If you are looking for a fresh start financially, you may need to consider filing a chapter 7 bankruptcy.  This form of bankruptcy is the most common and may be referred to as a straight or liquidation bankruptcy. 

Once a Chapter 7 bankruptcy is completed, all possible debts are eliminated for the debtor.  In Atlanta, you may only file a Chapter 7 bankruptcy if your household income falls below certain levels.  This limit is equal to the average household income for the state and does account for the size of your family. 

The median income tables are adjusted every six months and are available on the website for the bankruptcy trustee in your area. 

If your income exceeds this value for your family size, you may still be able to qualify for a Chapter 7 bankruptcy filing in Georgia, but you will have to satisfy a secondary qualification, known as a means test. 

The means test is designed to eliminate Chapter 7 bankruptcy as an option for those who have the ability to repay their debts through a Chapter 13 repayment plan. 

Essentially, this test ensures that Chapter 7 bankruptcy is utilized in only the situations where it is necessary and not as a blanket “get out of jail free” card for those who have made poor financial decisions. An Atlanta bankruptcy lawyer can assist you in determining if you qualify for a Chapter 7 filing. 

For the means test, a list of the debtor’s expenses is compiled.  The IRS has assigned a value for each of these expenses.  These allowable expenses are then compared to your gross household income.  If the amount left over is less than $100 each month, you may qualify to file a Chapter 7 bankruptcy in Atlanta even though your income exceeds the average household income for the state.