Within the last few weeks, there have been two favorable developments for Georgia bankruptcy filers. First, as of May 1, 2012, the median income tables for Georgia families has been adjusted upwards, reversing a longstanding trend. Second, on May 2, 2012, Georgia Governor Nathan Deal signed Senate Bill 117 which raised the Georgia homestead exemption from $10,000 to $21,500. Here is why both of these developments are positive for Georgia bankruptcy filers:
Upward Adjustment of Median Income numbers – the median income tables are used in means test calculations to determine whether a bankruptcy filers is eligible for Chapter 7, and, if not, what he has to pay back to unsecured creditors in Chapter 13. Prior to May 1, 2012, the median income for a family of 4 in Georgia was $64,223. In cases filed on May 1, 2012 and thereafter the median income for a family of 4 is $66,250.
This means that it is now slightly easier to qualify for Chapter 7 and that the payback to unsecured creditors in Chapter 13 does not have to be quite so high.