When you’re ready to file for bankruptcy, our Georgia attorneys are here for you
It’s frightening to realize that you no longer have enough money to meet your needs, but the reality is that financial challenges can hit anyone. Job loss, health problems, and divorce are just a few of the most common life events that cause people to suddenly find themselves in troubled financial waters.
While feeling like you’re over your head in debt is deeply upsetting, you do have options for regaining your financial security. Filing for bankruptcy does have some consequences—like a significant credit score drop—but it might be your best option if any of these bankruptcy warning signs ring true for you.
A guide to commonly used forms, legal terms, laws, and other bankruptcy information.
Sign #1: You’ve hit a major setback
Taking on a small amount of debt is normal to manage certain life events such as having a baby or going to college. Financial issues arise when the debt that you had to take on seems insurmountable or unlikely to get better any time soon.
This could be true for you if you’ve lost a job or been forced to take one that has a much lower pay rate compared to your former position. Developing a health issue that takes you out of work is another financial setback that could leave you wondering if bankruptcy is right for you.
Sign #2: Your balances aren’t getting smaller
Right now, you might be doing everything you can to pay your lenders. Making regular monthly payments should help to pay off your debt eventually, but it might not if you have high interest rates or huge loans.
If you notice that you are only able to pay the interest, then you won’t see the balances going down. This is the time to start talking to our attorneys about when to file for bankruptcy since you could be tossing money at a problem that won’t go away without serious intervention.
Sign #3: You use credit cards to cover basic needs
Credit card debt is sometimes viewed as being caused by overspending on unnecessary purchases. However, this is not true for many people. Relying on your credit cards for groceries or gas is common when you are out of work or using your income for paying off other debts. This sadly only perpetuates the cycle of debt as your balances grow.
Bankruptcy might be a solution for helping you spend your income on your basic needs rather than using your credit.
Sign #4: You’ve fallen behind on house or car payments
Access to a home and vehicle are crucial for you to be able to get your finances in order. If you’ve missed your mortgage or car payments, then you might be at risk of losing these vital resources. Depending upon the type of loan you have, you could also risk losing your property to a lender if it was used as collateral.
Filing for bankruptcy could help you to free up funds that you can use to pay for the essentials.
Sign #5: Your savings account is empty
Responsible people sometimes face unforeseen setbacks that cause them financial distress. In an effort to make good on your promises to a lender, you might have resorted to dipping into your savings to cover the bills.
Once you’ve depleted your savings, you may no longer have an option for covering your debt obligations. This can have far-reaching implications on your life if your savings were earmarked for retirement or your children’s college funds.
Sign #6: You are borrowing money to pay essential bills
Sadly, there are lenders out there who capitalize on people who are struggling to pay off prior debts. Predatory lenders may offer you extremely high interest rate loans, or they may require you to put your car up as collateral. You might have generous family members who offer you loans, but accepting them could ruin your self-esteem and your relationships if you are unable to pay them back.
Having to borrow more money to pay off other debts is one of the biggest signs that it might be time to file for bankruptcy.
Sign #7: You keep receiving calls from creditors
Debt collectors are not known for being exceptionally kind. Instead, you might be haunted by phone calls that occur throughout the day. The people who are calling you are required to follow certain rules, but that doesn’t always prevent the fear that you might feel when you hear your phone ring.
Receiving phone calls from multiple creditors is upsetting, and it’s a sign that your credit score might be heavily impacted by your inability to pay off your debt.
Sign #8: Your debt is affecting your life
Your financial health impacts every part of your life. Dealing with harassing phone calls from creditors could cause you to feel depressed and anxious. You may also worry about what will happen if you lose your home, car or other essential property. In some cases, debt can cause you to experience a severe mental illness that requires professional help.
While mental health issues need to be addressed by a counselor, choosing to file bankruptcy can help you regain a sense of control over what is happening. Renewing your hope for a better financial future can help you end the cycle of despair that debt creates.
Sign #9: You’re using one credit card to pay off another
If you find yourself constantly transferring balances or using one credit card to make payments on another, it’s a sign that your debt has become unsustainable. While balance transfers and new lines of credit might offer temporary relief, they only delay the inevitable and often come with high interest rates or fees that make your financial situation worse. Bankruptcy could provide a fresh start rather than continuing the cycle of juggling debts.
Sign #10: You’ve had a wage garnishment or lawsuit filed against you
If a creditor has taken legal action against you, such as garnishing your wages or filing a lawsuit, it’s a major red flag that your financial situation needs urgent attention. Wage garnishment can make it even harder to cover essential expenses, and a lawsuit could result in additional fees, judgments, or even property liens.
Bankruptcy could help stop wage garnishment and provide a path to resolving your debt before legal troubles escalate.
Sign #11: You’re putting off important life decisions because of debt
If overwhelming debt is keeping you from making major life moves—like moving, starting a family, or even switching jobs because you need every paycheck to cover minimum payments—it may be time to consider bankruptcy. Living in constant financial limbo isn’t sustainable, and bankruptcy could provide the financial reset you need to move on with your life.
Sign #12: You have no clear path to paying off debt
If your debts are so overwhelming that you can’t see a realistic way to pay them off within the next 5 to 10 years, it might be time to consider bankruptcy. Simply making minimum payments or hoping for a financial windfall isn’t a sustainable strategy. A bankruptcy filing could allow you to eliminate or restructure your debt, giving you a manageable way forward.
Understand the impact of bankruptcy proceedings on workers’ compensation benefits in Georgia.
FAQs about filing for bankruptcy in Georgia
How much debt do you have to have to file bankruptcy in Georgia?
There is no set amount of debt you need to file for bankruptcy in Georgia. Instead, it depends on your financial situation, including your income, assets, and ability to repay what you owe.
Here’s how it works:
- Chapter 7 bankruptcy is for people who have a lot of debt and little to no income to pay it off. You’ll need to pass a means test to qualify, which compares your income to Georgia’s average income. There’s no minimum debt amount, but this option is usually best if you’re struggling with things like credit card bills, medical debt, or personal loans and will never reasonably be able to catch up on payments.
- Chapter 13 bankruptcy is for people with a steady income who need help reorganizing their debt. It allows you to set up a repayment plan to catch up on things like missed mortgage payments, car loans, or tax debt over time. You can’t have more than $2,750,000 in total debt (as of 2024) to qualify.
Instead of focusing on a specific dollar amount, the real question is whether you can realistically pay off your debt or need legal help to get a fresh start. If you’re unsure which option is best, talking to a Georgia bankruptcy attorney can help you understand your choices.
What disqualifies you from filing bankruptcies?
You may be disqualified from filing bankruptcy in Georgia if:
- You recently filed for bankruptcy. You must wait 8 years between Chapter 7 filings and 2 years between Chapter 13 filings.
- You make too much money for Chapter 7. If your income is too high based on the means test, you may not qualify for Chapter 7 but could still file Chapter 13.
- You have too much debt for Chapter 13. As of 2024, you cannot file Chapter 13 if your total secured and unsecured debt exceeds $2,750,000.
- You committed fraud. If you hid assets, took on new debt knowing you couldn’t pay, or transferred money to avoid creditors, your case could be denied.
- You failed to meet filing requirements. This includes not completing a credit counseling course before filing or not following court orders in a previous case.
What is exempt from bankruptcy in Georgia?
In Georgia, bankruptcy exemptions protect certain assets from creditors under state law (O.C.G.A. § 44-13-100). Key exemptions include:
- $21,500 in home equity ($43,000 for joint filers)
- $5,000 in motor vehicle equity
- $5,000 in household goods
- $500 in jewelry
- 75% of weekly disposable wages (or 40x the minimum wage, whichever is greater)
- Most retirement accounts
- Certain public benefits (e.g., Social Security, unemployment)
There are other exceptions, including a wildcard exemption of $1,200 and up to $10,000 in unused homestead equity. The best way to understand all of the exemptions available in your situation is to discuss your case with a local Georgia bankruptcy lawyer.
Where can I find an experienced Atlanta bankruptcy attorney near me?
Filing for bankruptcy is a huge decision that requires careful consideration. Choosing the right approach can make all the difference in protecting your financial future and maximizing the benefits of debt relief.
At Gerber & Elkins, our knowledgeable Atlanta bankruptcy attorneys can provide the guidance you need to navigate this process with confidence. We’ll help you determine if bankruptcy is the right choice for you, explore your options, and develop a strategy that puts you on the path to financial stability.
Contact Gerber & Elkins Law today for a free consultation, and let us help you take the first step toward a fresh start.
References
Chapter 13 – Bankruptcy Basics. (2024). United States Courts. https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics
What are exemptions? | Northern District of Georgia | United States Bankruptcy Court. (2025). Uscourts.gov. https://www.ganb.uscourts.gov/content/what-are-exemptions
