Whether it’s the global financial crisis, failure of a business, or any other reason that makes people file for bankruptcy, this process is never pleasant. Many citizens of Georgia are afraid of losing their personal property and valuable assets while filing for bankruptcy, while others believe that it will impact their reputation. Fortunately, bankruptcy in Georgia is far less scary than it seems, especially if you have an expert lawyer handling your case. Bankruptcy exemptions were created to ease the process of debt repayment for all citizens of Georgia. How do these exemptions work? Let’s find out!
How Can One Use Bankruptcy Exemptions in Georgia?
While there is multiple Georgia exemptions for bankruptcy, they all are available only when you are filing Chapter 7 or 13. The exemptions themselves regulate which assets you can keep, which will be sold to cover your debts, and how much you’ll pay to the creditors every month. It’s worth remembering that the conditions of filing for bankruptcy in Georgia depend largely on your income. If it’s higher than the state average, Chapter 7 bankruptcy may not be an option for you. Wages also determine the amounts of funds that bankrupt citizens must payout to their creditors. Mind that the law of Georgia allows married couples to file for bankruptcy together, with each spouse claiming full exemptions. This practice is sometimes referred to as doubling.
Major Types of Bankruptcy Exemptions in Georgia
The law of Georgia recognizes numerous types of exemptions; so, you’ll need to consult your attorney for a detailed examination of your particular case. The main bankruptcy exemptions are the following:
- Homestead. According to the law of Georgia, real estate equity worth up to $21,500 can be exempt. If you don’t use the whole value of this exemption, up to $5,000 can be used to secure any other assets.
- Personal property. It refers to vehicles (up to $3,500), jewellery, furniture, and other valuable items. Citizens of Georgia can also claim lost future earnings worth no more than $7,500 and personal injury awards (up to $10,000).
- Retirement. Your pension account worth up to $1,171,150 is protected by the law of Georgia.
- Child support. All alimony funds are considered bankruptcy exemptions.
- Insurance. Health, disability, and accident policies are also included in the exemptions list.
- Wildcard. This exemption protects any property of your choice worth up to $600. Citizens of Georgia can utilize wildcard alongside unused homestead exemptions.
Need Help with Your Bankruptcy Exemptions in Georgia?
If you need a trustworthy law firm in Georgia, there’s no better choice than Debtstoppers Georgia. The company offers a comprehensive set of legal services, from complimentary consultations to an in-depth investigation of your case. Don’t hesitate to contact Debtstoppers using a form on their website or the company’s phone number. With the firm’s expert bankruptcy attorneys, every person in Georgia can expect the highest level of service and personalized approach to their needs. DebtStoppers will help you file for bankruptcy in the most efficient way. The initial consultation is free of charge; so, make sure to reach out to the company and discuss your case!