Almost anyone can file a bankruptcy case, however there are restrictions. There are specific debt levels for filing under Chapter 13 and if you file under Chapter 7, in certain situations your case may be converted to Chapter 13 if it appears you have sufficient income (or means) to repay some of your debts.
Further, if you have been in a previous bankruptcy case that was dismissed, your eligibility to file another bankruptcy case or obtain the benefit of the automatic stay in a subsequent case could be affected. In all cases, it is advisable to consult with an experienced bankruptcy attorney in making this decision so that you understand your rights and obligations.
How Do I Qualify for Chapter 7 Bankruptcy in Georgia?
To qualify to file a Chapter 7 bankruptcy case in Georgia, you must have not filed a Chapter 7 bankruptcy less than eight years ago and must also meet an income test that is referred to as the “means test.”
The means test uses the median income for your household size as a threshold for qualifying to file Chapter 7. If you and your spouse earn less than the median income for your household size within the six months preceding filing, you qualify to file Chapter 7.
Median income in Georgia:
- Single person household: $46,810
- Two-person household: $61,794
- Three-person household: $70,863
- Four-person household $80,510
Even if you do not earn less than the median income for your household size, you may still qualify to file for a Chapter 7 in Georgia because deductions for mortgage payments, medical bills, health insurance, childcare, taxes, and other expenses are allowable.
What is Bankruptcy?
Bankruptcy is a legal proceeding under federal law that allows a debtor who is having serious financial difficulties to obtain financial relief. Bankruptcy allows debtors to either eliminate their debts or repay them under the protection of the bankruptcy court.
A debt may be either secured or unsecured. Secured debts are those that have collateral attached to them such as your house or car. For example, if you obtain a mortgage on your house, your house is considered collateral for your mortgage. In the event your loan is not paid back, the lender may foreclose or repossess your property to recover the owed money.
We invite you to contact us either online or by phone at 404-919-7296 to schedule a FREE confidential consultation to review your personal financial situation and what options we can provide to protect you from creditors. For additional information about bankruptcy please also check out our YouTube Channel which has up to date vlogs on issues related to personal bankruptcy.