Georgia’s bustling economy and diverse population make it a hotspot for individuals seeking debt relief options. Bankruptcy is a legal process under federal law (Title 11 of the U.S. Code) that can help Georgia residents eliminate or restructure debt. Once you file for bankruptcy, an automatic stay goes into effect, preventing most creditors from taking further action— including foreclosures, repossessions, and wage garnishments.
Georgia filers typically choose between Chapter 7 (a liquidation-style bankruptcy) or Chapter 13 (a repayment plan). The right chapter for you depends on factors like income, asset ownership, and long-term goals—such as retaining your home or car.
Chapter 7 eliminates many forms of unsecured debt, such as credit card bills and medical expenses, in as little as three to four months. You may keep property protected by Georgia’s exemptions—like certain equity in your home or car. If your income is too high to pass the means test, or you have assets not fully covered by exemptions, Chapter 13 might be more suitable.
Under Chapter 13, you create a payment plan spanning three to five years. This arrangement lets you catch up on past-due mortgage payments and potentially prevent foreclosure. Successful completion of a Chapter 13 plan often means any remaining eligible debts are discharged.
Because Georgia is an “opt-out” state, filers must use Georgia’s exemption laws—mainly found in the Official Code of Georgia Annotated (O.C.G.A. § 44-13-100). This covers your homestead, car equity, personal items, and more. To confirm exact amounts and changes over time, consult: O.C.G.A. § 44-13-100.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For personalized recommendations, consult a qualified bankruptcy attorney.
We’ve created resources for individuals in major cities across Georgia. Click below for localized information: