Chapter 7 in Georgia: What to Know

Chapter 7 in Georgia: What to Know

Depending on your specific financial pitfalls and financial history, filing for Chapter 7 in Georgia may or may not be the best choice for you to become debt-free. Get the facts about filing Chapter 7 bankruptcy specific to the state of Georgia.

Valuable information is highlighted on what this chapter of bankruptcy entails, what you stand to lose when you file Chapter 7, and some tricks for filing Chapter 7 in Georgia state. We will also guide you on why CMC Law is your best choice for legal counsel in and around Atlanta regarding a Chapter 7 Georgia bankruptcy.

Demystifying Bankruptcy

Chapter 7 bankruptcy, prevalently filed in Georgia, is a legal remedy enabling individuals and businesses to wipe out their debts and start anew. It is designed for those grappling with financial difficulties and unable to repay their obligations. The process involves liquidating assets to repay creditors, with a bankruptcy trustee overseeing the case and managing the sale of non-exempt assets.

While filing Chapter 7 in Georgia offers immediate relief from creditor harassment, wage garnishment, and other collection activities, it’s crucial to understand what you stand to lose when you file Chapter 7. Consult an experienced bankruptcy lawyer to understand the implications of filing for Chapter 7 in Georgia.

How is Chapter 7 Bankruptcy Different from Chapter 11 or Chapter 13?

  • A Chapter 7 trustee is appointed to convert the debtor’s assets into cash for distribution among creditors.
  • There is no repayment plan created for the debtor in a Chapter 7 bankruptcy case as one does in Chapter 13. Instead, the bankruptcy trustee is required to sell the debtor’s nonexempt assets and use this money to pay claims holders (creditors) by the provisions of the U.S. Bankruptcy Code.
  • Debt liquidation under Chapter 7 is available to individuals who cannot make regular, monthly, payments toward their debts.
  • Businesses or high-income earners looking to terminate their enterprises may file for Chapter 7 in Georgia.
  • Chapter 7 provides relief to debtors no matter how much debt they owe or whether a debtor is solvent or insolvent.

Federal Tax Refunds During Bankruptcy

You can receive tax refunds while in bankruptcy, but they may be subject to delay, turnover requests by your trustee, or used to pay off your tax debts. Is all or part of the reason you are filing Chapter 7 bankruptcy because of overdue federal tax debt? You may need to increase your withholding and/or your estimated tax payments. Get help determining the proper withholding by seeking legal counsel from an experienced bankruptcy attorney. You can use the IRS Tax Withholding Estimator in the meantime for help.


After your Chapter 7 bankruptcy filing is complete, you will receive a discharge of debt.

A discharge releases you (the debtor) from personal liability for certain dischargeable debts. Some taxes may be dischargeable. Federal tax debt being discharged depends on the unique facts and circumstances of each bankruptcy case. Remember, the best way to successfully file bankruptcy with the highest chance of debt discharge is to hire legal counsel. Consult your bankruptcy attorney to determine which tax debts may be discharged.

Tricks for Filing Chapter 7 in Georgia

  • Take full advantage of the U.S. bankruptcy laws and get the fresh start you want by not continuing to incur additional debt after you file for Chapter 7 in Georgia.
  • Eligibility for Chapter 7 requires passing the means test, which compares your income to Georgia’s median income. If your income falls below the median, you may qualify.
  • Make sure to sign up for credit counseling from an approved agency within 180 days before filing Chapter 7. A seasoned bankruptcy lawyer in Georgia can help you navigate the process efficiently, assist in gathering necessary documents, and provide guidance throughout the entire Chapter 7 bankruptcy process.

Bankruptcy Exemptions

Knowing what you lose when you file Chapter 7 is vital. Exemptions are laws that protect certain property types from liquidation, ensuring you can retain essential assets after bankruptcy. These exemptions in Georgia cover a broad range of properties, allowing you to retain ownership while eliminating qualifying debts.

Engaging an experienced bankruptcy attorney ensures you maximize the exemptions available to you, providing guidance throughout the bankruptcy process, protecting your assets, and helping you achieve a fresh financial start.

Chapter 7 Bankruptcy Process and Timeline

The Chapter 7 bankruptcy process in Georgia involves preparing and filing a petition with the bankruptcy court, providing detailed information about your financial situation. Once your petition is filed, an automatic stay comes into effect, halting all collection efforts by creditors.

While the Chapter 7 bankruptcy process in Georgia is generally straightforward, potential issues may arise. It is essential to have a knowledgeable bankruptcy attorney by your side who understands the bankruptcy laws to navigate these challenges and ensure the best possible outcome for your case.

Understand that you are most definitely not going to lose everything you own, one of the biggest myths of filing for bankruptcy. Specifically in Georgia, most people tend to keep everything they own at the time of filing for bankruptcy. Most importantly, working with a bankruptcy attorney allows for the highest rate of successful bankruptcy filing.

Choosing an Attorney for Chapter 7 in Georgia

When planning to file Chapter 7 in Georgia, finding a trustworthy and experienced bankruptcy attorney to guide you is crucial. A specialized Chapter 7 bankruptcy attorney can offer numerous benefits and enhance your chances of a successful outcome.

At CMC Law, one of the most experienced and reputable Chapter 7 bankruptcy attorneys is the founder. Charles M. Clapp is dedicated to helping individuals and families achieve financial freedom.

Here at CMC Law, we are committed to helping Georgians understand the complexities of bankruptcy law and how to utilize it to discharge debts, regain control of their finances, and embark on a debt-free lifestyle.

Contact us today to schedule a consultation and take the first step toward a brighter financial future with a licensed and seasoned bankruptcy attorney fighting for you.