Under Georgia law, individuals who wish to file for bankruptcy must first participate in credit counseling from an approved credit counseling agency within 180 days prior to the filing date of bankruptcy. Additionally, Georgia follows the federal bankruptcy laws that require individuals to meet certain income criteria in order to file for Chapter 7 bankruptcy, which is the most common form of personal bankruptcy.
To file for Chapter 7 bankruptcy, individuals must first pass the “means test” which compares their income to the median income for households of the same size in Georgia. If the individual’s income is below the median income, they may be eligible to file for Chapter 7 bankruptcy. However, if their income is above the median, they must pass another test to determine if they have enough disposable income to repay some of their debts under a Chapter 13 bankruptcy plan.
In addition to meeting the income criteria, individuals filing for bankruptcy must also have completed a debtor education course from an approved credit counseling agency within 60 days after filing the bankruptcy petition.
It is important to note that there are limitations to the types of debts that can be discharged in bankruptcy, such as certain tax debts, student loans and child support obligations. It is highly recommended that individuals considering bankruptcy seek the advice of a licensed attorney to ensure their specific situation meets the legal requirements for filing and to fully understand the consequences of filing for bankruptcy.
By