In Georgia, consumers choose to file for bankruptcy for a variety of purposes. The process stops the foreclosure of their home and repossession of their automobile. It is also a method of becoming debt-free. For some consumers, it can eliminate high volumes of debt in a short amount of time. The following information reflects concepts that the consumers should know about bankruptcy in Marietta, GA.
Qualifying Income and Asset Requirements
In Marietta, any consumer who wants to file for chapter 13 bankruptcy qualifies according to their income level. Their income must range above the area median to qualify. Currently, the median income is $40,645. Without an income higher than this value, the consumer doesn’t qualify.
For chapter 7, the consumer must own enough assets to generate adequate funds through sales. The purpose of this chapter is to liquidate their estate to settle their debts. The value required is identified by their attorney after an assessment of their current debts.
The Need for Credit Counseling
Credit counseling is a prerequisite for all chapters of bankruptcy. The consumer must attend and complete a state-approved program. They must present a certificate showing the completion of these programs to start the bankruptcy claim.
Following Through with the Bankruptcy Case
For chapter 13, the consumer follows a strict repayment plan. They submit payments each month based on the court’s calculations. If they fail to submit these payments, the case can be discharged and all debts become the immediate responsibility of the consumer.
In chapter 7, the consumer must provide titles and deeds for all property they wish to sell. A trustee is assigned by the judge to manage the sale of all assets identified. The trustee submits the full payment to all creditors listed in the claim.
Any Additional Requirements
All disposable income must be used to pay off debts that aren’t included in the chapter 13 bankruptcy claim. No consumer who is in the process of a bankruptcy case can start a new line of credit.
In Georgia, consumers file bankruptcy to manage debt and avoid legal action by their creditors. These claims can prevent foreclosure and repossession of assets.
