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So, What Exactly is Chapter 7 Bankruptcy?

Chapter 7 is your Constitutional right to a fresh start!

Chapter 7 is a provision of the U.S. bankruptcy code that permits individuals to liquidate assets and discharge debt. If you took on debt in good faith, but circumstances beyond your control have frustrated your efforts to repay it, there's no reason you shouldn't take advantage of the protections the law affords. Chapter 7 bankruptcy is there for you, the hard-working, industrious citizen who needs help getting back on the right track.

Chapter 7 is the most common type of consumer bankruptcy filed in the United States. It also provides the fastest way for a consumer to get out from under unsecured debt. In many cases, a Chapter 7 petitioner in Georgia can become debt-free in a few short months! Chapter 7 relief is directed towards the most common consumer debts, including:

  • Credit card debt
  • Utility bills
  • Medical bills
  • Unsecured personal loans
  • IRS debt
  • Payday loan debt

How petitioners file for Chapter 7 bankruptcy in Georgia

Not everyone is eligible to file for Chapter 7 bankruptcy. Potential filers must pass Georgia's means test, demonstrating that their income is below the median level in the state for earners with the same number of dependents. Those who have greater than median income can still qualify if they show that their previous six months of income was insufficient for them to make any meaningful dent in their debt.

If you pass the means test, your bankruptcy lawyer helps you prepare and submit a Chapter 7 bankruptcy petition to the Georgia bankruptcy court nearest you. Your filing creates an "automatic stay" that prevents your creditors from taking any action to collect from you. That goes for actions they've already started, like repossession of your car or wage garnishment. In fact, after you've filed, your creditors can't contact you at all; if they want to protest your filing, they have to deal directly with the bankruptcy court. For petitioners who've endured constant creditor harassment over the phone and through the mail, this relief is most welcome.

Contact DebtStoppers today for more information on Chapter 7 bankruptcy in Georgia

If you're still not certain that Chapter 7 is right for your situation, you can talk to a DebtStoppers bankruptcy lawyer free of charge. Call our Atlanta office at 404-796-7161 or fill out our Free Debt Analysis form online.