Georgia Bankruptcy
Georgia Bankruptcy Law
Bankruptcy Code and Exemptions...
Although Federal Bankruptcy Code and U.S. Bankruptcy Laws apply to everyone, each state has its own Bankruptcy Code and Rules of Bankruptcy Property Exemption that apply specifically in that state.
Georgia Bankruptcy Law
Georgia Bankruptcy Exemptions and Claim Priority...
Georgia is expected to be particularly hard hit by the new bankruptcy laws amendments. Specifically, the new means testing requirement became effective in October 2005, and restricts qualification for Chapter to individuals who earn less than the state median income.
In the past, almost anyone could file Chapter 7, and in fact, about 75% of all people who filed preferred Chapter 7. Today however, because of the means testing requirement, more than half of all people seeking to file will be excluded from Chapter 7 discharges. The greater percentage is due to the rarity of the top 10% of state residents filing.
In Chapter 13 cases, Georgia state exemptions also play a role, but less central than in Chapter 7 cases. In Chapter 13, debtors must prove, to the satisfaction of the court, that creditors are dealt with in manner that is at least as generous as would be required if the cases where filed under Chapter 7. In practice, this requirement must then rely upon the determination of applicable state law exemptions.
Other Georgia state law provisions also play a vital role in all cases filed. Liability, property ownership, and collection procedures area all matters determined by state law. Additionally, liability for child support, fines, and state taxes are special items determined under state law that are considered "priority" items.
Georgia Bankruptcy Exemption Changes
When filing Chapter 7, the Georgia bankruptcy exemption law is the sole source of allowed property retained. A few states permit debtors to choose between Code exemptions or state law, yet the State of Georgia does not permit this option. Values provided by Georgia exemptions are low by national standards, and replete with legal snares that could trip unsuspected homeowners.
For most debtors, the assistance of a Georgia attorney who is acutely familiar with recent new law reform changes is essential to protect the Georgia homestead exemption and may require filing a designation to ensure enforceability.
Any attorney may prepare a formal designation. However, because of recent changes in federal law, proper preparation and timing are vital if considering Chapter 7 or 13. Georgia bankruptcy attorneys who are familiar with these changes and the GA Real Property Code amendments are the best source of current information and legal help.
The State Bar also maintains a list of Georgia bankruptcy attorneys in Atlanta, Savannah, and throughout the state.
Pre-Bankruptcy Planning and Preparation
Pre-bankruptcy planning is a delicate topic with many transactions prohibited, but with the assistance of a progressive bankruptcy attorney, other allowable exemptions may be identified.
In practice, most people who file for bankruptcy will actually improve their credit rating within 18 months or less. In fact, in a chapter 13 filing, credit will begin to improve once late payment reports stop, and secured loans and credit lines begin reflecting timely payments.
Overall, filing for bankruptcy can, for many Americans in many different circumstances, be an important and integral step toward financial recovery and new found fiscal stability. Ultimately, bankruptcy creates opportunities and improves net worth, so long as the decision to file was made wisely.
To learn more about Georgia State Bankruptcy Exemptions, simply go to our U.S. Bankruptcy Exemptions page.
In most states you can legally protect your personal residence in a bankruptcy. The interesting thing is homeowners are treated differently from state to state.
Learn more about the Homestead Act and how it affects you.
Georgia Bankruptcy Code
All Georgia Bankruptcy cases are governed by Title 11 of the United States Bankruptcy Code, by U.S. Bankruptcy Rules, and by local Georgia State Bankruptcy Rules promulgated by Georgia court.
The US bankruptcy court websites generally have links to both, the Federal US Bankruptcy Rules and specific Georgia Bankruptcy Code. Clerks in the bankruptcy courts will not give debtors, or even attorneys for debtors, legal advice, including advice about which bankruptcy rules apply to a given case.
Locate a US Bankruptcy Court in your federal judicial district.
Since US Bankruptcy Code and Georgia Bankruptcy Rules are very technical, and since the case load in the US Bankruptcy Courts makes judges very unforgiving of mistakes or missed deadlines, it's highly recommended to seek the advice of an experienced Georgia Bankruptcy Attorney and Certified Credit Counsellor.
The most recent Changes to the Bankruptcy Code and Bankruptcy Rules came about on April 20, 2005 as President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act. This new Bankruptcy Law came into effect October 17, 2005.
Learn more about the 25 Most Recent Changes to Personal Bankruptcy Law and how they affect you.
