Bankruptcy can help Georgia families in many ways. It’s quite often the smartest financial decision you can make as a family when bills are coming in, interest rates are killing you, and relief is needed. This blog post will highlight your bankruptcy options, find out if you’re eligible, go over  the best reasons to file for bankruptcy, and also give tips on finding legal help.

Your Georgia Bankruptcy Options
You can file either Chapter 7 bankruptcy or Chapter 13 bankruptcy. Both have unique advantages, though sometimes you’ll not be able to file one, if not being eligible to file at both (which is rare, but happens). Chapter 7 helps families with immense debts impossible to pay. Typically credit card and medical debt puts families in a bad spot, and bankruptcy can discharge these debts. Chapter 13 is a debt repayment plan buying you and your family time to catch up on bills; it also protects your home from foreclosure.

If you are making a reasonable amount of money, you have a home and car, and your debts are just out of control, Chapter 13 can help you manage these debts while also ensuring you keep your home and car. If paying your debts is impossible, Chapter 7 can discharge these debts. It does depend on eligibility.

Family Eligibility for Bankruptcy
Chapter 7 bankruptcy eligibility in the state of Georgia is, like other states, based upon your income and the median income. For one person, the annual income limit is $40,546; for a family two it’s $55,061; for a family of three its $60,887; for a family of four it’s $68,258; and after that you add another $7,500 per additional family member.

For Chapter 13 bankruptcy, you can make as much money as you want. Your eligibility  is based on your secured and unsecured debts. If your unsecured debts exceed $336,900, or if your secured debts exceed $1,010,650, you are not eligible for Chapter 13. Unsecured debts are debts like credit and medical bills, with no asset or property involved. A secured debt is debts like your home and car, which can be taken if you fail to pay. All State laws are the same for Chapter 13 eligibility.

Why File Bankruptcy?
Filing Chapter 7 bankruptcy can literally save you from losing everything. If you have a minimal income, if you or your spouse recently lost a job, if you just got an unexpected huge medical bill, often your best option is to be free of this debt instead of spending years paying on it. Yes, bankruptcy will hurt your credit and ability to get loans, but in reality you can rebuild by following some simple steps.

Chapter 13 bankruptcy on the other hand can protect your home from foreclosure. If you make too much money for Chapter 7, you may think Chapter 13 is less effective. In some ways, this is true, but Chapter 13 can better protect you if you own a lot of properties and assets. If you’ve spent thousands on your home and car, losing them is a scary option.

Who can help?
For Georgia families, bankruptcy is a step in the right direction. If you are unsure if your financial position merits filing for bankruptcy, if you want to know whether you’re eligible, if you want to protect your assets, or if you have an impossible bill, consulting with an experienced Georgia bankruptcy lawyer can help.