Chapter 7 bankruptcy eliminates most unsecured debts, like credit cards. Americans have over $1 trillion in credit card debt. Furthermore, the average credit card interest rate is over 20 percent. In other words, most Georgia families have more credit card debt than they can repay. These households basically have two choices. They can wait and hope things get better. Or, they can file Chapter 7 bankruptcy and take control of their financial futures.

Chapter 7’s Automatic Stay immediately stops things like repossession, wage garnishment, foreclosure, and creditor lawsuits. Then, in as little as six months later, a bankruptcy judge discharges most credit card and other unsecured debt. “Discharge” means the judge erases the legal obligation to repay the obligation.

There are some downsides to Chapter 7 as well. The process is complex, and filing bankruptcy will reduce your credit score. A Georgia bankruptcy lawyer greatly minimizes these downsides. An attorney handles the entire process form start to finish. That includes any roadblocks which pop up along the way. Furthermore, a Georgia bankruptcy lawyer helps your family maximize its fresh financial start.

Do I Qualify for Chapter 7 Bankruptcy in GA?

There are formal and informal bankruptcy qualifications. Most people meet both, so they are able to file Chapter 7.

All filers must complete a debt counselling course before they file. They must also complete a budgeting class after they file. These classes, which are typically available online, only take a few minutes and only cost a few dollars.

The means test is the most significant formal Chapter 7 qualification. Your annual household income must be below average. For a Georgia family of four, as of November 1, 2020, that amount is $91,161. Even if your income is above this amount, you still have options, if you work with a Georgia bankruptcy lawyer.

Chapter 7 has some informal qualifications as well. For example, the debtor’s expenses, which are listed in Schedule J, should exceed the debtor’s income, which is listed in Schedule I. If that’s not true, the trustee (person who oversees the bankruptcy for the judge) usually scrutinizes the filing even more closely.

How Do I File Chapter 7 Bankruptcy: Getting Started

You must have lived in the Peachtree State for at least 730 days (two years) to file bankruptcy in Georgia. If you do not meet the residency requirement, you can typically file bankruptcy in your previous state of residence.

Chapter 7’s petition and schedules are voluminous. A tax filing for a midsized corporation is about the same size, and about as detailed, as a Chapter 7 bankruptcy filing. In an emergency, such as a pending foreclosure or eviction, a Georgia bankruptcy lawyer can file an emergency petition. This emergency filing is about as big as, and less detailed than, an individual 1040 tax return.

Filing is only part of the equation. Debtors must cooperate with the trustee. That usually means producing documents. An experienced Georgia bankruptcy lawyer usually knows what the trustee will request before s/he asks. So, you do not have to scramble for documents to meet a deadline.

The 341 Meeting with Georgia Bankruptcy Lawyers

Trustees review tax returns and other documents as they prepare for the 341 meeting. This meeting usually happens about six weeks after debtors file their voluntary petitions.

Chapter 7 341 meetings are usually rather straightforward, especially if the debtor has a Georgia bankruptcy lawyer. As mentioned, attorneys help debtors prepare for these meetings. That preparation includes more than document production. Attorneys anticipate trustee questions.

Debtors must also provide proof of identity at the 341 meeting. This proof is usually a Social Security card and a state-issued photo ID card. If these items are unavailable, a Georgia bankruptcy lawyer can usually make alternative arrangements.

What Are Priority Unsecured Debts?

Some unsecured debts are only dischargeable in certain situations. Back taxes must be at least three years old. Student loans are only dischargeable if the debtor has an undue hardship. A Georgia bankruptcy lawyer can usually obtain at least a partial discharge in these situations, even if the debtor does not fully qualify for relief.

A few other unsecured debts are nondischargeable. Child support and alimony are nondischargeable, although bankruptcy’s Automatic Stay halts things like lien placement and bank account levy. Additionally, if there is clear evidence of fraud, the unsecured debt is probably nondischargeable.

When you file Chapter 7, you get a fresh start. For a free consultation with an experienced Georgia bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. Convenient payment plans are available.

Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.