Chapter 7 bankruptcy is a legal procedure that can help you eliminate unsecured debts. In order to file, you will need to meet certain requirements. You will need to attend credit counseling or a financial management course. These courses are required under Georgia law. The courses must be approved by a Bankruptcy Trustee.
To qualify for bankruptcy, you will need to pass a means test. This test will determine if your income is high enough to repay your debts. If you earn less than the median income for your state, you will not be able to qualify for bankruptcy.
A bankruptcy lawyer can help you with this test. They can also provide you with information on pre-filing credit counseling. Credit counseling usually takes place online. Your attorney will be able to tell you what you need to do to qualify for Chapter 7.
After you pass the means test, you will need to file a bankruptcy petition. A bankruptcy trustee will review your assets and debts. Nonexempt assets will be sold to pay your creditors. Some assets are exempt from sale, such as real estate, cars, and personal property.
The court will then issue an automatic stay, which protects you from debt collection efforts. In addition, you will not be contacted by debt collectors while your case is pending. However, once you have discharged your debts, you will no longer have a stay.
After you have filed your Chapter 7 bankruptcy, you will have a few weeks to respond to a lawsuit from your creditors. During this time, you may be unable to make payments, as you may not be able to afford them. It is important to remember that you will lose your assets if you do not respond.
Another important factor to consider is the statute of limitations. In Georgia, the statute of limitations on oral accounts and written contracts is four years. There are a few exceptions to this rule. For example, credit card debt has a six year statute of limitation. If you have a lien against a car, it can be discharged in a Chapter 7 bankruptcy.
Besides the statute of limitations, you will have to follow other Bankruptcy law in Georgia requirements. For example, you will need to be a resident of Georgia for at least two years to file for bankruptcy. You must also have attended credit counseling or a financial management course before you can file.
While there are many different types of bankruptcy, Chapter 7 is usually the most common. It is also the quickest way to get rid of unsecured debt. It can give you a fresh start.
Chapter 7 allows you to discharge most unsecured debt. You will still have to pay some secured debt, however. Some of these debts include student loans, medical bills, and credit card debt. Other types of debt are not dischargeable.
Most people think that filing for bankruptcy means losing everything. But, this is not the case. Once your unsecured debts are discharged, you can then sell any nonexempt assets to pay the remaining debt.
