Do I Have to Have a bad Credit Score to File Chapter 7 or Chapter 13 Bankruptcy in Georgia?
There are a lot of misconceptions about the requirements for and impact of filing Chapter 7 or Chapter 13 bankruptcy in Georgia. One question that I encountered recently is whether a filer has to have a low credit score in order to file for Chapter 7 bankruptcy?
The answer is NO! You do not have to have any particular credit score to file for Chapter 7 or Chapter 13 bankruptcy in Georgia. While bankruptcy will impact your score, your FICO score or credit score is completely unrelated to your ability to seek bankruptcy protection.
Your income is related to your ability to seek bankruptcy protection. In order to file Chapter 7 or Chapter 13 your will first need to evaluate your income under the “median income test.” The “median income test” compares your income over the past six months prior to the current month to that of a similarly-sized family in your state. If your income is less than the median income you are free to file. If your income is over the median you must evaluate your income under the means test which is used to determine whether you have enough income to fund a Chapter 13 bankruptcy plan. If you do, in fact, have enough money under the means test to fund a Chapter 13 plan you will not be allowed to file for Chapter 7 bankruptcy.
If you are considering filing for bankruptcy please consult an experienced bankruptcy attorney. For a free initial consultation please contact the Law Offices of Charles Clapp at 404.585.0040.