A State-by-State Guide to Filing for Bankruptcy Protection: Georgia

Bankruptcy laws vary from one state to another. Here is a breakdown of Georgia bankruptcy guidelines to help you understand the differences when filing for Chapter 7  Bankruptcy vs. Chapter 13 Bankruptcy.

Georgia Bankruptcy Guidelines

A Georgia bankruptcy lawyer will probably begin your consultation by explaining the difference between Chapter 7 and Chapter 13 bankruptcy. This often includes what is called a “means test.” This involves asking some very personal questions about your assets, debts and your financial goals. The answers you provide to these questions will help you and your bankruptcy lawyer determine if filing Chapter 7 or Chapter 13 bankruptcy is right for you.

Chapter 7 bankruptcy is usually called “liquidation” because the bankruptcy trustees in Chapter 7 bankruptcy cases may opt to sell any non-exempt property the debtor owns. In many Chapter 7 bankruptcy cases, the debtor does not own any non-exempt assets, so no property is sold. Unsecured debts may be completely discharged in Chapter 7, making it an attractive bankruptcy option.

If you are filing Chapter 7 bankruptcy, find out from your Georgia bankruptcy lawyer which and how much of your assets may be exempt from liquidation.

Georgia State Bankruptcy Exemptions

Homestead

* $10,000 for real or personal property, $20,000 if property owner is married.

Wages

* 75 percent of weekly earnings.

Automobiles

* Your interest in up to $3,500 in all motor vehicles.

Personal Property

* $1,500 for any implements, professional books, tools of the trade.
* Up to $300 in value in any one item.
* Up to $5,000 in household furnishings, good, clothes, appliances, books, animals, crops or musical instruments.
* $500 in jewelry.
* Certain retirement and insurance benefits may be fully exempt.

Note: Keep in mind all state bankruptcy laws and exemptions are complex. If you need legal advice or want to fully understand how Georgia laws affect you, please speak with an attorney in Georgia. State bankruptcy laws are subject to change at any time. For the latest information, read the full text of Georgia bankruptcy laws.

Links to Georgia Bankruptcy Lawyers:

moneylawyer.com

thebklawyer.com

OVERVIEW
People often don’t recognize that they are in trouble with debt until it is too late. Ask yourself these questions to see whether or not you are in trouble with debt.

People often don’t recognize that they are in trouble with debt until it is too late. Ask yourself these questions to see whether or not you are in trouble with debt.

1. In trouble with debt: Do you have a clear picture of your credit card debt?
Many people feel they have a credit card debt problem, but they refuse to acknowledge it. They avoid looking at their credit card balances. They still use their credit cards, even though they know they shouldn’t. They pay off one credit card with a check from another. They transfer credit card debt balances instead of making payments. These are all signs that your credit card debt could be getting out of control.
2. In trouble with debt: Do you pay only the minimum credit card payment every month?
Paying only the monthly minimum can get you into credit card debt trouble quickly. Paying the monthly minimum will cover the interest and fees associated with your credit card, but it will not begin to decrease the credit card debt you owe.
3. In trouble with debt: Do you make late payments? Have you missed payments entirely?
Making a late payment usually means you’re waiting for the money to come in. This means you’re behind already and you will have trouble catching up. Missing payments entirely just means you’re getting further behind on your credit card debt.
4. In trouble with debt: Are you using credit cards to buy things because you don’t have the money to pay for them at that time? You can get into trouble with debt quickly with credit cards if you’re using them to buy things you cannot afford. If you can’t afford an item this month, it’s likely you’ll not be able to afford it the next month either. If you continue to buy things you cannot afford, you will get into more credit card debt trouble.
5. In trouble with debt: Does your paycheck only your bills? If your paycheck is already spent before you get it, chances are you have trouble with debt.
6. In trouble with debt: Do you choose the longest terms for a new debt? If you buy a new car, do you choose to pay over 60 months or 36? If you consistently choose the longest loan period for a major purchase so that you can afford the payments along with all your other payments, you have a problem with the amount of debt you’re carrying.
7. In trouble with debt: Have you already gone through a home equity loan to pay down your debt? If you have and you’re still running up more debt, you have debt trouble.
8. In trouble with debt: How much monthly debt do you have every month when compared to your income? If your unsecured debt (not including mortgage or rent) is more than 20% of your paycheck, you are in trouble with debt.
9. In trouble with debt: Do you have savings for a rainy day? If you don’t have a fund for an emergency and you have debts, you are in trouble with debt.
10. In trouble with debt: Do you worry about money? If you spend more time worrying about your debts than you do paying them, chances are you are in trouble with debt.

OVERVIEW
For a variety of reasons, there are times when you can’t make the payments on your bills. What happens when I don’t pay my bills?

During the current economic crisis, it has become more and more common to hear of people who can’t pay their monthly bills. This may happen when one person in the family loses a job or gets a pay cut. It may happen when the interest rate on a variable mortgage payment rises and the payment is now higher, leaving less money for other bills. For a variety of reasons, there are times when you can’t make the payments on your bills. What happens when I don’t pay my bills?

When I Don’t Pay My Bills: Collection Notices. You will receive a notice or two from your creditors reminding you that your payment is late.
When I Don’t Pay My Bills: Collection Calls. Your creditors will begin to call you, hoping to remind you that a payment is past due. You can speak with them about your inability to pay at this point and hopefully negotiate a payment plan that you can meet.
When I Don’t Pay My Bills: Increased Interest Rates.If you haven’t paid your bills, or you have but they’ve been late, chances are that you will find yourself with an increased interest rate. This is especially true with revolving charge accounts, such as credit cards.
When I Don’t Pay My Bills: Negative Credit Rating. Your payment history is reported to credit agencies, such as Equifax, Experian and TransUnion. If your credit history reveals a failure to pay, or a history of late payment, this will negatively affect the credit rating that these three companies create for you. With these negatives influencing your credit rating, your credit score will fall and you will become a bad credit risk. It will be more difficult for you to borrow money in the future.
When I Don’t Pay My Bills: Legal Action. The credit card companies could initiate legal action against you if you continue to be deliquent with your payments or fail to make arrangements with them.
When I Don’t Pay My Bills: Bankruptcy. You could be forced to declare bankruptcy to satisfy your creditors. While this word has a negative connotation, bankruptcy doesn’t have to be a negative experience. Bankruptcy can help you wipe your financial slate clean and begin again. It will take time to reestablish credit, but you will begin your financial life anew, on solid ground.

When I Don’t Pay My Bills: How to Prioritize
When you find yourself in position of having to make choices about which bills to pay, how do you choose?
When I Don’t Pay My Bills: Health and Security. Your family’s health and security should be paramount, so it’s important to take care of meeting your mortgage and paying your health insurance. You’ll also need to take care of transportation, utilities and food.
When I Don’t Pay My Bills: What Will You Lose? If you will lose something by not paying a bill, you probably do not want to skip that payment. Look to unsecured bills, such as credit cards, as bills you might be able to skip.
When I Don’t Pay My Bills: Interest Rate. Which credit cards have a higher interest rate? You can sometimes buy yourself some time and save yourself some money by transferring balances from a high interest card to a lower interest card. You can often contact the credit card company and talk to them about lowering the interest rates or creating a payment plan with smaller payments.
When I Don’t Pay My Bills: Consolidation Loan. Consider a consolidation loan carefully. Be sure to understand the interest rates and fees associated with a consolidated loan.

OVERVIEW
When a person or company is no longer able to pay its creditors, the individual or firm usually files for bankruptcy protection. Typically, a bankruptcy filing is initiated voluntarily by the person, who will declare him/herself unable to meet his/her creditors. The most common form of bankruptcy generally protects an individual or firm’s assets from creditors.

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When a person or company is no longer able to pay its creditors, the individual or firm usually files for bankruptcy protection. Typically, a bankruptcy filing is initiated voluntarily by the person, who will declare him/herself unable to meet his/her creditors. The most common form of bankruptcy generally protects an individual or firm’s assets from creditors. Sometimes, creditors will file a bankruptcy against an individual in order to try to get back some of what they are owed or to restructure the debt. Bankruptcies are always filed in the United States Bankruptcy Court, which is a federal court, but bankruptcies are subject to state laws as well.

When You File for Bankruptcy: Types of Bankruptcies
There are six different types of bankruptcies according to the Bankruptcy Code. Chapter 7 bankruptcy handles the basic liquidation of the assets of an individual or a business. Chapter 11 bankruptcy handles the reorganization of a business’s debts, and Chapter 13 bankruptcy handles the rehabilitation of an individual with a steady income. Those are the most common forms of bankruptcy declared by individuals and businesses. Up to 65% of consumer bankruptcy filings are Chapter 7 bankruptcy filings. There are strict laws and guidelines for bankruptcy filings and bankruptcy fraud. If you are considering filing for bankruptcy, be sure to seek counsel so that you understand the complexities of the issue.

When You File for Bankruptcy: Chapter 7
In a Chapter 7 bankruptcy, the debtor needs to surrender all nonexempt property and assets to the court. The court then converts those assets to cash. That cash is then used to pay the creditors at least a portion of what they’re owed. This action then discharges the debtor from being liable for the debts. Creditors are notified of the bankruptcy proceedings by the court. Once they’ve received that legal bankruptcy notification, they must stop their collection efforts for that debt.

Bankruptcies are a matter of public record. Anyone looking for bankruptcy information can easily find it. Typically, however, unless your landlord or your employer are named as creditors in the bankruptcy action, they will not discover that you’ve filed for bankruptcy. You cannot be fired from your job because you’ve filed for bankruptcy. Spouses do not have to file bankruptcy together. If only one person has debts, it is likely that the spouse will not have to file bankruptcy as well.

When You File for Bankruptcy: Seek Legal Counsel
When you are contemplating bankruptcy, be sure to first seek legal counsel. You will need assistance with debt management, and debt settlement. You will be instructed about what debts can and cannot be discharged. You’ll want to understand which assets are protected. Keep in mind that hiding assets or running up debts right before declaring bankruptcy can create serious legal problems.

When you file for bankruptcy, it has a negative connotation. But the reality is that you can recover from bankruptcy and begin to recreate a positive financial life. You should begin this process as soon as you can after the bankruptcy filing. Reestablish credit through your bank. Reaffirm your car loan. Remember that when you file for bankruptcy, you cannot do so again for eight years.