petitioning for bankruptcy involves petitioning for assistance. But what are the criteria for Chapter 7 and Chapter 13 eligibility? This guide focuses primarily on Georgia, but many of the suggestions are applicable to other states as well.
Chapter 7 Qualifications
If you fall below the following statistics, you are eligible to register under this category. If you reside in a different state, you can determine your eligibility by determining your median annual income, which is typically between $40,000 and $45,000.
$46,91 Annual Income for 1 Georgia Resident
2 Georgia Residents with an Annual Income of $55,258
3 Georgia Residents: Annual Income $61,104
4 Georgia residents have a yearly income of $68 502
Can You File for Chapter 7 Protection?
According to 2005 changes to the bankruptcy laws, if you exceed these rates, you must petition under Chapter 13. It's not all terrible.
Benefits of Chapter 13
For Georgia residents who exceed the aforementioned limits, this form of personal bankruptcy remains an option. The national limits for unsecured debts are $360,475 and secured debts are $1,081,400. To file, you must be below these, as the majority are.
Because these laws allow nearly everyone to file, you may question what their purpose is. Common Chapter 13 filing motives include falling behind on mortgage payments, rising credit card debt, mounting medical expenses, and unemployment. In most cases, it is advantageous to have a source of income. Under this type of bankruptcy, you are required to repay your debts. Unemployment and foreclosures are problems in Georgia. If you encounter any of the above, you may consider filing a claim.
However, the benefit is time. In the debt repayment plan, you are given three to five years to repay creditors. This is a considerable amount of time to catch up on mortgage payments and other expenses. You must be able to meet these obligations or you risk losing your assets.
Foreclosure
Foreclosure is possibly the greatest advantage of filing. Why? Chapter 13 can save your property, but Chapter 7 cannot. Georgia has a foreclosure problem, but it is less severe than in most other states. However, unemployment is extremely high.
By filing for bankruptcy, you are still required to make payments, but you are given the opportunity to do so instead of having your home repossessed and sold to pay off debts. If you reside in Georgia and are unemployed, Chapter 7 may be your best option. If you have a source of income, Chapter 13 can be beneficial.
Chapter 13 Help
An experienced Georgia bankruptcy attorney can assist you if you're considering filing for Chapter 13 but are uncertain of your eligibility, your ability to afford it, the courts at which you can file, the filing fees, and the like. You want one who specializes in bankruptcy cases and is located in the same district as you, so that they are familiar with the local courts. There are several Georgia courts that handle bankruptcy matters.""
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