Georgia Bankruptcy Exemptions: What You Can Keep

If you’ve been a Georgia resident for two years before filing Chapter 7, you’ll use the state’s exemptions to protect your property. Exemptions are laws that outline what property you can keep during bankruptcy.

Georgia’s homestead exemption is $21,500. The motor vehicle exemption is $5,000. Georgia also has a wildcard exemption you can use to protect other personal property up to $1,200.

Maximize Your Georgia Bankruptcy Exemptions

Understanding how to claim your homestead, wildcard, and vehicle exemptions properly can mean the difference between keeping or losing your property. Speak with a Georgia bankruptcy attorney for free to protect everything you're entitled to keep.

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If you don’t use the full homestead exemption, you can apply up to $10,000 of the unused portion to protect personal property.

Why Are Exemptions Important in Chapter 7 Bankruptcy?

Many people think filing bankruptcy means giving up all your property. Creditors may have told you this when trying to collect on your debt. But it simply isn’t true.

Most people who file for bankruptcy keep all of their property. They do so by claiming Georgia’s bankruptcy exemptions. Exemptions are laws that outline what types of property you can protect when you file Chapter 7.

Exemptions ensure you can maintain a basic standard of living even after filing bankruptcy. You get debt relief without losing everything you own.

Does Georgia Allow You To Use Federal Bankruptcy Exemptions?

No. If you file Chapter 7 in Georgia and you’ve been a resident for at least two years, you must use the state bankruptcy exemptions.

Each state creates its own exemptions. The federal government also has a set of bankruptcy exemptions. The state decides whether you get to choose between federal and state exemptions. In Georgia, you must use the state’s exemptions.

One exception: You can use the federal non-bankruptcy exemptions to protect certain retirement accounts and disability benefits.

To use the Georgia bankruptcy exemptions, you must be a Georgia resident for at least 730 days when your bankruptcy case is filed. Congress implemented this rule to stop filers from moving to a different state just to use more favorable exemptions.

What Are Georgia’s Bankruptcy Exemptions?

Exemptions are laws that help you protect property in three major areas:

Real property, including your home or land you own
Personal property, including household goods, tools of the trade, and your car
Money benefits, including retirement accounts, wages, and other benefits

Real Property: Georgia’s Homestead Exemption

The homestead exemption in Georgia is $21,500. You can use this exemption to protect real estate, personal property, or a co-op if you or your dependent use it as a primary residence.

Georgia’s homestead exemption is doubled when both spouses have an interest in the home. That means married couples can protect up to $43,000 in home equity.

The homestead exemption covers the equity you have in your home. Equity is calculated by subtracting what you owe on the home from its value.

For example, if your home is worth $200,000 and you owe $180,000 on it, you have $20,000 of equity. In this case, the homestead exemption would fully cover your equity.

Source: Georgia Code 44-13-100(a)(1) & (a)(6), 44-13-1

Georgia’s Personal Property Exemptions

Georgia’s personal property exemptions cover many different kinds of things. The law allows you to exempt up to $5,000 total for various types of personal property. No single item can be valued at more than $300.

Covered items include animals, crops, clothing, appliances, books, furnishings, household goods, musical instruments, and health aids.

You can fully exempt a burial plot if you haven’t used the homestead exemption.

There is a $500 exemption for jewelry. There’s also a $1,500 exemption for tools of the trade. Tools of the trade include tools, books, and other supplies necessary for your profession.

Source: 44-33-100(a)(4), 44-13-100, 44-13-100(a)(3)

Motor Vehicle Exemption

Many people thinking about filing Chapter 7 worry about losing their car. The motor vehicle exemption in Georgia allows you to protect a motor vehicle up to $5,000.

Again, this number references the equity you have in the car. To calculate your equity, take the current value of the car minus what you owe on it. The difference is the equity.

For example, if your car is worth $10,000 and you owe $6,000 on it, you have $4,000 in equity. In this case, your car would be fully protected by the state exemption.

Source: Georgia Code 44-13-100(a)(3)

Georgia’s Wildcard Exemption

Georgia also has a wildcard exemption. You can use this to protect any personal property not otherwise covered by other exemptions. The wildcard exemption allows you to protect up to $1,200 in any property.

Additionally, if you don’t use the full homestead exemption, you can apply up to $10,000 of the unused portion to protect personal property. Speak with a bankruptcy attorney for free to learn how to maximize your exemptions.

Source: Georgia Code 44-13-100(a)(6), 44-13-1

Money Benefits

Georgia fully exempts most types of monetary benefits. Some benefits, such as wages, are only exempt up to a certain amount.

Fully Exempt Benefits

The following types of public assistance can be exempt up to the full monetary value:

Workers’ compensation
Unemployment compensation
Veterans’ benefits
Social Security
Crime victims’ compensation
Local public assistance
Old age assistance
Aid to the blind
Aid to the disabled

Georgia residents can use the federal non-bankruptcy exemptions to protect their retirement accounts up to the full amount. These accounts include:

Tax-exempt retirement accounts
401(k)s, 403(b)s, profit-sharing, and money purchase plans
SEP and SIMPLE IRAs, IRAs, Roth IRAs, ERISA-IRAs, and qualified benefits
Nonprofit corporations’ employees, public employees, other pensions
IRA payments needed for support

Alimony and child support needed for support are both fully exempt.

Partially Exempt Benefits

Some money benefits can only be exempt up to a certain amount. Unmatured life insurance policy is exempt up to $2,000 of equity. Disability or health benefits are exempt up to $250 per month.

Your wages are also exempt up to a certain amount. You can keep up to 75% of earned unpaid weekly earnings or 40 times the minimum wage, whichever is higher. In some cases, the bankruptcy judge may choose to increase this amount.

Source: 11 U.S.C § 522 and Georgia Code §§ 33-29-15, 44-13-100, 18-4-20

Need Help Filing Chapter 7 Bankruptcy in Georgia?

Exemptions are important because they ensure your property is protected when you file bankruptcy. Learning about them may feel complicated or confusing. Help is available if you need it.

Understanding exemptions is crucial to a successful bankruptcy filing. Speak with a bankruptcy attorney for free to discuss your specific situation. An experienced attorney can help you maximize your exemptions and protect your property.

Professional guidance ensures you claim all available exemptions correctly. You deserve a fresh financial start without unnecessary losses.

Frequently Asked Questions

What is the homestead exemption in Georgia bankruptcy?

Georgia's homestead exemption is $21,500 for individuals and $43,000 for married couples. You can use this to protect equity in your primary residence, including homes, personal property used as a residence, or co-ops. If you don't use the full amount, you can apply up to $10,000 of the unused portion to protect other personal property.

Can I keep my car if I file Chapter 7 bankruptcy in Georgia?

Yes, in most cases. Georgia's motor vehicle exemption protects up to $5,000 in equity. If your car is worth $10,000 and you owe $6,000, you have $4,000 in equity, which is fully protected. Even if you have more equity, you may be able to use the wildcard exemption to protect additional value.

What is Georgia's wildcard exemption?

Georgia's wildcard exemption allows you to protect up to $1,200 in any personal property not covered by other exemptions. Additionally, you can use up to $10,000 of any unused homestead exemption to protect personal property. You can apply the wildcard to vehicles, electronics, jewelry, or any other property you need to protect.

How long do I need to live in Georgia to use state exemptions?

You must be a Georgia resident for at least 730 days (two years) before filing bankruptcy to use Georgia's exemptions. Congress implemented this rule to prevent people from moving to states with more favorable exemptions just before filing. If you haven't lived in Georgia for two years, different rules apply.

Are retirement accounts protected in Georgia bankruptcy?

Yes, retirement accounts are fully protected. Georgia residents can use federal non-bankruptcy exemptions to protect 401(k)s, 403(b)s, IRAs, Roth IRAs, SEP and SIMPLE IRAs, and other qualified retirement accounts up to their full value. Social Security, veterans' benefits, and disability benefits are also fully exempt.

Georgia Bankruptcy Exemptions: Protect Your Property in Chapter 7