Filing for bankruptcy in Georgia comes with a lot of questions and uncertainties. It’s already a stressful time for people—they’ve fallen into serious debt and are facing nonstop collection calls, overdue bills, past due and cancellation notices, and more. Some might even be close to foreclosure on their homes, causing even more anxiety and concern. In any case, the best way to alleviate all of that is to hire a reputable Georgia bankruptcy lawyer.

Doing your own research is also a good idea. With that in mind, we’ve created this guide to help you learn more about bankruptcy in Georgia and what to expect. Here are the top 13 FAQs about bankruptcy and the filing process.

 

1. What is bankruptcy?

Bankruptcy is a law that was created to allow debtors to rid themselves of excessive debts that they are unable to pay. Essentially, it offers people who have gotten in way over their heads a way to get a “fresh start” in their finances and credit report, making it easier for them to move forward and create a better credit profile for themselves moving forward.

Bankruptcy laws are created and managed at the federal level, In Title 11 of the U.S. Revised Code, also known as the Bankruptcy Code. States may also have their own statutory laws on the books for areas not covered by federal laws.

 

2. What are the different types of bankruptcy in Georgia?

There are six different types of bankruptcy filing options, named for the chapters where they are found in the Bankruptcy Code:

• Chapter 7
• Chapter 9
• Chapter 11
• Chapter 12
• Chapter 13
• Chapter 15

Depending on the circumstances of your case, your bankruptcy lawyer can help you decide which type you’ll need to file. Most consumers file Chapter 7 or Chapter 13, but the others are available to those who need them.

 

3. Do I need a certain amount of debt to file for bankruptcy in Georgia?

There is no magic number or “benchmark” that dictates whether you should file for bankruptcy. What matters is that the debts are excessive and go above and beyond what you are capable of repaying. For some, that might mean filing for bankruptcy with just $10,000 in debt. For others, it might be closer to $100,000.

 

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

Anyone who is over the age of 18 is legally eligible to alleviate financial burdens by filing for bankruptcy. Provided that you can prove you have the necessary debts to meet the criteria of the chapters mentioned above, all adults are allowed to file.

 

5. Do you have to have a lawyer to file for bankruptcy in Georgia?

Georgia does not require you to have a lawyer for bankruptcy. However, it’s a good idea to hire a lawyer anyway, as they can help you navigate the legal process and ensure that you get the best outcome. Bankruptcy lawyers:

• Know the law
• Have experience in bankruptcy cases
• Can handle negotiations with creditors
• Provide peace of mind
• Help you get through the process more smoothly

Plus, for those who are worried about the costs, many attorneys are willing to work with you on fees and payments to make sure that it’s feasible.

 

6. Can you get student loan debt discharged in bankruptcy?

Student loans cannot automatically be included in a bankruptcy filing. However, you can file a Complaint to Determine Dischargeability, which will allow you to prove to the courts that repaying your student loans would cause undue hardship. This will initiate a secondary proceeding to determine the hardship and whether it qualifies.

 

7. Is medical debt able to be included in bankruptcy?

Medical debt is the primary reason that many people file for bankruptcy in the first place. It’s a type of non-secured debt and it can be discharged in most of the chapters that can be filed.

 

8. What is the bankruptcy filing process in Georgia?

With your lawyer, you’ll need to determine which type of bankruptcy you will file. Then, you should complete the petition and file it with the courts. While awaiting a trial date assignment and other updates, you should gather all of your bills, collection notices, and other financial documents so that your lawyer can start processing them and completing the rest of the paperwork. Once all the information has been collected, it will be filed with the courts and a hearing date will be assigned.

At the hearing, the judge will review the elements of the case, including the debts in question and whether people meet the criteria. In Georgia, one of those criteria is to attend a credit management class that helps you learn money and credit skills, in the hopes it will prevent you from finding yourself back at the bankruptcy table in the future. The court will either approve or deny your filing, or they may approve it with conditions. Then, the credit slate is wiped clean, the bankruptcy is closed, and you can get back to your life.

 

9. Will bankruptcy eliminate my debts?

If you file for Chapter 7 bankruptcy, your debts will typically be discharged, and you will start with a clean slate. There may be some instances where secured debts cannot be discharged, and you can’t include tax debt on your bankruptcy, so that will have to be handled otherwise. Ultimately, you’ll want to discuss all of your debts and the type of bankruptcy that you file with your attorney to get a better understanding of what to expect.

 

10. Can bankruptcy stop foreclosure or repossession?

Chapter 7 bankruptcy, the most common type filed, will induce an automatic stay, which stops lenders from repossessing your vehicles or from proceeding with foreclosure efforts on your home. However, lenders may file a motion with the courts to lift the stay if they desire, and that can end badly for consumers. Chapter 13 stops the sale or repossession and allows you to propose a repayment plan to cover everything that’s behind and current payments.

 

11. How much does bankruptcy filing cost in Georgia?

Legal fees will vary from one lawyer to the next. You will need to contact your bankruptcy attorney and ask them about their fees so that you know what to expect. Fortunately, many bankruptcy attorneys work with no retainer or on a zero-down agreement and allow you to pay over time or after your case is complete.

The cost of filing with the court is the one thing that is set in stone. As of 2020, Georgia filing fees are as follows:

• Chapter 7 Bankruptcy: $338
• Chapters 9, 11, and 15 Bankruptcy: $1,738
• Chapter 11 Railroad Bankruptcy: $1,571
• Chapter 12: $278
• Chapter 13: $313

There may be additional fees related to the conversion of a bankruptcy case if you file one and end up having to switch to another type along the way. Appeals, motions to reopen, and filing fees for case splitting will also have to be factored in and have their own court costs. Your lawyer can assist you with figuring out what you’ll spend on your case.

 

12. Will I be able to buy a house or car after bankruptcy?

A bankruptcy on your credit report does not automatically mean that you will not be able to buy a car or a house or get other loans or lines of credit. It will be harder, of course, but many lenders now have credit repair and renewal programs that are designed to help people who are recovering from something like bankruptcy. The more time that passes between when your case is finalized and when you attempt to buy a house or car, the better.

You may have different lending requirements, such as a larger downpayment or the provision of some type of collateral. You may also have limited options for lenders or places that you can work with to buy larger items like this, but there will be some options out there.

 

13. Who will know that I filed for bankruptcy in Georgia?

Some people don’t want to file for bankruptcy because of the stigma attached to it. Having to declare bankruptcy and essentially restart your financial life can be a stressful process. Many people don’t want anyone to know that they’ve gone through the process or that they are going to file.

The good news is that the only people who will know that you are filing are you, the Georgia courts, your bankruptcy lawyer, any creditors involved, and those who are paying attention and reading the legal news docket (not very many). Some states don’t even require you to put it on public record that you’re filing, so that last one may not apply everywhere.

The bottom line? You can file for bankruptcy discreetly. Talk to your attorney and let them walk you through the process.

 

Final Thoughts

Bankruptcy is a complex process, even for those who are familiar with legal matters. There are so many different requirements to consider, factors involved in choosing what type of bankruptcy to file, and things to think about that people often get overwhelmed. Hopefully, now you have a better understanding of the process and what to expect.

If you’re considering bankruptcy or want to learn more from a firsthand consultation, contact the team at Morgan & Morgan today. We have years of experience in bankruptcy law and can help you get the best outcome in your case, no matter how much debt you have. Call us at 706-843-2905 to discuss your needs and find out how our team can help.

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