Financial stress can feel overwhelming, especially when debt continues to pile up despite your best efforts. If you’re facing collection calls, wage garnishments, or foreclosure threats, you’re not alone—and you do have options. Bankruptcy is one of the most powerful legal tools available to help individuals and families in Georgia get a fresh financial start.
At Duncan & Brow, we help clients understand how bankruptcy works, what it can (and can’t) do, and whether it’s the right choice based on their unique situation. If you’re considering bankruptcy, here’s what you need to know.
Understanding Bankruptcy in Georgia
Bankruptcy is a legal process that allows individuals or businesses to eliminate or restructure certain debts under the protection of the federal bankruptcy court. In Georgia, the two most common types of consumer bankruptcy are Chapter 7 and Chapter 13.
Chapter 7
Chapter 7 bankruptcy, commonly known as “liquidation bankruptcy,” usually eliminates a majority of unsecured debts, such as credit card balances, medical expenses, and personal loans. This approach is usually ideal for those with low income and minimal assets. Although some properties might be liquidated to settle debts, Georgia’s generous exemption laws enable most filers to retain vital assets, such as a specific amount of equity in their home, vehicles, personal items, and retirement savings.
Chapter 13
Chapter 13 bankruptcy, often referred to as “reorganization bankruptcy,” establishes a repayment plan over 3 to 5 years, allowing individuals to manage their debts based on their income rather than eliminating them outright. This option is particularly beneficial for those looking to recover from missed car or mortgage payments, prevent foreclosure, or catch up on or manage non-dischargeable debts, such as specific taxes or child support, all while maintaining their assets.
How Bankruptcy Helps
One of the most immediate advantages of filing for bankruptcy is the automatic stay. This legal safeguard halts all collection efforts from the time your case is submitted. This means no more calls from creditors, no more lawsuits, no more wage garnishments, and no home foreclosure while the bankruptcy is pending.
In the long term, bankruptcy provides a way to reset your financial life:
- It can eliminate or reduce unsecured debt.
- It allows you to restructure secured debts under more favorable terms.
- It gives you breathing room to rebuild your credit and regain control of your finances.
For many Georgians, it’s not just about erasing debt—it’s about restoring peace of mind and laying the groundwork for a stable financial future.
Will You Lose Everything?
A common myth is that bankruptcy means giving up everything you own. In reality, most people who file in Georgia can keep their home, car, and personal items thanks to state exemption laws. However, every case is different, so it’s important to speak with an experienced bankruptcy attorney to understand how exemptions apply to your situation.
Rebuilding After Bankruptcy
While bankruptcy will affect your credit score, it also removes the burden of unpaid debt, giving you the chance to rebuild. Many clients are surprised to learn they can qualify for a secured credit card, auto loan, or even a mortgage within a few years after filing.
More importantly, bankruptcy offers a psychological reset. Once you’re no longer drowning in debt, it’s easier to budget, save, and make financial decisions with confidence.
Is Bankruptcy Right for You?
Bankruptcy may not be the right solution for everyone. It typically won’t eliminate student loans, child support, or recent tax debts. However, it can still be the best tool available if your debt is unmanageable and other solutions have failed.
At Duncan & Brow, we help clients throughout Georgia explore their debt relief options with honesty and compassion. If you’re struggling financially and want to understand your legal options, schedule a consultation with our team. We’re here to guide you in discovering a way forward and initiating your journey toward a more promising financial future.
