Search Site
Menu

What Property Is Exempt from Liquidation in a Georgia Bankruptcy?

Exemptions from Georgia bankruptcy When someone files for a bankruptcy in Georgia, the court will appoint a trustee who has the power to gather up the debtor’s assets, liquidate them and use the proceeds to partially pay off creditors. However, under state and federal laws, certain property is exempt from the bankruptcy process up to a certain dollar amount and cannot be sold by the trustee.

In other words, even after filing for bankruptcy, typically a debtor can keep all of their assets. Common bankruptcy exemptions are the homestead exemption, the personal property exemption and the wildcard exemption, the last of which applies to any property of the debtor’s choosing. Maximizing these exemptions is crucial because they determine the assets that the debtor will retain free and clear after the bankruptcy is complete.

While some states allow debtors to opt for the federal exemptions, Georgia law requires use of the exemptions provided by state law.

Property exempt from liquidation in a Georgia bankruptcy includes:

  • a homestead exemption of $21,500 ($43,000 if married filing jointly)
  • an automobile exemption of $5,000
  • 75 percent of weekly disposable earnings or 40 times the state or federal hourly minimum wage, whichever is higher
  • IRAs, pensions and alimony and child support payments, but only to the extent reasonably necessary to support the debtor and his or her dependents
  • personal injury recoveries of up to $10,000
  • wrongful death recoveries to the extent needed for support
  • a total of $5,000 for personal property such as clothing, appliances, books, furnishings, household goods and musical instruments, but limited to $300 per item
  • a general wildcard exemption of $1,200. In addition, up $10,000 of the homestead exemption may be used as a wildcard exemption

Notably, Georgia’s exemption scheme applies only to bankruptcy and insolvency proceedings, so you can’t take advantage of them when fighting collection efforts out of court.

At Jeff Field & Associates, we have over 40 years of combined experience helping clients through the process of filing Georgia bankruptcies. We offer all prospective clients a free consultation to discuss their situation and how we can help. Our main office is located in Scottdale and we also have offices in Gainesville, Marietta, Athens, Lawrenceville and Douglasville. To learn more, and to schedule your free consultation today, call 404-381-1278 or contact us online.

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • lawyers
    5.0/5.0

    Jeff Field & Associates, guided me through my Chapter 13 very smoothly. All my accounts and debt are paid off and my credit scores are all above 700! I highly recommend Jeff Field & Associates.

    Read more

    Client

  • lawyers
    5.0/5.0

    There are several words that come to mind when I think of Jeff Fields & Associates, Athens GA, however, I would just list a few. Some of them ate Professional, factual, caring, compassionate, timely, supportive, and detailed. I found myself in a situ...

    Read more

    Client

  • lawyers
    5.0/5.0

    Mr. Fields and his staff was very professional and they explained everything so it was clear to me and they made sure I understood the process. I would recommend they to all my family and friends especially if they need a very good financial relief l...

    Read more

    Client

  • lawyers
    5.0/5.0

    I had an Impeccable experience with Mr. Fields and his associates! I cannot express my gratitude to them. I called for my free consultation and got an appointment that same week. Mr. Fields answered all my questions and listened to my situation thoro...

    Read more

    Client

  • google
    5.0/5.0

    It was definitely a process due to the COVID pandemic but I am so glad I chose Jeff Fields and Associates. Everyone from the office that I worked with was always polite and responsive to all my questions and needs. I was hesitant on filing because I ...

    Read more

    brandoncade928

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form