Chapter 7 Bankruptcy Georgia: Your Guide to a Fresh Start

As debts rise and the economy remains uncertain, more Georgia residents are using bankruptcy as a safety net. For many, filing chapter 7 bankruptcy in Georgia can stop collections, halt lawsuits and wage garnishments through the automatic stay, and create a path to protect essential property while rebuilding their financial future.

While chapter 7 requires redemption of unexempt assets, most Georgians keep their essentials due to state exemptions in the Official Code of Georgia Annotated (O.C.G.A. § 44-13-100).

Key Takeaways

• •Chapter 7 bankruptcy will erase unsecured debts like credit cards, medical bills, and personal loans, while stopping lawsuits and garnishments through an automatic stay.
• •Georgia filers must pass the Georgia means test based on income and household size.
• •State exemptions protect home equity, your car, retirement accounts, and essential property.
• •Filing costs are $338, with waivers or payment plans available for qualifying filers.
• •Cases are filed in one of Georgia’s three bankruptcy chapter 7 Georgia court districts: Northern, Middle, or Southern.

What is Chapter 7 Bankruptcy in Georgia?

Chapter 7 bankruptcy Georgia (and beyond) is a legal process that allows individuals to eliminate eligible unsecured debts. Once you file, an automatic stay immediately stops most collections, giving you room to breathe.

A court-appointed trustee reviews your finances and determines if there are any non-exempt assets to liquidate. In the majority of Georgia cases, filers keep all their property because state exemptions are quite generous. This makes chapter 7 one of the most powerful tools for individuals seeking a fresh start.

Recent Statistics on Chapter 7

• •There has been a national rise in chapter 7 filings, up 15% in the first nine months of 2025 compared to the same period in 2024. That’s a 6.43% year-over-year increase.
• •Georgia has one of the higher rates of bankruptcy filings per thousand residents in the U.S. Last year, the state saw 763 bankruptcies per 100,000 residents.
• •In 2024, Georgia ranked 4th for bankruptcy petitions in the country, with 28,383 filings.

Signs You May Need to File Chapter 7 in Georgia

Filing bankruptcy is not admitting defeat. However, delaying filing may only hurt you more in the long run. It’s important to be honest with where you’re at and file as soon as you are sure you need help. Here are a few warning signs that may indicate it’s time to file chapter 7 in Georgia:

• Minimum Payments: You are struggling to keep up with even the minimum payments on your credit cards. This can lead to a vicious cycle of late fees that keep you under and wreak havoc on your credit.
• Garnishments: You are at the point where your wages are being garnished, and it is affecting your ability to provide for yourself and/or others.
• Legal: There are liens on assets or you are fighting lawsuits you cannot afford.
• Disposable Income: After paying for essentials, you have little or no disposable income.
• Basic Expenses: You are relying on the wrong things to fund basic living expenses, like credit cards.
• Foreclosure: If you’re facing threats of losing your home or the bank repossessing your car, it may also be a good time to consider filing.
• Unsecured Debt: If you’re carrying mostly unsecured debt, like medical bills or credit cards, chapter 7 may be a way to resolve these issues.

If you’re feeling overwhelmed by mounting bills, collection calls, or legal actions, it may be time to evaluate whether filing chapter 7 is the right path. Recognizing these red flags early will help you protect assets and regain control over finances.

Who Qualifies? The Georgia Bankruptcy Means Test and Chapter 7

Eligibility for bankruptcy chapter 7 in Georgia depends on your household income and allowable expenses. How do you determine if you qualify?

The chapter 7 bankruptcy Georgia means testis the answer. If your income is below the state median for your household size, you pass automatically. If it’s above, you may still qualify after subtracting certain expenses.

Chapter 7 Bankruptcy Georgia Means Test Exemptions

You bypass the Georgia bankruptcy means test if:

• •Your debts are not primarily consumer debts.
• •You are a disabled veteran and incurred the debt primarily during active duty or while performing a homeland defense activity.

How Your Georgia Median Income Is Measured

Average monthly income is calculated over the last six calendar months. Please note, if you are currently over the median but your income has declined, waiting one or two months might bring the six-month average under the Georgia median.

Georgia Median Income

This table represents the Georgia median income threshold for cases filed on or after May 15, 2025.

Please note, these figures are only good for six months and update every May and October. Check the Justice.gov - Median Income Table for the most updated statistics.

Chapter 7 Bankruptcy Georgia Means Test Calculation

Not sure if you are eligible to file for chapter 7? Here’s how to make a good estimate:

• Collect Your Data: This means all income records for the last six months, including wages, rental income, businesses you may own, pensions, retirement plans, unemployment, interest and dividends, and any other documents that show income.

• Apply Expenses: Subtract your allowable expenses using national and local standards from the IRS. You can also include some actual required expenses, like legally mandated payments and costs necessary for health and welfare.

• Calculate Disposable Income: Subtract the allowed expenses from your income. This determines the amount considered “available” to pay unsecured creditors in a chapter 13 plan (in case that's what you need).

How is Chapter 7 in Georgia Different than Chapter 13?

Chapter 13 bankruptcy is a 3 to 5 year payment plan that also offers a discharge after the payment plan is completed. In the mean time Debtors may use Chapter 13 plan payments in various ways, like paying off debt, paying back arrears, like mortgage arrears and vehicle arrears, and paying back priority debts like taxes and domestic support obligations.

While chapter 13 does not offer an immediate discharge, it can be used to stay creditors, and catch up items like these. You can find even more of our bankruptcy resources on chapter 13 bankruptcy here. You can also find out more about the differences between chapter 7 vs chapter 13 bankruptcy here.

Pre-Filing Credit Counseling

For a chapter 7 Georgia bankruptcy, you must complete pre-filing credit counseling with an approved agency (by the U.S. Trustee Program). The counseling must be completed within 6 months before you file for bankruptcy.

Finding an Approved Credit Counseling Agency in Georgia

You can’t just pick any provider for counseling services. They have to be approved by the U.S. Trustee Program. To find a match, follow these quick steps:

• Find the List: To find a provider for your district, visit the U.S. Trustee Program website for approved credit counseling agencies.
• Find Your District: Search the list for agencies approved in Georgia. Some approved providers are located out of state but offer telecommuting services via phone or online.
• Choose a Provider: Review the list and compare different agencies. Contact as many as you need to inquire about services and fees before selecting a counselor that fits.

What to Expect During Your Credit Counseling Session

A typical counseling session lasts between 60 to 90 minutes and can be completed in person, over the phone, or online. The counseling will include an evaluation of your financial situation, discussion of alternatives to bankruptcy, and assistance in creating a personal budget plan.

Fees and Waivers

Average fees for this counseling session are around $50. If you cannot afford to pay, providers (from the approved list) can offer a waiver for free services or a reduced rate. Additionally, they cannot charge you anything for issuing the certification of completion (which you will need later on).

Certificate of Completion

It is vital you receive this after your counseling session and keep it in your records for the bankruptcy. The state of Georgia requires counseling and this certificate is proof you went and abided by the policy.

You must file the certificate of completion (keep a copy for yourself) with the bankruptcy court when you submit your chapter 7 petition. Without it, your case could be dismissed.

Please note: this pre-filing credit counseling is a separate requirement from the post-filing debtor education course, which you must also complete before your debts are discharged.

Quick Means Test Eligibility Checklist

• Six-month average income is at or below the Georgia median for your household size, or you pass for allowable expenses.
• Most of your debts are consumer debts. Different rules will apply if your debts are primarily business-related.
• You have not received a chapter 7 discharge within the last eight years.
• You completed pre-filing credit counseling with an approved provider.
• Passing the means test does not automatically mean Chapter 7 is your best option.

Georgia Exemptions: What You Can Keep

Georgia is an opt-out state—if your domicile is in Georgia, you generally must use the Georgia exemptions in O.C.G.A. § 44-13-100; you cannot pick the federal set. If you’ve recently moved, the 730-day domicile rule may require using your prior state’s exemptions (and its rules on federal exemptions).

Georgia's exemption laws determine what property is protected in chapter 7 bankruptcy Georgia filings. These exemptions are applied to the equity in your assets and include:

These protections allow most Georgia residents filing bankruptcy chapter 7 in Georgia to keep their homes, cars, and personal belongings.

The Chapter 7 Bankruptcy Process in Georgia

• Take the Means Test: First, take the Means Test to ensure your median income qualifies for chapter 7. If it doesn’t, but you just lost your job (or it’s way lower for other reasons) wait a few months. There’s a 6-month window used and your average will fall.

• Pre-Filing Credit Counseling: The next step is to take an approved credit counseling course and receive your certificate.

• File Your Petition: Filing your bankruptcy triggers the automatic stay, stopping collections and lawsuits immediately.

• Trustee Review: A trustee is assigned to your case, and you must provide financial documents, including tax returns, pay stubs, and bank statements

• 341 Meeting of Creditors: A short, often virtual meeting with the trustee to verify your information.

• Debtor Education Course: A required post-filing debtor education and financial management course.

• Discharge: If no objections arise, your discharge order typically arrives within 4–6 months.

Things to Remember About Your Georgia Chapter 7 Bankruptcy

• Filing fee is $338 (waivers and payment plans available). Attorney fees are on average around $1500 - $3,500.
• Typical Timeline is 4–6 months
• Trustee Meeting (by phone or video)
• Risk of Asset Loss - Low due to Georgia exemptions
• Credit Impact is initially negative but can improve within 12–24 months

The Role of the Bankruptcy Trustee and the 341 Meeting

The bankruptcy trustee plays a crucial role in Chapter 7 cases. They are responsible for overseeing the process. This includes reviewing documents and liquidating non-exempt assets.

A pivotal step in the process is the 341 meeting, also known as the meeting of creditors. Here, the trustee and creditors can ask questions about your financial affairs. It's critical for the trustee to verify the information you provided.

Georgia 341 meetings: Where and How They Happen

Across Georgia’s three bankruptcy districts (Northern, Middle, and Southern), most section 341 “meeting of creditors” appointments for chapter 7 are conducted virtually via Zoom. Your Notice of Bankruptcy Case, Meeting of Creditors, and Deadlines lists the date/time, trustee, Zoom link, Meeting ID, passcode, and dial-in number. You’ll join from a quiet place, show a government-issued photo ID and proof of Social Security number, and answer the trustee’s standard questions under oath. Your lawyer will ensure you have the precise connection details for your assigned trustee and that your name on the petition matches your ID.

Georgia Chapter 7 Trustee Pre-341 Meeting Document Request

Before the 341, trustees typically request recent pay stubs, bank statements, tax returns, and a completed debtor questionnaire. Get these into your attorney’s hands early so the trustee receives them on time. Join the Zoom room a few minutes ahead of your slot (muted, camera on) and use your full legal name so the trustee can check you in quickly. If you need special accommodations or only have phone access, your attorney can coordinate that with the trustee in advance.

Key responsibilities of the trustee include:

• •Reviewing the bankruptcy petition
• •Conducting the 341 meeting
• •Liquidating non-exempt assets (if any)
• •Distributing funds to creditors(if any)

This meeting is essential for transparency and ensures that your case proceeds smoothly. Proper preparation can help reduce anxiety and ensure compliance.

Georgia Chapter 7 Costs

The cost to file chapter 7 in Georgia varies depending on the details of the case. For example, a case with assets would probably be more work because your bankruptcy attorney would probably have to negotiate with the chapter 7 trustee. Or a case with a creditor who is not going to be happy about being discharged might be more involved it there is an objection to discharge to respond to. Each case is different and requires different action. Below is what you can generally expect to spend if you file chapter 7 in Georgia.

• Court Filing Fee: $338, with waiver and installment options available for low-income filers
• Credit Counseling and Debtor Education Courses: $10–$50 each
• Attorney Fees: Vary by case and region, with many firms offering payment plans. However, on average, fees are anywhere form $1,500.00 to $3,500.00.

Top Chapter 7 Bankruptcy FAQs in Georgia

Do I Need a Lawyer to File for Chapter 7 in Georgia?

You can technically file on your own (called pro se), but Chapter 7 involves complex legal and financial disclosures, strict deadlines, and Georgia-specific exemptions and rules. Working with a Georgia bankruptcy attorney helps you protect important assets, avoid costly mistakes, and navigate procedures smoothly.

Will I Lose My House or Car If I File?

In most cases, in the state of Georgia, you can keep everything. If your home or vehicle equity is within the exemption limits and you’re current on payments, you’ll likely be able to keep them.

Georgia’s homestead exemption protects up to $21,500 of home equity ($43,000 for married couples), and the motor vehicle exemption protects up to $5,000 in equity for one car. Applying exemptions correctly is crucial to avoid losing property.

How Long Does the Chapter 7 Process Take in Georgia?

Most no-asset Chapter 7 cases take about 4–6 months from filing to discharge. The timeline includes credit counseling, filing the petition, the 341 meeting of creditors, debtor education, and finally, the court’s discharge order. More complex cases or trustee objections will definitely extend your timeline.

Which Debts Are Not Dischargeable in Chapter 7?

Keep in mind, some debts cannot be wiped out. This includes:

• Child support and alimony
• Recent federal and state taxes
• Most student loans (unless undue hardship is proven)
• Court fines and restitution
• Debts incurred through fraud

Understanding which debts remain after discharge helps you plan your financial recovery realistically.

How Will Chapter 7 Affect My Credit?

Realistically, a chapter 7 bankruptcy in Georgia will stay on your credit report for up to 10 years, but many people begin rebuilding credit within 1–2 years. Making on-time payments, using credit cards responsibly, and maintaining low balances helps you rebuild faster.

Georgia Chapter 7 Success Stories

Atlanta Nurse Ends Garnishments and Rebuilds

After unexpected medical bills and a reduction in overtime hours, Tasha—a registered nurse in Atlanta—fell behind on credit cards and saw her paycheck garnished. With guidance from a local attorney, she completed pre-filing credit counseling, passed the means test based on her household size, and filed for chapter 7. The automatic stay immediately stopped the garnishment and the collection calls. At the 341 meeting, the trustee confirmed her car had minimal equity protected by Georgia’s motor-vehicle exemption, and her household goods were covered. About five months after filing, Tasha received her discharge, cleared more than $38,000 in unsecured debt, and began rebuilding with a secured card and on-time payments.

Savannah Restaurant Worker Protects Car and Credit

Marcus, a line cook in Savannah, used high-interest credit to cover living costs when hours were cut. Minimum payments became unmanageable, and a lawsuit was filed. He completed the chapter 7 paperwork, verified six months of pay stubs for the means test, and filed. The automatic stay paused the lawsuit immediately. At the trustee meeting, his paid-off sedan was protected by Georgia’s exemption, and his small savings were covered by the wildcard. Roughly four months later, Marcus obtained a discharge of medical and credit-card balances. Within a year, he had a stable budget, two paid-on-time trade lines, and qualified for a reasonable auto refinance that lowered his monthly expenses.

Rome Family Regains Stability After Job Loss

When Daniel and Priya in Rome, Georgia, lost a primary income and relied on cards to bridge the gap, late fees snowballed. They evaluated chapter 13 but chose chapter 7 after passing the means test and confirming their home equity fit under Georgia’s homestead protections. The couple gathered tax returns, bank statements, and pay records, then filed and attended a brief virtual 341 meeting. No non-exempt assets were identified. Five months later they received a discharge wiping out personal loans and medical debt. With a clean slate, they built an emergency fund, used a secured card wisely, and saw their credit scores improve while keeping their home and everyday essentials intact.

Taking Your First Step Toward Relief

By gathering documents, completing the required credit counseling course, and consulting with a qualified Georgia bankruptcy attorney, you can better determine eligibility and understand exactly how filing protects assets and stops creditors from hounding you.

If you’re overwhelmed by debt, chapter 7 bankruptcy in Georgia offers a powerful path to a fresh financial start. Don’t be a deer in headlights, take actionable steps to build back your financial future today.

Schedule a free consultation with a trusted Georgia bankruptcy attorney. They can help you explore chapter 7 options and take the first step toward lasting relief and financial stability.

Find Bankruptcy Info for Your Georgia City

We’ve created resources for individuals in major cities across Georgia. Click below for localized information:

• Atlanta
• Augusta-Richmond County
• Columbus
• Macon-Bibb County
• Savannah
• Roswell
• Athens-Clarke County
• Sandy Springs
• South Fulton