Bankruptcy is designed to give troubled debtors a fresh start. One of the ways it does that is by allowing debtors to hold onto some of their most valued and necessary possessions. Known as exempt assets, they are not included in the bankruptcy estate and cannot be sold or repossessed by a lender to cover debts. The rationale for these exemptions is that a debtor shouldn’t be left without basic needs such as shelter, clothing, transportation and tools of his or her trade.
In some states, debtors can opt to use exemptions provided in federal bankruptcy law. However, Georgia residents must use the state’s list of exemptions. Two commonly used ones are:
- The homestead exemption — This allows an individual to protect up to $21,500 of the property that he or she, or a dependent, uses as a residence. The homestead exemption is $43,000 for a married couple when they file a joint petition for bankruptcy. If the equity on your residence is less than the maximum homestead exemption to which you are entitled, you can use up to $10,000 of the remaining exemption to protect other property.
- The wildcard exemption — This protects up to $1,200 worth of property of the debtor’s choosing, along with any leftover value from the homestead exemption not to exceed $10,000.
The wildcard exemption is so named because it provides flexibility. It may be used to cover cash assets or to augment other exemptions, thereby protecting property that might otherwise be included in the bankruptcy estate. For example, Georgia allows for an exemption of up to $5,000 in motor vehicles and another $5,000 in household furnishings and other personal items (with each piece not to exceed $300 in value). An added $1,200 through the wildcard exemption can make the difference between keeping an important piece of property or or it being sold.
The attorneys at Jeff Field & Associates are prepared to help you utilize the full scope of exemptions made available by Georgia law and find other solutions that can help you move forward with your life. For assistance determining if bankruptcy is the right move for you, schedule a free initial consultation with a member of our team. Call 404-381-1278 or contact us online to make an appointment. Our offices are located in Scottdale, Marietta, Gainesville, Douglasville, Lawrenceville and Bogart.
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5.0/5.0Starting the process of bankruptcy can seem scary. However, working with Jeff Field & Associates made it very easy. They explained everything so clearly and helped my spouse and I, walk through every step of the process. Definitely recommend!
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I highly recommend them the did a great job with my case and made the steps very easy they worked with me every step of the way on completing all my paperwork highly recommended them
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A few months ago, I had to file for bankruptcy, and this team made the whole process so smooth. They answered every single question I had and walked me through everything step by step. Honestly, all I had to do was sit back and let them handle it; Th...
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An exceptional bankruptcy attorney—professional, compassionate, and highly knowledgeable. They guided me through every step with clarity and confidence, easing my stress. I truly felt supported and well-represented. Highly recommend their services ...
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I was referred to Jeff Field by a co worker my experience with them was effortless after initial contact everything else flowed well. I was able to ask questions, and received answers immediately. Everything was done by email and over the phone very ...
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