Chapter 7 Bankruptcy in Georgia
Chapter 7 is the fastest form of personal bankruptcy — most Georgia filers receive a discharge of eligible debts within about four months of filing. You must pass the means test to qualify, and Georgia's opt-out exemptions under O.C.G.A. § 44-13-100 determine what property you keep.
By Find Local Law Editorial Team · Last reviewed: May 26, 2026
Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.
This is general information, not legal advice. A Georgia bankruptcy attorney can help.
How Chapter 7 Works
Chapter 7 bankruptcy — often called “liquidation bankruptcy” — is a court-supervised process where a trustee reviews your assets, liquidates any property not protected by exemptions, and uses the proceeds to pay creditors. Whatever eligible debt remains after that process is discharged: permanently eliminated. You walk away with a clean slate and no personal liability for those debts.
The entire process moves quickly. Most Georgia Chapter 7 cases from filing to discharge take about four months, making it far faster than Chapter 13’s three-to-five year commitment.
Qualifying: The Means Test
Not everyone qualifies for Chapter 7. To prevent high-income filers from using liquidation when they could afford to repay creditors, Congress created the means test under 11 U.S.C. § 707(b).
The test works in two steps. First, calculate your average monthly income over the six months before filing and multiply by 12. If that annualized figure is at or below Georgia’s published median income for your household size, you pass automatically and can file Chapter 7. If your income is above the median, you complete a second calculation that subtracts IRS-approved living expenses and certain actual expenses. If your disposable income after those deductions is below the statutory threshold, you still qualify. If not, you are directed toward Chapter 13.
What Happens to Your Property
Georgia is an opt-out state, so filers must use the state exemption schedule under O.C.G.A. § 44-13-100. Key amounts: up to $21,500 of home equity (or $43,000 for joint filers), $5,000 in a vehicle, unlimited retirement account balances, $300 per household goods item, and a wildcard of up to $11,200 for anything else.
Property fully covered by an exemption is safe. For property that exceeds the exemption amount, the trustee can sell it and return the exempt portion to you. In practice, most consumer Chapter 7 cases are no-asset cases — either the filer owns little of value or everything is covered by exemptions — and the trustee closes the case without liquidating anything.
The Automatic Stay
The moment you file, the automatic stay under 11 U.S.C. § 362 immediately halts all collection efforts against you. Foreclosures stop, wage garnishments end, collection calls must cease, and pending lawsuits are frozen. The stay remains in effect throughout your case, giving you protection from creditors while the court process plays out.
Discharge: What Gets Wiped Out
After the 341 meeting and the 60-day creditor objection window close without incident, the court enters the discharge order. Dischargeable debts include credit cards, medical bills, personal loans, certain older income taxes, and most other unsecured debts.
Non-dischargeable debts include student loans (absent extreme hardship), domestic support obligations, recent income taxes, debts incurred through fraud, and liabilities for injury or death caused by DUI. See the Non-Dischargeable Debts guide for the full list.
Impact on Your Credit
A Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date. That said, many filers find that their credit score — already damaged by missed payments and collections — actually improves in the months following discharge once the debt-to-income picture clears. Rebuilding credit after bankruptcy is possible, typically starting with secured credit cards and consistent on-time payments.
Find a Georgia bankruptcy attorney who can evaluate whether Chapter 7 is the right fit for your situation.
Connect with a local attorney
Tell us about your situation and we'll match you with a local California attorney who handles matters like yours. Free, no obligation.
Start your free intakeFrequently asked questions
- How long does Chapter 7 take in Georgia?
- A standard, uncontested Chapter 7 case in Georgia takes approximately four months from the filing date to discharge. The timeline includes the automatic assignment of a trustee, the 341 meeting of creditors (usually 30–40 days after filing), a 60-day objection period for creditors, and then the court's entry of the discharge order.
- Will I lose my house or car if I file Chapter 7 in Georgia?
- Not necessarily. Georgia's homestead exemption protects up to $21,500 of equity in your home ($43,000 if you and your spouse file jointly). Your vehicle is protected up to $5,000 in equity. If your equity in either asset is within those limits — and you are current on the loan — you can typically keep both. If you are behind on payments, Chapter 13 may be the better option.
- Does Chapter 7 discharge all of my debts?
- No. Chapter 7 discharges most unsecured debts — credit cards, medical bills, personal loans, and older utility bills — but certain debts survive. Student loans, recent income taxes, domestic support obligations (child support and alimony), and debts from fraud are generally non-dischargeable under 11 U.S.C. § 523. Recent luxury purchases and cash advances taken shortly before filing can also be challenged.
Sources
Related guides
- Chapter 13 Bankruptcy in Georgia Chapter 13 bankruptcy lets Georgia filers keep all their property while repaying debts through a 3- to 5-year court-approved plan. It is the primary tool for stopping foreclosure and catching up on mortgage arrears, and it can discharge some debts that Chapter 7 cannot.
- Georgia Bankruptcy Exemptions Georgia is an opt-out state, meaning filers must use Georgia's state exemption schedule under O.C.G.A. § 44-13-100 instead of the federal exemption list. Exemptions protect specific property from the bankruptcy trustee in a Chapter 7 case and determine how much unsecured creditors receive in a Chapter 13 plan.
- How Bankruptcy Works in Georgia Bankruptcy in Georgia is a federal court process governed by Title 11 of the U.S. Code. Individual filers choose between Chapter 7 liquidation and Chapter 13 reorganization based on their income, assets, and goals. All cases are filed in one of Georgia's three federal bankruptcy districts, and 341 meetings are now held via Zoom.
- Non-Dischargeable Debts in Bankruptcy Bankruptcy discharge eliminates most debts, but 11 U.S.C. § 523 lists specific categories that survive — including student loans, recent income taxes, domestic support obligations, and debts from fraud. Chapter 13 can discharge a few categories that Chapter 7 cannot.
- The Automatic Stay in Bankruptcy The automatic stay under 11 U.S.C. § 362 takes effect the instant a bankruptcy petition is filed, immediately halting most collection actions including foreclosure, wage garnishment, collection calls, and pending lawsuits. It is one of the most powerful protections in bankruptcy law.