Georgia Bankruptcy Exemptions – whether you are considering a chapter 7 or a chapter 13, certain kinds of personal property are exempt from creditors, each state has their own list of bankruptcy exceptions, some common Georgia Bankruptcy Exemptions are (per person):
- $21,500 equity in your home
- $3,500 equity in a motor vehicle
- $5,000 of clothing and household goods
- $600 plus any unused amount of the home exemption (up to $5,000) to protect any other property
- $1,000,000 of funds in a 401K, IRA or other ERISA qualified retirement plan
- $500 of Jewelry
- $1,500 of tools of the trade
The way the Georgia Bankruptcy Exemptions work is, for example, if you own a car worth $3,000 and the bankruptcy exemption is $3,500, if you file for Chapter 7 bankruptcy, you will get to keep your car. In the same example, if your car is worth $15,000, the bankruptcy trustee will likely sell your car, pay off your car loan with the proceeds, pay you $3,500 for the bankruptcy exemption, and pay the rest to your unsecured creditors.
You need also keep in mind that the bankruptcy trustee will incur costs in selling your property. So, if your equity in the property is not significantly more than the bankruptcy exemptions, the bankruptcy trustee is unlikely to sell the property. For example, if you own a car worth $4,500 and the bankruptcy exemptions for the car is $3,500, the bankruptcy trustee is unlikely to sell the car. This is because the costs of moving and selling the car would probably be greater than $250 – so the bankruptcy trustee would end up with nothing to pay your unsecured creditors.
If you are interested in learning more about Georgia Bankruptcy Exemptions, Contact CJ and the Remboldt Law Firm, LLC for a FREE consultation at 404-348-4081.