Georgia is a beautiful place to live, but when the bills start piling up, you may want to look into bankruptcy. A chapter 7 bankruptcy allows you to wipe out a substantial amount of debt. However, you may have to give up your house to be debt-free. 

The United States Court System outlines what you can expect with a chapter 7 bankruptcy filing. First, you must pass a means test in order to be eligible for this type of bankruptcy. The court gives bankruptcy filers a fresh start. “The debtor has no liability for discharged debts.” 

Every state takes advantage of the federal bankruptcy court’s exemption law. Under this law, you can protect some of your property. However, you may have to choose which set of exemptions you wish to take advantage of, either state or federal. 

There are some types of property you can exempt from the bankruptcy filing, but it is wise to consult an attorney for the specifics on what the state law allows. The good news though is that you can enjoy an immediate stop to collection calls on your medical debt, overdue credit card payments and possible foreclosure on your home. 

Keep in mind if you file but your spouse does not, you still need their information. If you pass the means test and complete the other steps in the bankruptcy process, the court will discharge your debts making you no longer personally liable to pay them or be harassed by creditors. This information is intended only to educate and should not be interpreted as legal advice.