Understanding Chapter 7 Bankruptcy in Georgia
If you are considering filing for bankruptcy in Georgia, you need to know how much of your property you can protect through exemptions.
About filing for bankruptcy in Georgia
Filing for chapter 7 bankruptcy is not a decision to take lightly, and although it should be done as a last resort, it can lead to the fresh start that some people need to get back on track with their finances. One of the most common questions people have when they are considering filing for bankruptcy is whether or not they will lose all of their assets as a result. The specifics differ from state to state, but filers are usually entitled to claim certain exemptions during the bankruptcy process that may protect some of their property from creditors.
Chapter 7 bankruptcy exemptions in Georgia
There are several different categories of exemptions which you may be eligible for if you are filing for chapter 7 bankruptcy protection in Georgia, including:
- Homestead exemption: This exemption protects equity in your home by up to $21,500 for an individual filer and $43,000 for joint filers
- Vehicle exemption: Up to $3,500 of exemption can be applied to a vehicle that you own
- Household goods exemption: This exemption is worth up to $5,000 per household, and it is typically applied to furniture or other important household items
- Retirement exemption: Money in qualifying 401(k) and IRA accounts is completely exempt during bankruptcy, provided that it is not removed from the account
- Jewelry exemption: Since the jewelry exemption is relatively modest at $500, most people choose to apply it to their wedding bands
- Wildcard exemption: Up to $600 of exemption can be applied to any property that you own, and you can also take an additional $5,000 wildcard exemption if you refuse the homestead exemption
What to do if you’re thinking about filing for bankruptcy
Every bankruptcy case is different, and which exemptions you take will depend on your personal situation. Since there is no one-size-fits-all answer, you need the help of an experienced bankruptcy attorney who can navigate the complex property exemptions in Georgia. Contact Clark & Washington, LLC today for a free consultation that can help you begin to rebuild your financial future.