Georgia Bankruptcy Exemption Laws

In 2009, many significant changes have been made in Georgia bankruptcy exemption laws. Though federal laws have also made a detailed provision regarding property exemptions under chapter 7, every state is allowed to have its own set of laws in this regard. Georgia has enacted completely different provisions for these cases. If your debts have become so huge that you are unable to repay the same, you may have to use bankruptcy as the last option. In such cases, you will be able to protect your interest only if you are well aware of the legal provisions regarding which type of assets you can keep, which properties will be sold off, and which debts will not be discharged even after going bankrupt officially.

Real Or Personal Property

Married couple who are filing joint bankruptcy can get homestead exemptions up to $20000. An individual however can only get $10000 of his/her home equity exempted. It means if the current value of your home is $40000 and you owe $15000 in mortgage, you have home equity worth $25000, but you will be able to exempt $10000 only. However, if you owe $36000 in mortgage, the home equity will amount to $4000 only and you will be allowed to exempt only that much amount of money. Georgia bankruptcy exemption laws allow you to use the unused homestead exemption amount (in this example, $6000) to exempt personal properties of that much value. In most cases, the property is sold off and the trustee gives you the exempted value in cash.

Personal Properties

The collective value of the personal properties that you can keep has been capped by a maximum amount of $5000. But, you will be able to keep only those assets that are worth $300 or less. Any asset that is valued at more than $300 is sold off and you are paid in cash. The assets that fall under this category may include clothing, television, home appliances, and other such things. Jewelry up to the value of $500 is also exempted under the Georgia laws. Besides that, if you have unused homestead exemption, you can use the same to get some more personal properties exempted.

Public Benefits

If you receive certain types of public benefits, you can keep receiving the same in full. Public benefits (such as prescribed health aids, retirement accounts, government benefits, disability aid, Workers’ compensation, and others) are fully exemptible under Georgia bankruptcy exemption laws. Besides that, life insurance, child support, and proceeds from alimony are also likely to be exempted 100%.

Cars And Vehicles

You can keep cars and vehicles up to the value of $3500. If the current value of your car is $10000 and you owe $5000 on it, you will be able to keep only $3500. But, if you owe $8000 on it, you can keep only $2000. In either case, the automobiles will be sold off and you will get cash.

Tools Of Trade

Georgia has specific provisions for exemptions of tools of trade also. The maximum value that can be exempted under this category for an individual is $1500. But, in case of a married couple who jointly file for bankruptcy, this amount can just get doubled ($3000).

There are also provisions for wild card exemptions, as per which you can use any unused portion of homestead exemption to exempt properties that fall under other categories. The Georgia allow you to use wild card exemptions up to $5,000 of the unused homestead exemption plus $600.

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Posted in Bankruptcy, Bankruptcy Exemptions, Bankruptcy Laws | 8 Comments »

8 Responses to “Georgia Bankruptcy Exemption Laws”

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  4. Clement Goldthwait says:

    You would have to have a specific agreement with the realtor (written agreement). But remember ultimately you are responsible for the mortgage and your credit is at risk if you default.

  5. scott says:

    A pay day loan is nothing but a small amount that you can take in advance from the creditor for short period of time. This loan is taken back with a very high interest. The rate of interest is very high that would be impossible for person to pay on time and loan is extended with additional fees. If the person is unable to repay the loan then in that case it would be extended with additional fees. And the borrower fence in deeper debt. Sometime when the borrow is unable to pay the loan on time then sometime they take another loan in order to pay the loan and fenced in deeper debt .pay day lender provide the solution to person like(people who have small income, single parent, the minor, and ole aged person) who have cash management problem. In Georgia by presenting PDC a person can get pay day loan in a few minutes. If a person who have a bad credit history can also obtain a loan when there is a crash crisis. In that case the borrower had to pay the more fees and the annual rate of interest is very high that vary between 360% – 780%. Therefore pay day loan Georgia becomes a more profitable money lending business in USA. This business has a profit margin about 34 % pre-tax return.

  6. scott says:

    Georgia passed a law on April 15th, 2004 that states the person who takes payday loan and if he/she would not be able to pay the loans on time then the punishment is one year prison and would be taken $5000 fine per loan. The person who did not follow the prescribed law then a very hash penalty would be charged. The new pay day lending law charge will annual percentage rate of rate of interest of 16%.

  7. scott says:

    There are some provisions which are included in Georgia pay day loan. The borrowers have to pay to the lenders three times of the total amount including interest and charges and also the cost of court and the fees of lawyer. The district attorney may keep some of the amount of any recovery for their office budget. The tax would be charge 50% of the pay day loan as penalty. It would be noted that the lenders will not be able to obtain the certificate if they want to do a business in Georgia from the department of baking and finance. There is also a condition the lenders can not collect the loan from any of his military customers or his family if the member ahs been deploy on combat position. Also the lender can not contact the commanding officer in order to collect that loan from the military person who borrowed it. The creditors must have to agree the terms and the conditions of any loan repayment plan that would be negotiated by military credit counselor.

  8. Suzan verzekerman says:

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