Georgia bankruptcy is quite common, with thousands filing every year. All too often filers go into bankruptcy not knowing all the laws. Will you lose all your assets if you file Georgia bankruptcy? This is not an obvious question. Until the past few years Georgia bankruptcy code was very strict, one of the worst in the country for filers hoping to keep property, cars, and other assets. It has gotten better. This guide will define the exemptions for you, note other rules, and help you search for legal help.
Will you lose everything?
No, rarely will you lose much in a Chapter 7 or Chapter 13 bankruptcy; usually you lose nothing. That does not mean if you have a lot of assets you will avoid losing specific valuable properties and assets. Also, it does not mean you are necessarily eligible for certain forms of bankruptcy. But Georgia bankruptcy law, which is enforced in federal courts but is in fact unique to Georgia, allows for you to keep some if not all of your assets. As no two bankruptcies are alike, you should consult with experienced legal counsel.
Will you lose your home?
This depends on the equity in your home. Equity is the value of the home minus what you’ve paid. The more you owe, the less equity you have. Under Georgia bankruptcy code, $10,000 of your equity is exempt for your home, while if you are married and filing jointly, it can be $20,000 of exempt equity. If you have a lot of equity in the home, filing Chapter 13 bankruptcy may be better, or you can negotiate with your trustee to keep the home.
Will you lose your car?
Georgia bankruptcy code allows for $3,500 in vehicle equity. So, as noted before, you can keep a car you owe a lot of money on. If you’ve paid $5,000 toward the car, and owe $20,000, $3,500 of that $5,000 is exempt and the rest can be negotiated. You can always negotiate with your Chapter 7 trustee to keep assets like homes and cars.
What other assets might you lose?
You have many other assets and money which can be exempt. This depends on the nature of the case. For example, your 401K plan may be exempt, even if the value is over $50,000. You also get $5,000 in exempt home assets, such as your TV or furniture. The law says no single item can be valued over $300, so if you recently bought a $1,200 TV, you may have to negotiate to keep it.
Who can help?
You have a lot of negotiation options in Chapter 7 bankruptcy, and all your assets are protected under a Chapter 13 repayment plan. For example, sometimes you can use extra home equity on other assets. Or, in the case of Chapter 13, you pay on all these debts over a manageable period. These laws change from year to year and can be difficult to understand. If you are unsure of where to start, consulting with a professional Georgia bankruptcy attorney can help you make the decision on filing bankruptcy, help you protect your assets, and also discharge as much debt as possible.
