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Georgia Bankruptcy FAQs

In today’s time, being in debt and having to file bankruptcy is not an uncommon thing. Some people have debts that they can live with and slowly pay off, however, some people are living with a debt that they cannot pay off and to make matters worse, the debt keeps getting bigger. Some of those people that are in huge amounts of debt do not know that they have bankruptcy as an option, and those that do know simply refuse to use bankruptcy because of the negative views it has gotten from the media. Some people just don’t the benefits that bankruptcy can have; here are some questions we have gotten from people that want to know about bankruptcy.

Should I file for bankruptcy?
If you are currently facing a mountain of debt that you cannot pay off, then you should consider bankruptcy, it can be useful in helping you get a fresh start.

How much does bankruptcy cost?
The cost of bankruptcy depends on what chapter you are filing under and whether you have an attorney or not, also there is the cost of the bankruptcy court.

How many chapters are there in bankruptcy?
There are a couple of chapters to file under; however, the chapters that mainly concern debtors are chapter 7 and chapter 13.

What is Chapter 7 bankruptcy?
In a Chapter 7 bankruptcy, the court will appoint a trustee who will cancel most (if not all) if your debts by selling some of your non-exempt assets to pay your debts. If you have no non-exempt assets then it is likely almost none of your assets will be liquidated.

What does exempt mean?
Exempt means that some assets are protected from the creditors in the bankruptcy. What property can be considered exempt depends on your state.

What is Chapter 13 bankruptcy?
In a chapter 13 bankruptcy instead of selling your assets to pay off your creditors, you make a payment plan to repay your creditors. Once the time frame of the payment plan is over, any leftover debt will be discharged.

Are my retirement plans protected in bankruptcy?
The court has ruled that pension plans, 401(k) plans, and other ERISA qualified plans are typically exempt from bankruptcy.

I’ve heard that after bankruptcy I cannot get credit again, is that true?
No, it is still possible to get credit and rebuild it so that it can be healthy. It will take time and effort on your part but it can be done.

Will everyone know I filed for bankruptcy?
Unless someone is actively looking into your records, then no. It is actually quite difficult for a layperson to find out if someone has filed for bankruptcy.

If I file for bankruptcy, will they stop garnishing my wages?
Yes, when you file the petition for bankruptcy the garnishment on your wages will stop.

Will filing for bankruptcy get me fired?
No, there is a law that protects an employee from getting fired by their employer because they filed bankruptcy.

Does my wife have to file bankruptcy with me?
No, if you file for bankruptcy your spouse is not required to file with you.