bankruptcy in the 12 months before that. The numbers are up almost 20%.

What does this mean to you? Filing bankruptcy is not always about whose at fault and who spent too much money. Bankruptcy is part of the system, and a fact of life. If you have a family, if you just lost your job, if you fear losing your home to foreclosure, it’s time to speak with an Atlanta bankruptcy attorney.

If you have a high paying job, you are often not eligible for Chapter 7 bankruptcy. For example, if you make over $40,456 in Georgia as an individual, you are not eligible for Chapter 7 bankruptcy. This number varies from state to state. Let’s go into more detail on how the means test, your job status,and Chapter 7 bankruptcy work.

No Job is Good
As noted, if you have no job, you are likely eligible for bankruptcy. If you have no other income coming in, the majority of the time you are eligible. Even if you do have a job, the lower paying it is the greater the possibility you will be eligible to file. If you make too much, you have to file Chapter 13 bankruptcy.

The Means Test
The means test is how this eligibility is factored in. It’s important to note that if you have a high paying job but lose it, you may not be eligible for several months. The means tests works like this: your past income for the previous six months is compared to the median income for other Georgians, so if you make $60,000 as an individual, you are over. Now, if you lose your job, it’s wise to wait several months before applying for Chapter 7 relief. This is because your prior income will be factored in, even if the job is gone.

What happens if you’re not eligible for Chapter 7? First off, because of the 2005 changes to Bankruptcy Code, Chapter 13 bankruptcy, which is a debt repayment plan, is now more common for those with higher incomes. If you make too much for Chapter 7, you’re likely eligible for Chapter 13.

Georgia Chapter 7
Filing Chapter 7 bankruptcy has many advantages, namely the fact you can discharge a lot of debt. Even with unemployment benefits, having bills come in for credit cards and medical fees can be daunting. Chapter 7 has the ability to discharge these debts at little cost to you; most who file Chapter 7 in Georgia and elsewhere lose nothing.

If You Need Help
If you have no job, how can you afford to file bankruptcy? Well, Chapter 7 bankruptcy only costs $299 to file, which may seem like a lot, until you see you can discharge tens of thousands. Lawyer fees are typically more, and this can be tough if you have no job. However, it’s crucial to get a specialist in bankruptcy law so you can successfully discharge the most debt and keep all your assets. And though lawyers are never free, an experienced one can save you more money than he or she charges.

Understanding the rules of the bankruptcy process can be complicated and confusing. It is best to speak to an Atlanta bankruptcy attorney if you are considering bankruptcy.

Your household income is used to determine if you qualify for Chapter 7 bankrupcty or if you would have more disposable income available to payoff a portion of your debt.

First compare your income to the median income for your area. Below is the median income for Georgia as determined by the U.S. Census Bureau as of October 2008.

1. One person –  $39,253 
2. Two persons – $52,055
3. Three persons – $59,668
4. Four Persons - $68,908

If your household income is less than the median income, you will automatically qualify for Chapter 7 bankruptcy in Atlanta. If it is higher, there are quantifiers that could still qualify you for Chapter 7 protections. Speak to an Atlanta bankrutpcy lawyer to find out if you qualify for Chapter 7 bankruptcy.