You may be wondering why you should file bankruptcy. When you decide to file Chapter 7 or Chapter 13, you have not thrown in the towel on your financial situation. You are simply giving yourself a new financial start. Many residents in Georgia file for bankruptcy every year, and once you are aware of Georgia bankruptcy laws, you will be better prepared during the process.
Georgia Bankruptcy Laws
Georgia residents should be aware that the recent changes in the bankruptcy laws have made it more difficult for individuals to file. If you make more than the median income for residents in Georgia, you will have to file for Chapter 13 bankruptcy. You will not be able to file for Chapter 7. However, Chapter 13 is not bad, and it can actually help you retain possession of certain property (i.e. homes in foreclosure).
For example, if you make less than $40,691 a year, you can file for Chapter 7. This is the median income in Georgia for a single person. But, if you make more than that amount, you will have to file for Chapter 13.
The Bankruptcy Limits
Understanding the Georgia bankruptcy laws and their limits can help you be more successful in bankruptcy court. The following table is for the median income limits for all cases that are filed after November 1, 2009. The limits are a family of:
- One – $40,691 yearly income
- Two – $55,258 yearly income
- Three – $61,104 yearly income
- Four – $68,502 yearly income
For families that are larger, debtors will need to add $6900 for extra family members. However, it is important to know that if your median income changes due to the additional money and you are over the median income limit, you will have to file Chapter 13.
Is Filing Bankruptcy The Right Choice For You?
A Chapter 7 bankruptcy can help eliminate a lot of your debt in a short period of time and give you the new start you are seeking. Chapter 13 does not eliminate debts, but it does give you enough time to repay your creditors. A knowledgeable Georgia bankruptcy attorney can guide you through the steps you will need to take.
The new Georgia bankruptcy laws can be confusing to the average resident. Hire a professional bankruptcy attorney who will help you figure out the best choice based on your personal needs. If necessary, you can file for bankruptcy in a Georgia Federal Court with your attorney’s assistance.
So, are you looking for an experienced and knowledgeable bankruptcy attorney in North Georgia? The Douglas Jacobson Law Firm specializes in debt relief and has successfully represented thousands of individuals and small businesses in bankruptcy court. Contact us for a free consultation.