One of the most common bankruptcy myths today is that bankruptcy takes all of the property of the person filing for bankruptcy. This one presumption causes many people to refrain from filing even though it is not true. You will not lose everything that you own if you file for bankruptcy in the state of Georgia. The property that you can keep varies depending on the type of bankruptcy that you file for. If you are filing for a Chapter 13 bankruptcy, you do not have to worry about losing your property. The only reason that any type of asset liquidation occurs to begin with is to repay creditors of your discharged debts. In a Chapter 13 bankruptcy, you are already repaying your creditors through a repayment plan so there is no need to liquidate your assets or property.
In a Chapter 7 bankruptcy, you may lose some assets to liquidation in order to repay your debts. There are exemption laws in Georgia; however, which prevents you from losing all that you own.
The exemptions can be found in the state code books O.C.G.A. 44-13-100 is the beginning, many of the exemptions found in the code include:
- $21,500 in your home
- $3,500 in one car
- $5,000 of your furniture, clothing, household items
- 100% of your workers’ compensation
- Disability, government benefits such as Social Security are fully exempt
- Retirement accounts are exempt
These are not all of the exemptions and it is important to note that this is for an individual case. If your bankruptcy is a joint case, most of these numbers are doubled. When you file for Chapter 7, you will be able to keep all of your exempt assets and also some non-exempt. For help negotiating with your bankruptcy trustee and creditors, contact a Marietta bankruptcy attorney from Blevins & Hong, P.C.