Bankruptcy in Georgia was designed to help honest debtors get a fresh start in their financial lives by reducing or removing their debts. Its other main purpose is to help debtors repay creditors in a fair manner that meets their financial capabilities. For example, someone with $80,000 in revolving debt and installment loans may be able to get most of that expunged entirely. If any requires repayment, they may be able to negotiate them to a more affordable rate, such as $50 per month instead of $500.

Of course, the first step in filing for bankruptcy is taking the time to learn what to expect from the process. That, in and of itself, can alleviate a lot of stress and uncertainty for debtors. Under Title 11 of the U.S. Revised Code, bankruptcy laws permit filing in a variety of manners, the most common being:

• Chapter 7
• Chapter 11
• Chapter 13

The exact steps involved in the process, requirements, and other details will vary depending on which type of bankruptcy is filed. However, the general process is the same. Here’s what you need to know.

 

Step One: Hire a Georgia Bankruptcy Lawyer

While many people will assume that the first step is to file the bankruptcy petition with the court, that’s getting quite ahead of yourself. Even if your regional Georgia courts make it easy to find the documents and submit them for processing, you still shouldn’t dive in unprepared. Something as simple as a “mistake” on the form could change the entire outcome of your case.

A bankruptcy lawyer can ensure that you follow the rest of the steps of the process and get through the bankruptcy proceedings without a lot of undue stress or concern. They will walk you through things, answer all your questions, and make sure that they are working to get the best outcome for your case, no matter what that might be. Plus, they’ve handled hundreds of these cases in their careers, so it’s like second nature to them.

 

Step Two: Collect All Your Documents

Now that you’ve got a professional on your side, they’ve likely told you to start collecting all of your debts, financial documents, statements, collection letters, etc. You will also need pay stubs or proof of income, tax returns, and other financial evidence and support to submit to the courts. Your lawyer can help you go over the details of your case to determine exactly what documentation you need to provide. Most commonly, courts will require:

• Tax returns and information related to tax debts
• Income documentation
• Real estate fair market value proof
• Mortgage statements
• Vehicle proof of value, insurance, and registration
• All bank and retirement account statements
• Identification

If you don’t have information about all of your debts, don’t worry. Those are usually located on your credit report and your lawyer will help you get the information that the courts require so that they can properly expunge the debts.

 

Step Three: Complete and Sign Bankruptcy Petition

This might be swapped with step two in some cases, but that depends on your lawyer and where you are in the process. Nonetheless, this is the step that actually puts the bankruptcy proceedings into motion. When you complete the petition and file it with the court, it puts your case on public record.

The petition will include information about why you are filing for bankruptcy, which type you are filing for, and other details regarding your identity and financial situation. Usually, your lawyer will take care of most of the details and only require you to fill in what’s missing and then sign the documents so that they can be filed.

 

Step Four: File the Forms with Your Georgia Bankruptcy Court

Depending on where you live, your bankruptcy filing will go to one of the districts:

• Southern District – Augusta, Brunswick, Dublin, Savannah, Waycross, Statesboro
• Northern District – Rome, Atlanta, Gainesville, Newnan
• Middle District – Macon, Columbus

This also includes paying the court costs, which range from around $300 up to over $1,700, depending on the chapter filed and other elements. Typically, your attorney will handle the actual filing with the court, for which they will have you send them a check, money order, or other secured funds to pay the court costs.

It’s important to follow the court’s instructions to the letter for filing so there are no delays or errors in processing.

 

Step Five: Get (and Attend) a Court Date

Once the petition has been filed with the court, they will issue a hearing date for your case. This will give you ample time to prepare the rest of your documents, gather financial records, and so forth. The court will then review all the documents, the petition filed, and other information. They will also check to ensure that you’ve attended the necessary credit counseling course (more on that in a minute) before they approve your case.

The court date is an unusual experience for those who have never experienced it. You will typically be brought into a waiting room with everyone else that has a hearing that day. Then, the cases will be called one at a time. You and your lawyer will go into the courtroom and then the hearing of your case will begin. Based on the information provided by you and your lawyer, the judge will decide whether to fully discharge, partially discharge, or not discharge the bankruptcy.

If they deny the petition, you will be able to file an appeal to attempt to get a better outcome. Your attorney can provide more information on that.

 

Step Six: Finalize the Bankruptcy and Start Fresh

Once the court has approved and discharged your bankruptcy, it’s time to start fresh. Since you have new education on credit and financial management, you’ll be better prepared to move forward and make sure that you don’t end up in this position again in the future. Within 3-4 months of the initial filing, you will receive the final discharge that eliminates debts and allows you to start your credit journey over again.

 

Credit Counseling: A Mandatory Step in Georgia

We didn’t add this one to the list because it can be done at any point in the process. It’s best to complete it early on, however, to ensure that it doesn’t keep the case from being approved and the debts discharged. Bankruptcy law requires debtors to attend a credit counseling course as part of the process. This course can be attended in person or online, but it typically only takes a few hours to complete.

According to the U.S. Courts, everyone who files for bankruptcy individually must attend a pre-bankruptcy course on credit counseling and a pre-discharge course on debtor education. Their website has plenty of information on credit counseling requirements, as well as how courses are approved by the court system. And again, you can also ask your lawyer for information on classes that qualify, how to find affordable options, and more.

 

Common FAQs About Filing for Bankruptcy in Georgia

Bankruptcy is a fairly cut-and-dry process. However, because it has so many elements and variables, it can be intimidating to those who are thinking about it for the first time. To help alleviate those concerns, here are some common questions and answers about bankruptcy filing in the state of Georgia.

How old do you have to be to file for bankruptcy?

Anyone over the age of 18 with sufficient debt (and proof of it) can file for bankruptcy.

What type of bankruptcy should I file?

There are several types of bankruptcy, as discussed above. They all have their pros and cons, as well as their methods of eliminating or reducing debt. Talk to your lawyer to determine what filing is best based on your financial situation.

How much does bankruptcy cost?

Everyone filing for bankruptcy is dealing with money problems—it’s only natural to want to have a cost to attach to this process. The court filing fees range from $300 up to $1,700, depending on which chapter you file. What you spend on a lawyer will vary, but most bankruptcy lawyers have flexible options and payment solutions to ensure that they can help people without creating a huge financial strain.

Can I file for bankruptcy without a lawyer?

Technically, you can file for bankruptcy on your own. However, because of the level of complexity in the laws, it’s always better to have a professional on your side. You will avoid potential mistakes or issues that could cause your case to be dismissed or denied, and you will have someone who can help you understand the process and answer your questions along the way.

 

Preparation Is Key

Anyone who is facing the potential of bankruptcy is also likely dealing with a huge amount of stress. Fortunately, planning and being prepared can help to eliminate a lot of worry and concern. Now that you understand the steps of the process and a little more about what to expect, it should be easier for you to get through your own bankruptcy proceedings.

If you want to ensure that you’ve got the best help on your side, contact the lawyers at Morgan & Morgan. We have years of experience in dealing with Georgia bankruptcy cases, including all chapters and types of filing, what the courts expect, and more. We’re ready to help when you need us, so give us a call at 706-843-2905 or schedule a consultation today.

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