What Are the Different Options for Bankruptcy in Georgia?

If you’re facing overwhelming debt in Augusta, GA, bankruptcy may offer the financial relief you need to reset and rebuild. At Boudreaux Law Firm, we help individuals, families, and business owners understand their bankruptcy options and make informed decisions based on their unique financial situations. In Georgia, the most common forms of bankruptcy are Chapter 7, Chapter 11, and Chapter 13—each serving a different purpose and type of debtor.

Chapter 7 Bankruptcy – Liquidation

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is the most common form of bankruptcy filed in the U.S. In fact, over 60% of personal bankruptcies are filed under Chapter 7, according to recent court statistics.

This option is ideal for individuals with limited income and few assets who need to wipe out unsecured debt, such as:

• Credit card balances
• Medical bills
• Personal loans

In a Chapter 7 case, non-exempt assets may be sold by a trustee to repay creditors. However, Georgia bankruptcy exemptions protect many essential assets, such as your primary residence (with limits on the equity available), vehicle equity, clothing, and household items.

To qualify, you must pass the means test, which compares your income to the Georgia median for a household of your size. If your income is below the threshold, Chapter 7 may be the fastest and most affordable path to debt relief—discharge often occurs within 3 to 6 months.

Chapter 13 Bankruptcy – Wage Earner’s Plan

Chapter 13 is a great solution for individuals with a regular income who can repay some of their debts over time. It’s also ideal if you’re behind on your mortgage or car loan and want to keep your property while catching up on payments.

Under a Chapter 13 repayment plan, debts are consolidated into one monthly payment distributed to creditors over 3 to 5 years. The exact amount depends on your income, expenses, and total debt. At the end of the plan, remaining eligible debts may be discharged.

Chapter 13 is commonly used to:

• Stop foreclosure and catch up on mortgage arrears
• Protect co-signers on loans
• Pay tax debt over time
• Manage student loans and child support more effectively

This option also allows you to protect non-exempt assets that would otherwise be sold in Chapter 7.

Chapter 11 Bankruptcy – Business Reorganization

While typically used by businesses, Chapter 11 bankruptcy is also available to individuals with high levels of debt who don’t qualify for Chapter 13 due to debt limits.

Chapter 11 allows for:

• Business operations to continue while reorganizing debts
• Large-scale restructuring of leases, contracts, and obligations
• Court-approved payment plans that satisfy creditor claims

This form of bankruptcy is more complex and expensive than Chapters 7 or 13, but it’s a powerful tool for business owners in Augusta who need to restructure without closing their doors.

Choosing the Right Bankruptcy Option in Augusta, GA

Each type of bankruptcy has specific eligibility rules, benefits, and drawbacks. That’s why it’s critical to consult with an experienced Augusta bankruptcy attorney to determine which path is right for you. At Boudreaux Law Firm, we offer honest guidance and personalized legal support to help you regain control of your financial future.

Whether you’re a struggling homeowner, a wage earner trying to make ends meet, or a business owner buried in operational debt, we can help you explore your bankruptcy options with confidence and clarity.

Get a Fresh Start with Trusted Bankruptcy Guidance

If you’re overwhelmed by debt and considering bankruptcy in Augusta or surrounding areas, turn to Boudreaux Law Firm. With decades of experience serving Georgia residents, we are committed to helping clients get a fresh start through practical legal solutions. Contact us today to schedule your confidential consultation.

Posted on behalf of Boudreaux Law Firm

493 Furys Ferry Rd

Augusta GA 30907