Bankruptcy is a process managed by the federal court to help consumers repay or get rid of debts. In the state of Georgia, chapter 7 and chapter 13 bankruptcy can be filed in three courts (depending on where you live). The type of bankruptcy filed will depend on if you want to wipe out debts completely or pay debts back over an extended period of time. Having a few tips before filing the necessary paperwork can help.
Types of Bankruptcy
When filing bankruptcy in Georgia, you have two choices: Chapter 7 bankruptcy or Chapter 13 bankruptcy. Chapter 7 wipes out all debt (except items that are exempt) and gives the filer a fresh start right away. Chapter 13 bankruptcy allows the filer to set up a payment plan for existing debts. Payment plans last over several years, which give debtors an opportunity to pay off debt.
Where to File Bankruptcy Forms
There are three Georgia courts where you can file bankruptcy forms, including the Southern District of Georgia, Northern District of Georgia and Middle District of Georgia. Files can be downloaded at the United States Courts website (see Resources) and filed in your local court.
The Bankruptcy Process
When filing Chapter 7 bankruptcy, you'll complete the "statement of financial affairs," which gives a detailed list of your creditors and the current balances on your debt. Up to 40 days after the paperwork has been filed, the Georgia court will contact you to set up a "341 hearing." During this hearing, the creditors will meet and you may be asked to provide additional information (if any questions arise during the hearing). During Chapter 13 bankruptcy, the state of Georgia will require you to prove you don't have more then $1,010,650 of debt that's secured (and $336,900 of unsecured debt). The Georgia court will appoint a bankruptcy trustee. After the trustee has approved your proposed payment plan (which is filed with the court documents), you'll pay the court monthly, and the court will distribute the money to creditors.
Debts Bankruptcy Won't Dissolve
Bankruptcy won't erase certain debts (even Chapter 7 bankruptcy), such as alimony, child support and recent (and back) taxes. Student loans and goods that are considered "luxury," that were purchased within the previous 90 days of the bankruptcy don't qualify. Cash advances made within 70 days of filing bankruptcy also won't be erased.
1.cancel as much debt as possible. 2.stop wage garnishments and attachments. 3.keep the maximum amount of property using Georgia exemption laws. 4.deal with secured debts and liens on your property. 5.keep your home and car, if possible.