Working with the Bankruptcy Laws in GA

Like everyone else across the country, many people in GA are finding themselves having financial problems as the economy goes bad. Issues include unexpected illness, inability to find a job, job loss, and other problems that cause us to depend on credit cards and other credit forms to live. For those who just can’t seem to get ahead, it is important to learn how to work with the bankruptcy laws in GA.

If you live in GA, you must pass a qualifying test to file for bankruptcy. Upon passing the test, you may file for chapter 7 bankruptcy. This means test compares the family’s income to the state’s median family income for the same number of members. If the income is under the state’s median, bankruptcy laws in GA allow you to file. In 2010, a single debtor had a median income of $40,546.00. Families of two people have a median income of $55,061.00. A family of three’s income was $60,887.00. A family of four can expect a median income of $68,258.00. For each additional family member, $7,500.00 could be added to the family’s median income. The monthly disposable income would then be calculated. This is monthly income minus the allowed monthly expenses. Disposable income that was the $100.00 or less would enable the debtor to file. If the income is more than $100.00, but would not be sufficient to pay at least a quarter of the debtor’s debts over the next five years, bankruptcy laws in GA allow the debtor to file. Chapter 13 bankruptcy is an option for those who fail the means test, ands would include of repaying the debts for the next 3 to 5 years.

If the chapter 7 petition is filed, a trustee is appointed to the case. The trustee administers the case and represents the creditors’ interests. The debtor is required to file schedules that detail income, exempt property, expenses, creditors, and nonexempt property to the bankruptcy court. The trustee will collect the debtor’s property and sell any nonexempt property in order to raise money to pay the creditors. Property that is considered exempt cannot be sold, and will be given to the debtor to keep. At the conclusion of this process, the trustee recommends that unsecured debts against the debtor should be discharged.

For debtors looking to work with the bankruptcy laws in GA, understanding the state’s exception is also important. The homestead can be exempt up to $10,000 for a single person. If the debtors are a married couple, $20,000.00 is exempt for the homestead. A vehicle is exempt up to $3,500.00. Household goods, clothing, appliances, musical instruments, furniture, books, and musical instruments are exempt. In addition, crops up $5,000.00 dollars, health aids, lost earning recoveries up to $7,500.00 for the future, $10,000.00 worth of personal injury recoveries, a burial plot instead of homestead, pensions, wages, child support and alimony, insurance, public benefits, and tools of the trade are all considered exempt.

If you’re considering filing for bankruptcy, it is important to contact an attorney or legal firm who has experience working with the bankruptcy laws in GA. Although it is stressful, talking to the right people can help ease the situation and help you get your credit back where you want it to be.