For About Bancruptcy For Individuals :

• Bankruptcy protects those with serious finalcial problems from creditors.
• The most common beneficiaries are credit card debtors.
• It is possible to declare Chapter 7 Bankruptcy only once in any six-year period.
• Debtors with a low income and with very few non-exempt assets may find that Chapter 7 Bankruptcy is a good option.
• Those with regular income and don't meet the filing criteria for Chapter 7 Bankruptcy have a choice to contribute towards a debt reorganization in a Chapter 13 Bankruptcy.

You can file for Bankruptcy in Georgia under:

• Chapter 7 "Straight Bankruptcy" to wipe out debts and get an immediate fresh start.
• Chapter 13 "Reorganization" Bankruptcy sets up a debt repayment plan over several years' time.

Chapter 7 Bankruptcy and Chapter 13 Bankruptcy:

• The US Bankruptcy laws underwent significant changes in 2005, but filing for Bankruptcy can still help individuals overcome serious money problems. An attorney can assist you in decision to determine which type of Bankruptcy is best suited for your needs, if you qualify for both. With Chapter 7, you will have your debts forgiven. With Chapter 13, you will still have to pay your debts, though the amount may be lowered.
• Chapter 7 Bankruptcy ("Straight Bankruptcy") helps consumers to write-off debt in the space of three to six months.
• Chapter 13 Bankruptcy ("Reorganization") helps those with non-exempt assets to restructure debt.

Chapter 7 Bankruptcy ("Straight Bankruptcy")

Individuals filing for Chapter 7 Bankruptcy provide a list of their non-exempt assets to a trustee. These are then sold and the proceeds are paid to creditors. Though an insolvent filing for Bankruptcy under Chapter 7 have very few assets is able to escape any debt problems and become debt-free very quickly.

Chapter 7 Bankruptcy and the 'Means Test' clause

The Chapter 7 Bankruptcy requires the applicant to pass a "Means Test," which requires that the debtor show that during the preceding six months his or her income has been below the median income level for the state of Georgia (or in the state where the debtor works and resides if outside of Georgia). Filing for Bankruptcy under Chapter 7 is unlikely to be approved by a court of law if an applicant has a high disposable income or non-exempt assets that could be distributed to creditors. In practice most people prefer Chapter 13 Bankruptcy or debt management as an alternative debt solution. Chapter 13 Bankruptcy ("Reorganization")

• Chapter 13 Bankruptcy seeks to reschedule and reorganize the payment of the debtor’s debts over a period of 3 to 5 years.
• Chapter 13 Bankruptcy provides protection from further debt collection or foreclosure.
• Chapter 13 Bankruptcy generally has a lesser adverse effect on the debtor’s credit score because the debtor’s creditors get paid.

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