Money stress can take over your life. Bills pile up, collectors call, and you may feel stuck with no way out. But there is a legal way to get relief. This guide explains Georgia Bankruptcy Laws in simple, clear terms. You will learn how bankruptcy works, who can file, what you can keep, and what happens next. This is an easy-to-read Georgia consumer bankruptcy guide made for everyday people who want facts and calm answers.
Georgia bankruptcy rules are derived from both U.S. and state law. The court follows strict steps, but the process is not as scary as it may seem. In fact, many people in Georgia use bankruptcy every year to get a fresh start.
In 2024, more than 28,000 people in Georgia filed for bankruptcy. That is a high number compared to most other states. Most of these filers want to wipe out credit card debt, medical bills, or stop a house foreclosure. They want peace, not stress.
This guide shows you how the system works and what you can expect when you file.
Why People in Georgia File for Bankruptcy
Hard times may come to anyone. In Georgia, families and workers, who are the majority of the population, suffer financially due to:
- Expensive health care
- Loss of a job or reduction of work hours
- Increase in living costs
- Credit card debts
- Car loans, they are not able to pay off
- Mortgage payments that have become too difficult
Bankruptcy court orders creditors to stop all collection activities immediately after a bankruptcy filing. This means that there will be no more calls, no more letters, and no more threats. People who decide to file for bankruptcy cite the “stop” order as their main reason.
- Three court districts are in Georgia:
- North District (area of Atlanta)
- Middle District
- Southern District
- You are required to file a case in the district of your residence.
This handbook is the best Georgia bankruptcy information, written in simple terms so you understand the situation.
Who Can File?
The Income Test Explained in Simple Words
Before filing, you take a short income test called the “means test.” It checks if you qualify for Chapter 7 bankruptcy Georgia (the fast, wipe-out version). The state compares your income to the median income for Georgia families.
Here are the 2025 income limits for the first part of the test:
- One person: about $60,000 a year
- A family of four: about $110,000 a year
If you earn less than this for your family size, you usually qualify for Chapter 7. If you earn more, you may still pass after a deeper review, but most people are moved to Chapter 13 bankruptcy Georgia instead.
You must also take a short credit counselling class before filing. It costs $10–$30 and takes about one hour.
Chapter 7 Bankruptcy Georgia
The Fastest Way to Wipe Out Debt
Chapter 7 bankruptcy Georgia is the most common type in Georgia. It takes only 4–6 months to finish for most people. When you file, the court starts the stop order right away. This keeps collectors off your back while your case moves forward.
What Chapter 7 Erases
- Credit cards
- Medical bills
- Personal loans
- Payday loans
- Old utility bills
You meet with a trustee for a short, simple meeting. Most meetings last less than 10 minutes and happen online or on the phone.
What You Get to Keep in Chapter 7
Most people fear losing their home or car if they file for bankruptcy. But here’s the truth: More than 95 out of 100 people keep everything they own in Chapter 7 bankruptcy Georgia.
Georgia has strong “exemption” rules that protect your property. You can keep:
- $21,500 of home value (equity) — $43,000 for married couples
- $5,000 in car value — $10,000 for married couples
- Clothes, furniture, and basic items
- $5,000 in household goods — $10,000 for married couples
- An extra wildcard amount of up to $11,200 (or $22,400 for couples)
- Retirement accounts — 100% protected
These rules protect your day-to-day life while giving you a clean slate.
Costs
- Court fee: $338
- Lawyer fee in Georgia: $1,200–$1,800 (average)
Most people say Chapter 7 gives them the fastest relief.
Chapter 13 Bankruptcy Georgia
A Payment Plan That Helps You Keep Your Home
Chapter 13 bankruptcy Georgia is for people who have a steady income and want to catch up on payments instead of wiping everything out at once.
This type lasts 3–5 years. You make one monthly payment, and at the end, many unpaid debts get erased.
What Chapter 13 Helps You With
- Stops foreclosure
- Let’s you catch up on missed mortgage payments
- Let’s you catch up on car payments
- Helps with tax debt
- Helps people who earn too much for Chapter 7
- Protects property you might lose in Chapter 7
Your payment amount is based on what you can afford after normal living costs. Many plans in Georgia range from $200–$800 a month.
Georgia has a high number of Chapter 13 cases because many people want to save their homes.
Chapter 11 Bankruptcy Georgia
Mostly for Businesses
Chapter 11 bankruptcy Georgia is used mostly by companies and business owners. It lets them stay open while reorganizing their debts.
There is also a special, cheaper version called Sub chapter V for small businesses that owe less than $7.5 million.
In 2024, Georgia saw a large increase in small business closures that used Chapter 11 bankruptcy Georgia. Many small restaurants, shops, and service companies relied on this option to deal with high costs.
Georgia Protection Rules (Exemptions)
What You Can Keep When You File
Georgia has some of the best protection rules in the nation. These rules apply to all types of bankruptcy in the state.
Here is what you can keep:
| What You Keep | Single Person | Married Couple |
| Home value | $21,500 | $43,000 |
| Car value | $5,000 | $10,000 |
| Furniture & clothing | $5,000 | $10,000 |
| Wildcard (extra cash or items) | Up to $11,200 | Up to $22,400 |
| Retirement accounts | 100% protected | 100% protected |
Because of these strong rules, almost everyone keeps their home items, car, and retirement money.
Steps to File Bankruptcy in Georgia
Here are the steps in clear, simple words:
- Take the short credit counseling class.
- Gather your papers: bills, pay stubs, bank statements, tax returns.
- Fill out the forms (or hire a lawyer to do them).
- Pay the court fee and file your papers with the court.
- Attend one short meeting (online or by phone).
- Wait for your discharge letter:
- 4–6 months for Chapter 7
- 3–5 years for Chapter 13
Your debts get cleared when the discharge letter arrives.
Life After Bankruptcy
After bankruptcy, a lot of people are scared about what the future holds, but in most cases, life gets better quite quickly.
Here is the typical path for a bankruptcy filer in Georgia:
- The initial credit score takes a hit, but then you can go on to build credit again.
- Many people manage to get new credit cards in less than a year.
- Within a few months, you are allowed to purchase a car.
- At first, loans may be more expensive, but the rates get better as time goes by.
- A bankruptcy remains in your credit file for 7 years (Chapter 13) or 10 years (Chapter 7).
- By paying your bills on time, you will be back on track sooner than you expected.
Most people say that they immediately experience a sense of relief because the burden of debt has disappeared.
Final Words
Bankruptcy shouldn’t be considered a failure. It is a regulative measure that enables the disadvantaged households and employees to have a new beginning. The state of Georgia has regulations which ensure the safety of your residence, vehicle, clothing, and money set aside for your retirement. People resorting to such laws in order to start over are in the thousands every year.
It is worth noting that over 28,000 residents of Georgia filed for bankruptcy in the year 2024. You are not the only one.
In case the inability to pay your debts is the source of your anxiety, do not hesitate to consult a bankruptcy attorney in Georgia. The majority of them provide the initial consultation free of charge. You are worthy of tranquillity and an opportunity to make a fresh start.
This guide gives you clear, simple Georgia bankruptcy information, and helps you understand Chapter 7 bankruptcy Georgia, Chapter 13 bankruptcy Georgia, and Chapter 11 bankruptcy georgia so you can choose the best path for your future.
