Chapter 7

• A Chapter 7 bankruptcy is often called a straight bankruptcy because it typically involves debtors who have few assets and no means of repaying what is owed. To be eligible for Chapter 7 in Georgia, you must first pass the means test. This test compares your income for the previous six months to the median income for your family size. As of 2010, a single debtor in Georgia may earn a maximum median income of $40,546. A family of four is allowed a maximum median income of $68,258. In a Chapter 7 bankruptcy, any nonexempt property you have is seized and liquidated, and the proceeds are used to pay your creditors. As of 2010, the filing fee for a Chapter 7 case in Georgia is $299.
  
  

Chapter 13

• If you are unable to pass the means test, you may consider filing for Chapter 13 bankruptcy instead. In a Chapter 13 bankruptcy, you keep your assets and you agree to repay some or all of your debt over a three-to-five-year period. The length of your repayment plan is determined by your median income and the total amount of debt you have. Chapter 13 can be particularly beneficial to homeowners who are facing foreclosure or who are interested in stripping a second mortgage. If you owe tax debts, alimony or past due child support, Chapter 13 can help you bring these debts current. As of 2010, the filing fee for a Chapter 13 case in Georgia is $274.
  
  

Chapter 11

• Chapter 11 bankruptcy allows struggling business entities to reorganize and create a plan for repaying their debts while still maintaining day-to-day operations. In Georgia, you may file Chapter 11 as a partnership, sole proprietorship or corporation. There is no limit to the amount of debt you can include in a Chapter 11 bankruptcy, unless you are filing specifically as a small business debtor. In these cases, as of 2010, your total debts may be no more than $2,190,000. If a business that has filed for Chapter 11 protection is unable to successfully reorganize or create a plan for repaying debts, they may convert their case to a Chapter 7 petition. In this situation, the business is dissolved and any assets are liquidated and distributed to creditors. A Chapter 11 petition costs $1,039 to file in Georgia, as of 2010.
  
  

Chapter 12

• If you are a family fisherman or family farmer who makes more than 50 percent of your annual income from a commercial fishing or farming operation, you may be eligible to file for Chapter 12 bankruptcy. Chapter 12 is similar to Chapter 13 in that debtors agree to repay their debts over a three-to-five-year period. To qualify for Chapter 12, your debts must be no more than $3,792,650 for farmers and $1,757,475 for fishermen, as of 2010. Chapter 12 applies specifically to business debts generated from the fishing or farming operation, rather than personal debts. As of 2010, the filing fee for a Chapter 12 case is $239.