Answer:

Many people ask us what a Chapter 7 bankruptcy is in Georgia. It is a straight liquidation. That’s what it is termed in the bankruptcy code. A Chapter 7 bankruptcy allows you to discharge your debts. Mainly, it would be unsecured debts, medical bills, credit cards, personal loans, and things like that.

A Chapter 7 or even a Chapter 13 does not discharge student debts; it doesn’t discharge alimony, child support, or some tax debts, for instance, such as income taxes that were accrued within the last two to three years. It does allow you to discharge all other debts. If you have a car payment, of course, you have to keep making your car payment if you wanted to keep the car. You could surrender a car and you would not be required to make any payments, and the same thing with your mortgage, as well. If you have any questions concerning what is encompassed or was is included in a Chapter 7 bankruptcy, just give our office a call. Thank you.