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Bankruptcy in Georgia
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Laws pertaining to Bankruptcy There are different laws and rules pertaining to the bankruptcy in the different reasons. It must be understood clearly by the reader that when a person or a company wishes to declare itself bankrupt, it has to file application for the same as per the different laws prevailing in the country pertaining to the bankruptcy.
It has been noted in almost all the countries that the laws of bankruptcy at the federal level or the central level is essentially the same and the different states observe the same laws of the bankruptcy. Only the area of jurisdiction differs as far as different states are concerned, but the different laws relating to the bankruptcy are essentially the same. The United States is no exception to this and the laws of the bankruptcy that the different states of United States observe are essentially the same. It is definitely there that the area of jurisdiction of different states is different, the judges and the clerical at the different courts are also different, but the verdict is given on the same rules and laws. Georgia in the U.S also observes the federal laws pertaining to the bankruptcy and all the procedures that are followed are essentially the same. Let us discuss bankruptcy in Georgia in our next part of discussion.
Various chapters for filing bankruptcy in Georgia:
There are basically two chapters under which the bankruptcy can be filed in the Georgia. A person or a company can file the case under either of the chapters. The two chapters are: The first chapter is the Chapter 7 of the bankruptcy in georgia. It is also called as the Straight Bankruptcy chapter. Any person or a company that files the application for bankruptcy under this chapter has to undertake that it shall repay all the debts pertaining to its various creditors, except those debts that are listed, and would start the business etc afresh. Thus, there is repayment of all the money that is borrowed by the bankrupt company or the person. The other chapter is the Chapter 13 of the bankruptcy. This chapter is also called as the wage earner chapter of the bankruptcy. When a person or a company files an application for the bankruptcy under this chapter, it has to make a repayment plan that is spread over the years and thus, the money owed is not repaid in one go like the chapter 7 of the bankruptcy. Thus, the various creditors of the company get their money back over the years and also, there is no fresh start of the activity as such, as it is in the chapter 7 of the bankruptcy. A new bankruptcy law was introduced in the state of Georgia on the April 20, 2005. It was indeed introduced in the whole of the United States. This new law pertains to the access of a person, company to the various US bankruptcy courts in the different states of the United States. There were several that were made in the existing bankruptcy law. Some of the changes that were made are the introduction of the new ban in the chapter 7 of bankruptcy, the increase in the chapter 13 payments, changes in the penalties pertaining to the presumptions against the debtors, and the time gap between the subsequent discharges. The various changes that have been made would be put under practice on the enactment of the law or with effect from the retrospective effect. The chapter 7, under which a person or a company can file an application for the bankruptcy in georgia, is indeed the simple and the quickest form of bankruptcy. Most of the cases that are filed under the chapter 7 of the bankruptcy are the no asset cases. It means that the person or the company etc, those wishes to declare itself as bankrupt, has no non-exempt property to be sold and thus the name, no asset. When the new law would be enacted, the chapter 7 would provide a means test. By the application of this, the court would determine whether a person or a company is eligible for the filing of the bankruptcy under the chapter 7. Thus, it is indeed an improvement upon the existing chapter 7 of the bankruptcy applicable in the state of Georgia. A person would be eligible for filing the bankruptcy in Georgia only if the income is below than the median income for the different families in the state of Georgia. All the cases that would be filed on or after October 1, 2006 would be tested with the median family income data and only then the application for the bankruptcy would be considered. Any person or the company that wishes to file an application for the bankruptcy in the state of
Georgia would have to comply with the various schedules and the statement of the financial affairs as determined by the bankruptcy in georgia. A list of all the creditors would have to be submitted to the court. When the application is filed all the creditors of the person or the company would be debarred from making any collection on the debts provided by them on the basis of automatic stay. This stay is designed to preserve the property of the person or the company that has filed an application for the bankruptcy.
What a person in Georgia can keep When any person files an application for the bankruptcy in Georgia, he can keep various things with him like the refrigerators, washing machines, oven etc. Also, a person can keep with him the various benefits pertaining to the unemployment, retirement, veteran benefits etc. Pension accounts and the alimony can also be kept with a person. If there is a payment for the injuries or the wrongful death, it can also be kept. It there is no equity in the house of the bankrupt person; he can easily keep the house with him so long as he keeps the mortgages current. The bankruptcy also does not wash off the voluntary liens like the deeds of trust, mortgages etc. So a person retains the right have foreclose, if he does not pay.
So, act as per law After reading the above article, it can be rightly said that there are different laws pertaining to the bankruptcy in georgia. Any person or a company that wishes to declare it bankrupt has to follow all the laws of bankruptcy. So, if you wish to declare yourself bankrupt in the state of Georgia, you will have to follow all the rules.
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