Even high-income earners have faced financial hardships due to the pandemic. Recently, many debtors have filed for Chapter 7 bankruptcy. With an unprecedented number of layoffs and emergencies continuing to impact the country, you may be struggling to meet your fiscal responsibilities after a lengthy period of financial security. While this could leave you feeling vulnerable about your future, you might qualify for a Chapter 7 bankruptcy in Georgia.
At CMC Law, we provide the expertise and tools you need to make informed legal decisions about your finances and the bankruptcy process. Learn how to settle your debt and get back to living the life you once knew.
What is Filing Chapter 7 Bankruptcy in Georgia?
Chapter 7 bankruptcy in Atlanta is a type of liquidation bankruptcy that enables you to discharge most unsecured debts so that you are not liable for repaying your creditors. Examples include personal loans, credit card debt, lawsuit judgments, and medical bills. There are certain types of debts that cannot be classified as unsecured debt including alimony payments and student loans. It is not always guaranteed that you will be able to absolve all your unsecured debts with Chapter 7 bankruptcy. Although, it has the potential to grant you the relief you need to rebuild your finances and create a debt management plan. However, as a high-income earner, it can be difficult to qualify for it.
Qualifying in Atlanta to File Bankruptcy
To be eligible for Chapter 7 bankruptcy in Atlanta, you must pass the means test. This is a calculation in which your average income from the previous six months must be lower than the median income for your household size. In Atlanta, the median income for a household of one is $40,546 and $55,061 for a household of two.
As a high-income earner, your average outcome may exceed these median amounts. In this situation, you will need to deduct other expenses to demonstrate that you do not have the disposable income available to repay your creditors. These deductions can include healthcare, childcare, mortgages, taxes, car payments, nonexempt property, mandatory retirement contributions, education costs for dependents and charitable contributions.
If you can prove that you do not have any remaining discretionary income after these expenses, then you will qualify for a bankruptcy case in Atlanta. However, you must demonstrate to the court that you are filing bankruptcy in good faith by abstaining from purchasing luxury items and unnecessary services while handling your unsecured debts.
If you are still unable to pass the means test after making those deductions, there are other considerations that could exempt you from the test. If you are dealing with business debts instead of personal debts, you will be exempt from the means test. These debts can include loans for purchasing inventory or credit card bills to buy supplies and other business-related expenses. Also, as a National Guard or military member that is currently on active duty or was on active duty in the 540 days leading up to your Chapter 7 bankruptcy in Atlanta, you will be exempt from the means test.
Regain Your Financial Freedom with Chapter 7 Bankruptcy in Georgia
As an average monthly income high-earner, you may not feel you are in the best position to seek the fiscal relief you need. However, with the help of the experienced bankruptcy attorneys at CMC Law, you can file Chapter 7 bankruptcy in Georgia to consolidate your debt and restore your financial independence.