Bankruptcy Blog | Georgia Debt Law » Bankruptcy Exemptions

Is a 401k Exempt in a Georgia Bankruptcy Filing?

admin — Sat, 24 Sep 2011 15:46:30 +0000

Bankruptcy lawyers get all sorts of questions from their clients. People filing bankruptcy want to keep as many assets as possible within their estate. A dedicated bankruptcy lawyer will do just that. One particular area that can make a big difference in a person’s estate is how the courts view their 401k and whether it is treated as an exempt or non-exempt asset.

Question: Is a 401k Plan Exempt in a Georgia Bankruptcy Filing?

Answer: Yes. In Georgia, several bankruptcy judges in Atlanta have upheld the decision that both 401k plans and pensions are exempt. Meaning you are allowed to keep these assets even if filing for bankruptcy in Georgia.

Why is a 401k Plan an Exempt Asset in a Georgia Bankruptcy Filing?
Retirement accounts such as 401k plans have a penalty if the account holder makes an early withdrawal. Atlanta bankruptcy lawyers have regularly been able to petition judges to keep 401k plan assets exempt. By keeping these assets exempt, a bankruptcy lawyer is able to help protect their client’s retirement and keep their 401k assets separate from being eligible to be used in a repayment plan.

Have a question about how to protect your 401k plan through a bankruptcy filing in Georgia? Considering a Chapter 7 or Chapter 13 personal bankruptcy filing? Berry & Associates has 10 bankruptcy law offices throughout metro Atlanta. The law firm has helped over 25,000 clients with personal bankruptcy cases including Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Chapter 7 Exempt Property

admin — Sun, 18 Sep 2011 14:14:26 +0000

When a person files for Chapter 7 bankruptcy in Georgia they commonly ask their lawyer about how much personal property that they can keep. This question can be a complex process and a complicated question. To ensure that you maintain the most property possible your lawyer will request that you fill out an evaluation form. This form will help determine what assets you have that can be considered exempt property (i.e. items that you can normally keep) per the Georgia Chapter 7 law.

Common Examples of Chapter 7 Exempt Property:

Single car or truck (up to a certain value)
Essential clothing
Essential household items
Essential home appliances
Basic furniture
Certain jewelry (including wedding rings) >> value is limited
Tools required to perform your professional job**

** A computer may qualify as exempt property, including as a tool potentially.

In the above examples you’ll notice that there is alot of potential judgment that needs to occur to determine what is exempt and who must be sold. Having a skilled lawyer that is familiar with the bankruptcy code will help ensure you keep as much personal property as possible. Chapter 7 is a great opportunity for a fresh start, but that does not mean you shouldn’t focus on maintaining as much personal property as possible. Remember when discussing the personal property that you own with your lawyer to be open and honest. Your lawyer is there to help you and the more information you provide him, the better work he and his team will be able to you.

Related: Read about Chapter 7 Debts that can be Discharged.

For additional questions or to speak to a Georgia Chapter 7 bankruptcy lawyer, contact Berry & Assocaites. With over 10 offices located throughout metro Atlanta there is sure to be an office near your home.

Georgia Bankruptcy Exemptions

jmalewitz — Wed, 11 Aug 2010 20:28:01 +0000

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.

Dealing with Creditors in Atlanta

Lance — Thu, 09 Jul 2009 15:06:13 +0000

Are you the victim of persistent phone calls or threatening conversations? When considering bankruptcy, dealing with creditors can be extremely stressful, but did you know you’re protected from specific practices? As a consumer, you’re protected from several abusive or harassing techniques under the Fair Debt Collection Practices Act. In addition to this federal law, Georgia state law also prohibits specific debt collection practices. But understanding which ones apply to you can be difficult.

As a citizen in Atlanta, do you know what your rights are when filing bankruptcy? How will bankruptcy affect your student loans, taxes and your mortgage payments? Does filing change the status of your business debts, lease agreements or credit card payments? Should you qualify for Chapter 7 Bankruptcy or Chapter 13, and what impact will it have on your personal and your business goals?

To make the most efficient recovery from your economic situation, you need an Atlanta bankruptcy attorney with a deep knowledge of bankruptcy exemptions. A skilled bankruptcy attorney will equip you with the knowledge of how your assets will be affected in both the short term and the long term. Their counsel will also give you confidence when faced with a creditor who is using harassing techniques.

As your advocate, an experienced bankruptcy attorney will prepare you for court hearings, options to consider when dealing with creditors, including what type of monthly payment plan is affordable (depending on how you file).

Don’t face bankruptcy alone. Surround yourself with a skilled team that can help you weather the storm and establish a solid financial future.