Perhaps the biggest concern for those contemplating bankruptcy is exactly what they can keep. In Georgia, though bankruptcy laws are based on federal laws, certain state codes and laws are different. If you are unsure if you’ll be able to keep your home, car, high value assets, any disability benefits, even personal injury compensation, this blog guide can help.

Georgia Foreclosure and Debt
In Chapter 7 bankruptcy, technically your home can be used to pay off your debts, via a liquidation. However, quite often what happens is there is no equity in the home. Equity is the current value of your home minus the price you paid minus the payoff balances on all liens and mortgages. A bankruptcy will not discharge the lien a lender has on the property. The good news is lenders are not out to take your home; if they foreclose, they lose money. If you can somehow afford to make payments on the mortgage, you can keep the home. If you have less than $5,000 in equity on the home, you qualify for the homestead exemption, allowing you to keep the home and pay on it.

In some cases, Chapter 13 bankruptcy can be better in protecting your home and being able to afford the mortgage. This is a debt repayment plan with a goal for you to lose little if any assets.

Keeping Your Car
If you have no equity in your car, much like your home you can likely keep it.  You get the equity for your car by subtracting car loans and the car’s current value. In this example, the trustee will not take your car. Even if you have equity in your car, you can still likely keep it. The number you need to know is $3,500 under current state law; if you have more than $3,500 in equity, you can pay based on how much you owe minus the $3,500 number. So if you had $5,000 in equity, you would pay $1,500 to your trustee to keep the car. You still have more options, so consulting with an experienced Georgia bankruptcy lawyer can help.

Other Assets
You likely have more assets beyond your home and car. This is where the laws become difficult to master, as there is a long list of items you can keep and guidelines for how you keep them. Technically, if you have other properties, these can be taken and sold to pay off your debts (making Chapter 13 a better option). You can keep certain amounts of personal property value, up to $10,000 for you as an individual or $20,000 for you and your spouse if you file jointly. You can also keep most of the assets you have in your home, up to $300 per item for a total value of $5,000 or less.

Benefits
Social security, unemployment compensation, local public assistance, veteran’s benefits, disability, illness, or unemployment benefits are all exempt from being taken. This makes sense, really, because sometimes this is your entire income, whether retired, disabled, or recently unemployed.

Getting Legal Help
If you are unsure of the many complexities above, that’s understandable. These change from year to year, and almost always require a lawyer’s assistance to help you with. For local Georgia bankruptcy help, go with an experienced lawyer you can communicate well with, who has the time to spend helping your case and answering your questions, and who offers his or her expertise for a fair price.