Bankruptcy laws in Georgia
Today’s economy has taken a devastating toll on the middle class, resulting in more Americans filing bankruptcy. America is finding it increasingly more difficult to stay above water financially. It is estimated a new bankruptcy case is filed every ninety seconds. That is absolutely astonishing! If you are living in Georgia and one of the statistics, don’t feel alone. This article will help to peel down the bankruptcy laws in Georgia.
Chapter 7 bankruptcy, or liquidation, involves the selling of your assets, of which are not exempt, in order to pay off debt. Unsecured debt, meaning credit cards, medical bills and any debt that is not attached to personal property may be discharged in Chapter 7 bankruptcy. However, your non-exempt property will be sold in order to pay your creditors.
Property items exempt from Chapter 7 proceedings, according to the bankruptcy laws in Georgia are: $10,000.00 for real or personal property for a single person, $20,000.00 for a married couple; seventy five percent of your weekly earnings; up to $3,500.00 in interest for all motor vehicles; $1,500.00 for all manuals and tools of your trade; up to $300.00 in value for any single item; up to $5,000.00 in home furnishings, clothing in good condition, appliances, books, animals, crops and musical equipment. Certain retirement and insurance benefits may be totally exempt; check with an attorney for the eligibility of the latter.
If you would rather not risk losing property according to the bankruptcy laws of Georgia regarding Chapter 7 and you have an income, you should consider filing Chapter 13 bankruptcy instead.
The idea behind Chapter 13 bankruptcy protection is to allow the debtor to keep all his or her property. If you have money left over after paying your monthly living expenses and can afford to make an effort towards your debt, Chapter 13 is the way to go. This form of bankruptcy allows you to devise a repayment plan that is affordable. The court will work with you on this once you file. The plan will consist of one monthly payment made to the court appointed trustee who will then distribute the agreed upon amounts to each creditor. Any outstanding debt, if any, will be written off at the end of the repayment period. The benefit of filing Chapter 13 is you will not have any of your property repossessed or sold out from under you.
Do your homework when considering filing bankruptcy. The bankruptcy laws of Georgia carry a few twists to the overall definition as set by federal law. The laws are complex. Do not go at it alone; hire a qualified bankruptcy attorney to guide and represent you through the process.