Most Chapter 7 cases in Georgia that go badly are damaged before the petition is even filed. A car has been signed over to a brother, a loan has been repaid to a parent, and a course certificate has expired. The trustee appointed to your case will find out about all of this, and by then, your options will be considerably narrowed.
Moving Property Out of Your Name First
Transferring a car, boat, or piece of land to a relative does not protect it. It marks it. A Chapter 7 trustee can undo transfers made within two years of filing under 11 U.S.C. § 548, and Georgia’s own fraudulent transfer law can go back further. The person who received the property is sued to return it.
Worse, the court may refuse to grant you a discharge under § 727(a)(2) altogether. Concealing assets from the bankruptcy court is also a federal crime under 18 U.S.C. § 152. You will keep the debt and lose your fresh start.
Paying Back Family Before You File
This one feels honorable, but it backfires anyway.
Under 11 U.S.C. § 547, a trustee can recover payments made to ordinary creditors within 90 days prior to filing, and payments to insiders, including relatives, close friends and business partners going back a year. Your mother received a demand letter from a trustee whom she had never met before. Talk to a lawyer about the timing before repaying anyone you love.
Using Credit Cards on the Way Out the Door
If you already know that you are filing for bankruptcy, stop borrowing money. Section 523(a)(2)(C) creates a presumption of fraud for luxury purchases made shortly before filing a case and for cash advances taken within 70 days. The creditor objects to this, and that specific debt survives discharge while everything else is wiped out. The U.S. Trustee Program has paid closer attention to card activity before filing, and filings in 2026 are drawing more attention, not less.
Missing the Credit Counseling Window
The counseling requirement in 11 U.S.C. § 109(h) has two important points:
- First, the course must be completed within 180 days of filing. If you take it too early, the certificate will be worthless.
- Second, the provider must be on the list approved by the Department of Justice for Georgia. A course approved in another state will not count here.
Then there is the second stage, debtor’s education, which occurs after filing. If you skip this, your case may close without discharge. People do this every year, and the debts come back.
Assuming Georgia Uses the Federal Exemptions
It doesn’t. Georgia opted out, so your homestead, vehicle and wage protections come from O.C.G.A. § 44-13-100, not from the federal list. If you are filing jointly, each spouse can claim a set of exemptions that changes what you can protect.
There is also a residency rule. Under 11 U.S.C. § 522(b)(3), if you have not lived in Georgia for the full 730 days before filing, you may be stuck using your prior state’s exemptions instead. Recently transplanted to Augusta are caught by this rule constantly.
Believing the Discharge Wipes Out Everything
Chapter 7 eliminates credit card debt, medical bills, personal loans, and older utility accounts. However, it does not affect:
- recent income taxes
- child support and alimony payments
- criminal fines and restitution
- most student loans (unless there is a separate court proceeding)
Also, liens remain in place. Your mortgage and car lenders continue to hold their security interests, and if you wish to keep your home or vehicle, you will continue to make payments on them.
Guessing at the Means Test
Eligibility is measured against Georgia’s median household income for your family size using figures updated by the U.S. Trustee Program on a rolling basis. The expense standards have changed again for cases filed on or after July 15, 2026. Someone who is screened out on the first page may still qualify if allowable expenses are taken into account. Do not make a decision on your own that you are ineligible.
Talk to an Augusta Bankruptcy Lawyer Before You Do Anything Else
Nearly every mistake above happens in the weeks before a case is filed, which means that nearly everyone of them can be prevented. Duncan Bankruptcy Law has spent more than three decades handling Chapter 7 and Chapter 13 cases, as well as student loan cases. Bankruptcy is something you do, not who you are.
Contact us for a free consultation and let us look at the timing before you sign anything, transfer anything or pay anyone back.
