Will I Lose My Stuff if I File for Bankruptcy?

   In most cases you will not lose your property when you file for bankruptcy.  For the majority of cases filed in Georgia, the Georgia “exemption law” determines what you can protect if you file bankruptcy.  For example most personal items - pots, pans, television, stereo, clothes, furniture - are completely protected.

   You may be confused as to why Georgia law would control what you can shelter in bankruptcy.  After all, bankruptcy is a federal proceeding that takes place in federal court.  The Bankruptcy Code allows the States to “opt out” of the federal rules regarding exempt property.  Georgia is one of the States that has its own exemption rules - you can look at the Georgia exemption statute by clicking on the link.

   Although the Georgia exemption statute does allow you to shelter most of your property, the protection is not unlimited.  Under the current Georgia exemption law, you can shelter up to $3,500 of equity in a car and up to $10,000 equity in a house.  If you do not have a house, you can use $5,000 of your $10,000 house exemption for your car or any other property.  For married couples, you can double your exemption. Thus, a married couple can exempt $20,000 of equity in their house and $7,000 of equity in their motor vehicles.

   Click on the link to learn more about the Georgia bankruptcy exemption statute and how it is applied in bankruptcy cases file the Northern District of Georgia

How to Know if My Property is Protected?

   In order to know whether your property falls within the Georgia exemption statute, you first need to know what that property is worth.  You can save a lot of time and effort by gathering information for us about the value of your property.  Here are some suggestions

• real estate - ask a local real estate agent to give you an informal “drive by” appraisal and  printout of comparable home sales in the neighborhood.  If your house needs a new roof, new carpet, air conditioning or other repairs, have a vendor or home repair contractor give you a written estimate so that needed repairs and updates can be factored in to the informal appraisal.  For additional information about how to determine what your house is worth click to read an informative blog post from a local consumer bankruptcy blog
   
• cars and trucks - we recommend that you take your motor vehicle to a local Car Max for a written purchase offer.  CarMax does not charge for this service and a written purchase offer from a bona fide buyer is solid evidence.
   
• electronics and household goods - make a list of your household goods and go to eBay or another on-line auction company to look for equivalent items.
   
• jewelry - take your jewelry to a jeweler or pawn ship that buys used bracelets, watches and rings and ask for a written purchase offer