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Bankruptcy
Individuals who are on the verge of financial ruin may seek protection through federal bankruptcy laws available throughout the United States. There is no magic formula for deciding when bankruptcy is the right choice. It is an option you might consider if you:
- Are paying only minimum amounts on your bills
- Can’t budget yourself out of debt within five years
- Are getting notices that your mortgage or loans are being foreclosed
- Have had a severe financial setback, such as losing your job or a major client, a divorce or a costly illness
Bankruptcy does not get rid of all debts. You are still responsible for:
- Alimony
- Child support
- Most recent back taxes
- Most student loans
- Recent large purchases of more than $500 for luxury goods bought
within 90 days of filing - Fines or penalties of government agencies
- Fraudulent debts
- Cash advances of $750 within 70 days of filing
As a consumer, you can file for bankruptcy in Georgia under either:
- Chapter 7 (Straight Bankruptcy) to wipe out all debts except those listed and get an immediate fresh start or
- Chapter 13 (Wage Earner Bankruptcy) to set up a repayment plan to pay back your debts over several years’ time.
Other Resources:
-
Official Bankruptcy Forms (uscourts.gov)
-
Bankruptcy (State Bar of GA)
-
Is Bankruptcy Right for You? (Atlanta Legal Aid Society)
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