Chapter 7 bankruptcy is sometimes called “liquidation” bankruptcy because it cancels most types of debts. In Georgia, 91% of people who file bankruptcy, file under Chapter 7 Bankruptcy. During a Chapter 7 bankruptcy the bankruptcy trustee of the court liquidates your non-exempt property and distributes the proceeds to your creditors. You get to keep your exempt property.
For a chapter 7 bankruptcy, you will file a petition for bankruptcy. You will also need to file a few additional document within 15 days. These additional documents include:
- a list of your creditors,
- a list of your assets, debts, income, and financial transactions prior to filing the bankruptcy,
- copies of your most recent federal tax return,
- copies of your wage stubs,
- a list of property you are claiming as exempt (that is property you are entitled to keep even though you are filing for bankruptcy),
- information on what you plan to do with property that serves as collateral for a loan (such as a car or home),
- proof that you have completed your pre-filing bankruptcy credit counseling,
- and later in your bankruptcy case, proof you have competed budget counseling.
But most importantly you will be asked to compute your gross income during the six months prior to your bankruptcy filing date and compare that to the median income for your state. If your income is more than the median, you are asked a series of questions (called the “bankruptcy means test”) to determine if you could file a chapter 13 bankruptcy and pay some of your unsecured debts over time. Following the links below will give you some general bankruptcy information to consider.
- Bankruptcy Property Exemptions
- Bankruptcy Credit Counseling
- The Automatic Bankruptcy Stay
- The Bankruptcy Trustee
- Bankruptcy Meeting of Creditors
- Creditor Harassment
Find out if a chapter 7 bankruptcy is the best answer to your debt problems and have an Attorney run a FREE “means test”. Contact the Remboldt Law Firm, LLC at 404-348-4081 to schedule a FREE Attorney consultation and see if the “bankruptcy means test” will allow for a chapter 7 bankruptcy.