Filing for bankruptcy in the state of Georgia could be confusing if you don’t have a lawyer to support you. Anyone who goes through bankruptcy in any state after 2005, is responsible for going through credit counselling within six months before filing for bankruptcy relief. It is important to realize that you must overcome this hurdle before filing for bankruptcy in Georgia.
A bankruptcy in Georgia lawyer can assist you with the gathering of the appropriate paperwork to move forward with filing for Chapter7 or Chapter13 bankruptcy. Your expenses and income must be analyzed in order to verify whether or not you can apply for Chapter7. This is a means test that compares your average income over the six months before filing for bankruptcy, to the median income across Georgia. If your income falls below the median, then you can elect Chapter7. If the income exceeds the median, however, then the remaining portions of the means test are applied to your case to figure out whether or not you need to apply for Chapter13’s proposed repayment plan.
All of your income sources will be evaluated by the court in the process of bankruptcy, whether you file for Chapter7 or Chapter13. It’s a good idea to have as many of these materials organized as possible, to expedite the process. You should collect the deeds to any real estate you own, your tax returns for the last two years and documents for any loans that you have. An experienced bankruptcy in Georgia lawyer can tell you what property you may have that meets the exemption guidelines prior to filing.
The filing fees for Chapter13 bankruptcy are $281 and for Chapter7 bankruptcy is $306. If you are filing for Chapter13 you must go the additional step of generating a proposed repayment plan. Priority claims like back child support and taxes will need to be paid in full, whereas credit card debt and medical bills or other unsecured types of debt will usually be paid in part. You will need to stick to this monthly payment plan over the proposed period in order to keep your property. The right lawyer sitting down with you at the outset of filing for bankruptcy in Georgia can help to answer all of your critical questions and ensure that you have a good understanding of what will happen as your case moves through the court system.