Georgia Bankruptcy Exemptions and Law

Bankruptcy is a tool to protect many of your assets from creditors. With this process, you can protect your home, car, and retirement accounts. Understanding which exemptions apply to your situation helps you get financial relief.

If you have questions about bankruptcy exemptions under federal laws and Georgia state law, contact a Georgia bankruptcy attorney near you. They can help you understand which protections apply to your situation and the steps you have to take before you file.

Georgia Bankruptcy Law

The U.S. Bankruptcy Courts are federal courts governed by the U.S. Bankruptcy Code. Federal law allows states to set their own rules on which property their residents can protect from creditors. Georgia has chosen to implement its own rules on exempt property, which is what you can keep. While some states let you choose between the federal exemptions provided in the Bankruptcy Code and their state law exemptions, Georgia requires you to use the state exemptions.

To better understand the role exemptions play in the bankruptcy process, it helps to familiarize yourself with the two types of personal bankruptcy:

• Chapter 7 bankruptcy is sometimes known as “liquidation” bankruptcy. It requires turning over the property you can’t protect with an exemption to a bankruptcy trustee, who sells the property and uses the proceeds to pay your creditors. Exemptions can play a significant role in cases under Chapter 7. In return for giving up your nonexempt property, you will usually exit bankruptcy free from nearly all of your debt. Chapter 7 comes with strict income thresholds to qualify.
• Chapter 13 bankruptcy lets people who have a steady income reorganize most of their debt and pay it off in three to five years. The payments are made under a court-approved plan that may eliminate some of your debt. Chapter 13 is popular with homeowners because they can often keep their homes.

The court issues an automatic stay when you file. This stops almost all creditor collection activity, including foreclosures and court cases, and prevents collection agencies from continuing to harass you.

Secured vs. Unsecured Debt

When you declare bankruptcy, your debts are usually categorized as secured or unsecured. The designation is significant because the two types of debt are treated differently in Chapter 7 and Chapter 13, which will dictate how much debt you can eliminate.

Unsecured Debt

Debt is considered to be unsecured when a creditor has no right to repossess your property for failure to pay. Credit card debt, court judgments, and medical debt are among the most common types of unsecured debt.

Since your unsecured creditors hold no collateral for their debts, unsecured debt is the most likely to be eliminated through bankruptcy. Some priority unsecured debts, like child and spousal support, can’t be discharged without an order from a family court.

Secured Debt

A secured creditor has the right to repossess your property if you don’t repay what you owe. Secured debt is often the result of a contract. If you sign a car purchase or lease agreement, the lender retains a security interest in the vehicle and can repossess it if you fall behind on payments.

Because secured creditors retain their right to repossess the property in bankruptcy, you’ll usually need to give up the property or work out a payment plan with the creditor. Home mortgages and car loans are the most common types of secured debt.

How Secured and Unsecured Debt Work in Bankruptcy

When you file for Chapter 7 bankruptcy, you can usually discharge most of your unsecured debt. It’s not as easy to discharge secured debt, which is rarely eliminated in a Chapter 7 case. In most instances, you’ll need to choose from one of the following options:

• Return the property to the creditor: You’ll lose the property, but won’t be required to make additional payments
• Keep the property and continue making payments: Sometimes possible when a state exemption covers the equity you have in the item
• Purchase the property outright: Rare in Chapter 7 cases, as most people who file under this chapter lack the assets to purchase the property

Chapter 13 bankruptcy lets you create a plan to repay your secured creditors over three to five years. The court must approve your plan and may force creditors to reduce or restructure your debt. If you want to keep your home, you’ll need to continue making mortgage payments outside of the plan. The trustee may negotiate a payment agreement with the lender if you’re behind.

In Chapter 13, unsecured creditors are paid with the disposable income that’s left over after you’ve repaid your secured creditors. Any unsecured debt not paid under the plan is discharged at the end of the plan.

Am I Eligible for Bankruptcy in Georgia?

To file under Chapter 7 in Georgia, you must show that your income is low enough to qualify. This is usually done using one of two “means tests.”

The first means test is simple: If your household income is less than the median household income for similarly sized households in your state, you qualify. The U.S. Trustee Program updates these median income figures periodically.

For cases filed beginning in 2025, the Georgia medians are approximately:

• $62,401 for a one-person household
• $81,309 for a two-person household
• $98,564 for a three-person household
• $114,618 for a four-person household
• An additional $11,100 per person beyond four

If you live in a three-person household earning less than about $98,564 a year, you’ll likely pass the first stage of the Chapter 7 means test in Georgia. You can still qualify under Chapter 7 based on your disposable income if you are above the median. Calculate your disposable income by subtracting your monthly expenses from your monthly income. If the calculation shows that you have little disposable income each month, you can file under Chapter 7.

To file under Chapter 13, you’ll need to show that you have a steady income and that your debts fall within the limits. Every three years, the Judicial Conference adjusts these figures to reflect inflation. For cases filed between April 1, 2025, and March 31, 2028, your noncontingent, liquidated unsecured debts can’t be more than $526,700. Secured debts can’t exceed $1,580,125.

Georgia Bankruptcy Exemptions

Anyone filing for bankruptcy in the state can use Georgia’s exemption system. If your property falls within one of the exemptions, you can protect it from creditors and use it to start over after completing your bankruptcy case.

When a married couple files for bankruptcy together in Georgia, each spouse is usually allowed to claim a complete set of exemptions. Filing for joint bankruptcy with your spouse may allow you to double most state exemptions if you own the property together.

Georgia Residency Requirements for Using State Exemptions

There are required qualifications to access Georgia’s exemptions. Under 11 U.S.C. § 522(b)(3)(A), you must have lived in the state for the whole 730-day period (two years) immediately before you file the bankruptcy petition. If you are a new resident of Georgia, you’ll use the exemptions of the state where you lived within the 180-day period before the 730-day period.

There is a separate federal rule that limits the homestead exemption. If you acquired your home interest within 1,215 days (around 40 months) before filing, your homestead protection is capped at $214,000. This cap applies to cases filed between April 1, 2025, and March 31, 2028, and is adjusted every three years. The cap doesn’t apply if you rolled the proceeds from selling a previous Georgia home into the current one.

Homestead Exemption

As of July 1, 2026, Georgia allows you to exempt up to $50,000 of the equity you have in the residence you use as a home when you file for bankruptcy. That doubles to $100,000 if you and your spouse both own the home and file for bankruptcy together. For more information on exemptions, FindLaw’s Georgia Homestead Laws article has you covered.

Wage Exemption

You are allowed to keep 75% of your weekly disposable earnings. This is also equivalent to 30 times the hourly minimum wage at the state or federal levels, whichever is higher. A bankruptcy judge may allow some low-income filers to keep more of their earnings.

Motor Vehicle Exemption

You can exempt up to $5,000 of the equity you have in one or more motor vehicles.

Wildcard Exemption

Georgia has a wildcard exemption that you can use to protect any property you own up to $1,200 in value. If you don’t take full advantage of the state’s homestead exemption, you may use up to $10,000 of the unused homestead exemption amount to protect other property.

Personal Property Exemptions

The following household items are exempt up to a combined total of $5,000, not to exceed $300 per item:

• Furnishings
• Household goods
• Clothes
• Appliances
• Books
• Animals
• Musical instruments
• Crops

The state will also allow you to keep up to $500 in jewelry.

Tools of the Trade Exemption

You can exempt up to $1,500 of the implements, books, or tools you need to pursue your trade or occupation.

Insurance Benefits Exemption

Payments under life insurance contracts that insured an individual upon whom you depended for support are exempt to the extent they are reasonably necessary to support you and any dependents.

Pension and Retirement Exemption

Most pension and retirement plans are exempt in Georgia, including:

• Tax-exempt retirement accounts such as 401(k)s, IRAs, and defined benefit plans
• Public officer or employee plans
• Reasonably necessary payments made on account of illness, disability, death, age, or length of service under a pension or annuity plan

Public Benefit Exemptions

The following public benefits are exempt in full:

• Social Security benefits
• Unemployment benefits
• Disability benefits
• Veterans’ benefits
• Local public assistance benefits

Other Exemptions

• Alimony and child support to the extent reasonably necessary for support
• Money from a health savings account or medical savings account
• Professionally prescribed health aids
• Payments for the wrongful death of an individual upon whom you were dependent to the extent they are reasonably necessary for your support
• Up to $10,000 of payments for personal bodily injury, not including payments for pain, suffering, or financial loss
• Payments as compensation for the loss of future earnings that are reasonably necessary for your support

If you’re uncertain about an exemption, speak with a Georgia bankruptcy attorney.

How Do I Start Bankruptcy in Georgia?

Regardless of which state you file in, you must first complete a credit counseling course within 180 days of filing. The course is designed to help you assess whether you can pay your debts outside of bankruptcy.

If you plan to file under Chapter 13, you may be asked to prepare a repayment plan to file with the court as part of the course. You must file a course completion certificate along with your bankruptcy filing.

Most people start bankruptcy by finding a qualified bankruptcy attorney. If filing without a lawyer, you begin the process by finding and downloading the correct forms for the bankruptcy court in your district. Search under “U.S. Bankruptcy Courts” in the Federal Court Finder to find the one for your region. The instructions for the filing forms will let you know which additional forms and documents must accompany your petition.

Where Do I File for Bankruptcy in Georgia?

There are three federal courts in Georgia, each with its own bankruptcy courts. Some districts have more dedicated courts than others.

The Northern District of Georgia has bankruptcy courts in:

• Atlanta
• Gainesville
• Newnan
• Rome

The Middle District of Georgia has bankruptcy courts in:

• Macon
• Columbus

The Southern District of Georgia has bankruptcy courts in:

• Augusta
• Brunswick
• Dublin
• Savannah
• Waycross
• Statesboro

Make sure you file in the correct courthouse.

How Much Does Bankruptcy Cost in Georgia?

It will cost you $338 to file for Chapter 7 bankruptcy in Georgia or $313 to file under Chapter 13. The fees are the same whether you represent yourself or hire an attorney. If you can’t afford the filing fee, you can ask to pay in installments over 120 days. It’s also possible to have the fee waived if you earn less than 150% of the poverty line.

Most people who file for bankruptcy choose to be represented by a lawyer. While each bankruptcy case is unique and the fees can vary depending on where you live in the state, most Georgia bankruptcy lawyers will charge between $650 and $1,500 for a fairly straightforward Chapter 7 case. Since Chapter 13 cases are usually more complex, expect to pay more.

Need Help Filing for Bankruptcy in Georgia?

Dealing with an overwhelming debt is stressful enough without having to navigate the bankruptcy process. An experienced local bankruptcy attorney will help guide you through the filing process, represent you in court, and negotiate with your creditors to ensure that you retain as many of your assets as the law allows. Contact a bankruptcy lawyer near you to find out the options available to you.