The U.S. Bankruptcy Code governs bankruptcy. The most common form of bankruptcy is Chapter 7 bankruptcy, which is also called straight bankruptcy or liquidation bankruptcy. Chapter 7 is generally the simplest and quickest form of bankruptcy to file in Atlanta.
Chapter 7 bankruptcy is available to individuals, married couples, corporations, and partnerships, and is most often chosen for personal bankruptcy in Atlanta. An advantage of Chapter 7 bankruptcy is that it cancels debts. Under Chapter 7, the bankruptcy court appoints a trustee. The trustee sells off or liquidates some of the property or assets of the debtor for the benefit of creditors.
Most Chapter 7 Atlanta bankruptcies are no-asset cases that have no non-exempt property for the trustee to sell. It is important to note that there are strict income requirements to be eligible to file for Chapter 7 bankruptcy. Federal bankruptcy laws provide for a means test that determines whether you are eligible to file Chapter 7 bankruptcy. If your income is below the median income for families in Georgia, based on U.S. Census Bureau statistics, you may file Chapter 7. However, if your income is too high, you must file under Chapter 13 in Atlanta, instead of Chapter 7.
Chapter 7 bankruptcy wipes out many of the debts of a debtor and leaves the debtor with a relatively clean financial slate. Under Chapter 7 in Atlanta, non-exempt assets may be liquidated and sold off to pay creditors.
Some debts that may still remain and are required to be paid include the following:
Many requirements must be met to properly file for Chapter 7 bankruptcy. For instance, you must obtain approved credit counseling before you can file bankruptcy and you must file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy in Atlanta. A skilled Atlanta bankruptcy attorney can help you meet all deadlines and filing requirements.