Filling Bankruptcy Atlanta | Chapter 7/11 Bankruptcy Peachtree Corners & Marietta GA (2024)

FAQs

How much does it cost to file Chapter 11 bankruptcy in Georgia? ›

The cost to file for Chapter 11 bankruptcy is $1,738.

These fees are the same in all states.

If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don't have the option of filing Chapter 7.

Pro Bono Services: Legal aid societies and other non-profit organizations in Georgia provide pro bono bankruptcy services to those who qualify. These organizations can offer free legal assistance, making it possible to file for Chapter 7 without attorney fees.

The Chapter 11 Debtor in Possession

A corporation exists separate and apart from its owners, the stockholders. The chapter 11 bankruptcy case of a corporation (corporation as debtor) does not put the personal assets of the stockholders at risk other than the value of their investment in the company's stock.

On the other hand, the plan must not be so long that it does not appear feasible to the court. Typically, it takes from three to five years to carry out and consummate the Chapter 11 plan of a small business debtor.

Spending Money While You're in Chapter 7

However, the income you receive after filing your case is yours to use. Spend, save, or invest it – the Chapter 7 Trustee has no right to take the money or question what you do with it.

The "current monthly income" received by the debtor is a defined term in the Bankruptcy Code and means the average monthly income received over the six calendar months before commencement of the bankruptcy case, including regular contributions to household expenses from nondebtors and including income from the debtor's ...

You can keep your car when you file for Chapter 7 bankruptcy in Georgia. The state allows you to exempt up to $5,000 for your car as long as the equity in your vehicle is less than that amount. You can also protect your car by applying any unused wildcard exemption which covers any property you own.

The court may deny a chapter 7 discharge for any of the reasons described in section 727(a) of the Bankruptcy Code, including failure to provide requested tax documents; failure to complete a course on personal financial management; transfer or concealment of property with intent to hinder, delay, or defraud creditors; ...

How long does it take to file bankruptcy in GA? ›

File Chapter 7 in Georgia Successfully

Although most Chapter 7 bankruptcy cases in Georgia are closed and discharged within 4 to 6 months, there are some more complex cases that may pend for longer periods of time.

Chapter 7 in Georgia is a liquidation bankruptcy that allows you to wipe out most of your unsecured debt. Chapter 7 bankruptcy filers in Georgia often ask if they can keep their houses and cars in bankruptcy. Yes, you can even keep your house and your car in Chapter 7.

Petition. Every Chapter 11 case starts with filing a petition for bankruptcy. Most of the time, the person or business in debt will be the one to file this petition. You must pay $1,738 to file a Chapter 11 petition for bankruptcy.

Creditors are generally receptive to Chapter 11 filings since they stand to recoup at least some of their money. The recovery rates typically vary from 10% to 40%. That's not great, but it beats getting pennies (or less) if the debtor files a Chapter 7.

Every business's situation is unique and that means the exact time your Chapter 11 bankruptcy will take from the initial filing to the final settlement can vary. However, most businesses can expect the process to take anywhere from 1.5 years to 5 years.

Chapter 7 is considered a liquidation bankruptcy: it doesn't require a repayment plan but the business has to sell some assets to pay creditors. Chapter 11 is considered a reorganization bankruptcy that allows businesses to maintain their operations while creating a plan to repay creditors.