Notes About Georgia Exemptions
How Exemptions Work In Georgia
Because the federal exemptions are not available in Georgia, residents must use the Georgia state law exemptions, plus the federal non-bankruptcy exemptions.
If you have no real estate, or don't need to use all the $21,500 homestead exemption, you can use up to $10,000 of unused homestead exemptions to protect personal property . The $5000 personal property seems generous, but it's limited to $300 per item, .
Vehicles exempted to $5,000 is good, and If not using the homestead for real estate, you can use up to $10,000 of the unused amount as a wildcard exemption for any other property. And you can protect $2,000 of other property, and $1,500 in tools of trade
Georgia's neighbors treat debtors more generously. Mississippi offers its residents a blanket $50,000 wildcard exemption, while Florida threats those with real estate with a homestead that exempts any value of real estate limited only by lot size.
The Georgia homestead of only $21,500 may not protect much, although spouses can double it even if one spouse files individually. (Bankruptcy only: $43,000 if title to property is in one of two spouses who is a debtor. Ga. Code Ann. § 44-13-100(a)(1) )
Other Discussions of Georgia Exemptions On The Web
Both UpSolve and Nolo have discussions of Georgia bankruptcy exemptions
Exemptions in Chapter 7 and Chapter 13
You can protect property covered by an exemption regardless of whether you file for Chapter 7 or 13. But each chapter treats nonexempt property—things not covered by an exemption—differently.
- In Chapter 7 bankruptcy, the bankruptcy trustee sells nonexempt property and distributes the proceeds to creditors.
- In Chapter 13 bankruptcy, you keep everything you own. However your repayment plan must pay the value of the nonexempt property equity, or your disposable income, whichever is more.
The different approaches ensure that creditors receive the same amount regardless of the chapter filed.
Sources of Exemption Laws
Bankruptcy law is federal, but the laws regarding debts, collection, and property have traditionally resided in state law.
State Exemption Laws
Every state has its own set of exemptions laws.
These laws specify what kinds of property are "exempt from attachment" by a creditor in those states. These laws informally known as "exemption laws."
Where State Exemption Laws Are Found
State exemption laws are often are collected under one section of a statute or chapter of the state statutes, but miscellaneous exemption provisions commonly exist throughout the laws of a state — in various provisions about pensions, insurance, and government benefits, for example.
Federal "Non-Bankruptcy" Exemptions
In addition to your state exemptions, various kinds of federal benefits, retirement accounts and other things are exempt under federal law, separate and apart from the Federal Bankruptcy Code — Title 11 of the United States Code (11 U.S.C.).
In all but 19 states, you must use these laws to protect your property, like your car and your house.
Federal Bankruptcy Exemptions Under Section 522 —
an Alternative System Available in 19 States
In 19 states you have the option of using the Federal Bankruptcy Exemptions found in (11 U.S.C. Section 522(d)) Alaska, Arkansas, Connecticut, District of Columbia, Hawaii, Kentucky, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, New Mexico, Texas, Vermont, Washington, Wisconsin.
Which exemptions system you should choose may depend on the particular facts of your situation, where you live, and what kinds of property you own.
We have categorized state and federal exemptions by category
Real Estate: Homestead
Doubling Exemptions for Joint Filers?
When a married couple files for bankruptcy jointly, federal law and the laws of many states allow them each to claim the full amount of an exemption.
(11 U.S.C. § 522.) Because a couple gets to claim twice the amount available to those who file alone, this practice is informally known as “doubling.”
Not all states allow doubling, however. (California, for example, does not.) And some states allow married couples to double only certain exemptions (for example, they might be able to double personal property exemptions but not the homestead exemption). In the charts that follow, we indicate exemptions that cannot be doubled (and states that don’t allow doubling at all). Unless you see a note stating that you cannot double, assume that you can.