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Georgia Bankruptcy Laws
Georgia is unusual in that a greater percentage (60%) file for Chapter 13 bankruptcy. However, those filing Chapter 7 can often protect much their property through state exemptions (federal exemptions are not allowed by Georgia law), such as:
Homestead |
Up to $10,000 (can be doubled if married) |
Personal Property |
Motor vehicles up to $3,500; clothing, household goods; furnishings; and crops up to $300 per item and $5,000 total; various financial recoveries if required for support |
Wages |
For private and federal workers, either 40 times the federal or state minimum hourly wage or a minimum 75% of wages earned but not paid, whichever is greater |
Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; ERISA IRAs and qualified benefits; non-profit corporation employees; public employees |
Public Benefits |
Worker’s comp; unemployment; veterans’ benefits; Social Security; crime victims’ compensation; local public assistance; old age assistance; aid to blind; aid to disabled |
Tools of the Trade |
Up to $1,500 of tools, books, and implements of trade |
Insurance |
Fraternal benefits; life insurance proceeds and annuity and endowment contract benefits of various types, especially if required for support |
Once the options are determined, the debtor and their lawyer prepare appropriately, and the client completes credit counseling, filing a petition for bankruptcy is easily handled by the bankruptcy lawyer. The bankruptcy trustee is in charge of much of the remainder of the proceedings, although a lawyer can help the consumer answer any questions that arise in the required 431 meeting with the bankruptcy trustee and the creditors. If all the requirements are fulfilled, the debtor is free to begin anew (for those filing Chapter 7), or begin paying off all debts (for those filing Chapter 13).
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