Chapter 7 Bankruptcy is the most common form of personal bankruptcy in Georgia. Hundreds of us use Chapter 7 bankruptcy to rid ourselves of insurmountable debts every year. In the state of Georgia, Chapter 7 bankruptcy essentially may allow you to wipe out many of your personal debts, and start over with a clean slate.

Requirements for Chapter 7 Bankruptcy in Georgia

One of the key components to filing a chapter 7 in Georgia is qualifying through a means test. This test measures your income and your debts against standards set for the state, and determines whether your debts are considered sever enough to allow you to file bankruptcy. If your income does not allow you to pay your debts and maintain a reasonable standard of living, you may qualify to file for chapter 7 bankruptcy. If your income is sufficient for you to pay your debts and also continue living on what’s left, you may not qualify.

Speak to an attorney to discuss how to take this test, and get an idea of whether or not you may qualify.

Read this article that addresses a common question about bankruptcy in Georgia: Can I Rent an Apartment if I File for Bankruptcy? Many of our readers plan to move to a less expensive apartment, or move out of a home that they own, after bankruptcy. Being able to find more affordable housing is important.

Debts Eliminated through a Chapter 7 Bankruptcy

The debts eliminated through a chapter 7 filing can vary from case to case, so it is important to talk to an attorney to determine which of your debts can be eliminated, and also generally whether chapter 7 seems to be the right fit for your situation.

In general, many unsecured debts can often be eliminated. Credit card debts, personal loans and medical debts are common reasons people decide to file for chapter 7 bankruptcy.

Secured debts, like mortgages and car loans, can often be eliminated, but will often require giving up the asset that secures the loan (a car or house, for example).

Some other debts may not be addressed by a chapter 7. These debts vary, but may include student loans or back taxes owed to the state or IRS.