If you are a Georgia resident who is currently researching bankruptcy, you may be worried about losing some of your most prized possessions. Thankfully, there are some exemptions in a Georgia bankruptcy which may allow you to keep some of these items that you are hesitant to part with. Georgia allows you to choose between two different sets of exemptions depending on whether you file for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
The first bankruptcy exemption system that you can use allows homestead exemption. This will protect a certain amount of equity in your principal residence. This exemption does not extend to summer homes, cabins, rental properties, or any other real estate that is not considered your primary residence. If you live in the property, then you can exempt it. This means that if you are currently living in a boat or a mobile home then this item would be exempt but if you are not then the item will probably be subject to liquidation in a Chapter 7 bankruptcy.
If you are single and not disabled then you can receive up to $75,000 of exempt equity in your property and you can receive up to $100,000 of the equity if you are part of a family and at least one family member has no interest in the homestead. If you are 65 or older or are physically or mentally disabled then you can have an $185,000 exemption. Also, if you are 55 or older and single and earn under $25,000 and creditors are also seeking the force sale of your home, you can have a $175,000 exemption. In addition, if you are 55 or older, creditors are already seeking the forced sale of your home, and you are earning under $35,000 per year you can have this highest exemption amount.
Under the first bankruptcy system that is provided in Georgia, you can also gain a $2,725 exemption on your motor vehicle and will have an exemption for all jewelry, heirlooms and works of art up to $7,175. Ass well, you can keep health aids and personal injury and wrongful death recoveries. You can also keep your cemetery and burial pots, residential building materials up to $2,875 and household items and personal effects.
Bankruptcy filers using this system in Georgia will be able to recover 75% of their income within 45 days prior to filing bankruptcy and will be allowed to keep any public employee vacation credits. There are also some retirement and pension exemptions and public benefits that you will want to look into to make sure that you are getting the exemptions that you are legally entitled to under system one. You can also keep disability and health insurance, fidelity bonds, and business or professional licenses.
Under system 2 in Georgia you can have a $24,969 exemption on all real property and will be able to exempt up to $4,800 on a motor vehicle. Under this system, there are also provisions for health aids, jewelry and heirlooms up to $1,425, clothing, household goods, appliances, animals, and other personal effects up to $600 per item, and a burial plot of up to $24,060.
In addition to this, those who use system two are permitted to keep all alimony and child support benefits, tools of trade up to $7,175, retirement pensions and IRAs up to $1,1717,150 and pensions, annuities and benefits that are necessary for support. In addition, System two allows a person to have a filer to keep all unmatured life insurance policies, accrued interest dividends, loans, cash or surrender values and disability benefits. If you want more information about both of these highly details systems, then you need to talk to an attorney at Blevins & Hong, P.C. today. The Marietta bankruptcy attorneys at this firm can help you to better understand the aspects of a Georgia bankruptcy and determine which system is best for you based on the exemptions that are allowed.