When you file for bankruptcy, exemptions help protect some of your property from being sold to repay creditors. In Georgia, you must use the state’s own list of exemptions rather than federal ones. These laws outline what you can keep during a Chapter 7 or Chapter 13 case.
Below are some key points to remember.
Homestead and vehicle exemptions
Georgia allows you to protect up to $21,500 of equity in your primary residence. If you file jointly with a spouse, this doubles to $43,000. This exemption only applies to real property you live in, not investment or rental homes.
For motor vehicles, Georgia protects up to $5,000 of equity in one or more cars. If your car is worth more than that, only the amount over $5,000 is considered part of your bankruptcy estate.
Personal property and wildcard exemptions
You can protect up to $5,000 worth of household goods, with a cap of $300 per item. This includes clothing, furniture, and appliances. Jewelry is protected up to $500. Georgia also allows you to keep up to $1,500 in tools of the trade.
There is a wildcard exemption of $1,200, which you can use on any property. You may also apply up to $10,000 of unused homestead exemption toward any other property.
Wages, benefits and retirement funds
Most public benefits, including Social Security and unemployment, are fully exempt. Retirement accounts such as 401(k)s and IRAs are generally protected. A portion of earned but unpaid wages is also exempt under Georgia law.
Understanding what property is protected can help you prepare for the bankruptcy process. Georgia’s exemptions are designed to let you keep essential items while dealing with debt. Seek legal guidance to find out more.