If you’re overwhelmed by debt and wondering what bankruptcy actually means, you’re not alone. Every day, individuals and families across Georgia find themselves buried under bills they can’t pay — and searching for a way out.
Bankruptcy is a legal tool designed to help you hit reset. It protects you from creditors, eliminates many types of debt, and gives you the opportunity to rebuild.
Here in Georgia, there are two main types of bankruptcy available to most people: Chapter 7 and Chapter 13. Each one works a little differently — and understanding those differences can help you figure out the best path forward.
Who Can File for Bankruptcy?
Most people who file are dealing with:
- Credit card debt
- Medical bills
- Personal loans
- Missed mortgage or car payments
- Lawsuits or wage garnishment
- Business-related debt (for sole proprietors)
Bankruptcy is available to both individuals and couples. Some clients come to us after months of stress — others reach out before things spiral further. Either way, we’re here to walk you through it.
Chapter 7 Bankruptcy – A Clean Slate
Chapter 7 bankruptcy is what most people think of when they hear “bankruptcy.” It’s designed to eliminate unsecured debts like:
- Credit cards
- Medical bills
- Personal loans
- Past-due utility balances
In many cases, you can wipe out this debt in just a few months.
The best part? In Georgia, most people who file Chapter 7 keep everything they own — their home, car, retirement accounts, and personal belongings — thanks to state exemption laws.
Learn more about Chapter 7 bankruptcy here.
Chapter 13 Bankruptcy – A Plan to Catch Up
Chapter 13 works differently. It’s designed for people who are behind on mortgage or car payments, owe taxes, or have non-dischargeable debts.
It lets you create a 3–5 year repayment plan based on your income. You’ll make monthly payments to the court — and at the end, any remaining eligible debt is discharged.
It’s often the best option if you want to:
- Stop a foreclosure
- Keep your vehicle
- Repay IRS or state taxes
- Catch up on child support
Learn more about Chapter 13 bankruptcy here.
What Happens When You File?
Here’s what the process generally looks like when you work with our office:
- Free consultation. We’ll review your situation and explain your options.
- Filing your case. Once filed, the court issues an “automatic stay” — which legally stops all collections.
- Meeting of creditors. You’ll attend a brief court meeting (usually by phone or Zoom) with a bankruptcy trustee.
- Discharge or payment plan. Chapter 7 leads to discharge in a few months. Chapter 13 involves completing your plan first.
Will You Lose Everything?
Not at all.
Georgia law protects many common assets — and most of our clients keep:
- Their home (up to a certain equity amount)
- A vehicle
- Household items and furniture
- Retirement accounts
- Clothing and tools for work
We’ll walk you through what’s protected and what isn’t during your consultation.
How Bankruptcy Helps
Filing for bankruptcy can:
- Stop collection calls
- End wage garnishments
- Prevent foreclosure or repossession
- Eliminate most unsecured debts
- Give you room to breathe again
It’s not about failure — it’s about rebuilding.
As Attorney H. Brooks Cotten often says:
“Most of my clients tell me they wish they’d called sooner.”
Is Bankruptcy Right for You?
It depends — but the best way to find out is to talk to someone who’s been helping Georgia residents through this process for over 25 years.
If you’re feeling overwhelmed, uncertain, or just curious about your options, we’re here to help — without judgment.
Get Your Questions Answered
H. Brooks Cotten is a trusted Newnan bankruptcy attorney who serves clients across Georgia. We focus exclusively on helping good people get through tough financial times — and come out stronger.
You don’t have to figure this out alone.
👉 Schedule a free consultation here
📞 Or call us directly at 770-683-3303
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