Georgia Bankruptcy Law (GA)
In Chapter 13 cases, Georgia state law exemptions for property also play a vital role
Georgia is expected to be particularly hard hit by the new bankruptcy laws amendments. Specifically, the new means testing requirement became effective in October 2005, and restricts qualification for Chapter to individuals who earn less than the state median income. In the past, almost anyone could file Chapter 7, and in fact, about 75% of all people who filed preferred Chapter 7. Today however, because of the means testing requirement, more than half of all people seeking to file will be excluded from Chapter 7 discharges. The greater percentage is due to the rarity of the top 10% of state residents filing.
In Chapter 13 cases, Georgia state exemptions also play a role, but less central than in Chapter 7 cases. In Chapter 13, debtors must prove, to the satisfaction of the court, that creditors are dealt with in manner that is at least as generous as would be required if the cases where filed under Chapter 7. In practice, this requirement must then rely upon the determination of applicable state law exemptions. Other state law provisions also play a vital role in all cases filed. Liability, property ownership, and collection procedures area all matters determined by state law. Additionally, liability for child support, fines, and state taxes are special items determined under state law that are considered "priority" items.