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.
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.
What Bankruptcy Is — and Who It Helps
Bankruptcy is a federal legal process, rooted in Article I of the U.S. Constitution, that gives people and businesses overwhelmed by debt a structured way to either eliminate what they owe or reorganize payments under court supervision. It is not a sign of failure — it is a legal tool designed to give honest debtors a fresh start.
The most common reasons Georgians file bankruptcy include job loss or reduced income, medical debt, divorce, or a business that did not survive. Bankruptcy stops collection calls, lawsuits, and foreclosures the moment you file, giving you breathing room while your case is resolved.
Chapter 7 vs. Chapter 13: Which One Fits?
The two chapters available to most individuals work very differently.
Chapter 7 is the faster option, typically resulting in a discharge of eligible debts within about four months. A trustee is appointed to review your assets and liquidate any property not protected by Georgia’s exemptions — but the majority of consumer cases are “no-asset” cases where the filer keeps everything. To qualify, you must pass the means test under 11 U.S.C. § 707(b), which compares your income to Georgia’s median for your household size.
Chapter 13 takes longer — three to five years — but it lets you keep all your property, including a home facing foreclosure, while repaying creditors through a court-approved plan. It is the right choice if you have equity to protect, you are behind on your mortgage, you have debts that cannot be discharged in Chapter 7, or your income is too high to qualify for Chapter 7.
The Means Test in Plain English
Before filing Chapter 7, you calculate your average monthly income for the six months before filing and multiply by 12 to get an annualized figure. If that number is at or below Georgia’s published median income for your household size, you qualify automatically. If it is above the median, you complete a second calculation — subtracting IRS-approved living expenses and certain actual expenses. If your remaining disposable income is below the threshold set by law, you still qualify. If not, Chapter 7 is unavailable and Chapter 13 becomes the path forward.
Georgia’s Three Bankruptcy Districts
Georgia cases are filed in one of three U.S. Bankruptcy Courts. The Northern District of Georgia (Atlanta) handles the largest volume, covering 56 counties including the entire metro Atlanta area. The Middle District of Georgia (Macon/Columbus) covers 70 counties across the central and southwestern parts of the state. The Southern District of Georgia (Savannah/Augusta/Brunswick) covers 43 counties along the coast and southern border.
You file in the district where you have lived for the greater part of the 180 days immediately before filing. All three districts currently hold 341 meetings via Zoom, so you do not need to travel to a courthouse for that hearing.
The Filing Process Step by Step
Filing begins with credit counseling from an approved agency within 180 days before you file — this is a federal requirement under 11 U.S.C. § 109(h). You then prepare and file your petition, schedules, and statement of financial affairs with the bankruptcy court. Filing triggers the automatic stay immediately.
The trustee assigned to your case reviews your documents and conducts the 341 meeting. In Chapter 7, if there are no complications, the court enters a discharge roughly four months after filing. In Chapter 13, you make monthly plan payments to the trustee for three to five years, then receive a discharge after completing the plan.
You must also complete a debtor education course after filing but before receiving your discharge (11 U.S.C. § 111).
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Start your free intakeFrequently asked questions
- Which Georgia bankruptcy district do I file in?
- You file in the district where you have lived for the greater part of the 180 days before filing. The Northern District (Atlanta) covers 56 counties including Fulton, DeKalb, Cobb, and Gwinnett. The Middle District (Macon/Columbus) covers 70 counties in central and southwest Georgia. The Southern District (Savannah/Augusta/Brunswick) covers 43 coastal and southern counties. You can look up your county on the PACER court locator.
- What is the means test and do I have to pass it?
- The means test (11 U.S.C. § 707(b)) is required only for Chapter 7. It compares your average monthly income over the past six months to Georgia's median income for your household size. If your income is at or below the median, you pass automatically. If it is above the median, you complete a second part listing allowed expense deductions — if your disposable income after deductions is low enough, you still qualify. Chapter 13 has no means test for eligibility.
- What happens at the 341 meeting of creditors?
- About 30 to 40 days after filing, you attend a 341 meeting — named after 11 U.S.C. § 341 — where the trustee asks you questions under oath about your petition and finances. It usually lasts 5 to 10 minutes. In all three Georgia districts, these meetings are currently held via Zoom. Creditors may attend and ask questions but rarely do in standard consumer cases.
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.
- 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.
- 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.
- 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.