Georgia Bankruptcy Laws

The state of Georgia is divided into three bankruptcy districts: Georgia Middle Bankruptcy Court, Georgia Northern Bankruptcy Court and Georgia Southern Bankruptcy Court. Over 99% of the bankruptcy cases filed in Georgia by individuals or families are filed as either Chapter 7 liquidation or Chapter 13 bill consolidation. Non-business individuals can file Chap 11 BK, also known as reorganization, but it rarely makes sense to do so because of the cost and complexity.

Find a Bankruptcy Lawyer in Georgia with our debt relief directory and get a free BK evalution for a loan modification, chapter 7, 11, 13 or debt settlement that could lead to a fresh start. Find out from a local attorney if bankruptcy is the best for your situation.

Georgia Bankruptcy Exemptions
Exemptions refer to property a debtor can keep under chapter 7 bankruptcy. According to Lawyers.com, under Georgia bankruptcy laws, you can keep:

• Your interest in real or personal property that you or your dependents use as a residence, or in a cooperative that owns property that you or your dependents use as a residence, or a burial plot, up to $10,000 in value ($20,000 if you are married and you and your spouse jointly file for bankruptcy), but only if you don't claim the homestead exemption
• Household furnishings and goods, clothes, appliances, books, animals, crops, and musical instruments, up to $300 in value per item, but not to exceed $5,000 in total value
• Jewelry, up to $500 in total value
• Any professionally prescribed health aids
• Social security, unemployment compensation or local public assistance benefits
• Veterans' benefits
• Disability, illness or unemployment benefits
• Alimony, support or separate maintenance as needed for support
• Pensions and individual retirement accounts
• Professional books and tools of your trade, up to $1,500 in value
• Crime victims' compensation
• Payment for personal injuries (not including pain and suffering or compensation for actual pecuniary loss), up to $10,000
• Payment for compensation for loss of future earnings as needed for support
• Payment for the wrongful death of a person you were dependent upon as needed for support
• Payment under a life insurance contract on the life of a person you were dependent upon as needed for support
• Any unmatured life insurance contract except a credit life insurance contract
• Your aggregate interest in the loan value on any unmatured insurance contract, up to $2,000
• Your aggregate interest, up to $600 in value in any property, plus any unused portion of the homestead exemption to a maximum of $5,000

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

Changes to Georgia Bankruptcies under new Bankuptcy Laws
According to Jonathan Ginsberg of Ginsberg Law Offices in Atlanta , Georgia chapter 7 bankruptcy laws and Georgia chapter 13 bankruptcy laws have changed a lot since October 2005, when the nation's bankruptcy laws were totally overhauled. Bankruptcy filers as well as their attorneys are now subject to very strict reporting and accuracy guidelines.

The bankruptcy Court filing fee in all Chapter 7 cases is $274. Plus, you have to pay attorney fees, so the total will typically around $1,500 to $2,300. The filing fee cost for Chapter 13 is $189, which must be paid up front. Plus, you will generally pay a base fee of around $2,500 to your attorney. The Judge assigned to your case must approve all fees. If a case becomes unusually complicated or requires Court attendance at numerous hearings, your attorney may ask the Judge to approve additional fees.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.