In Georgia, certain exemptions apply in bankruptcy cases. The exempted value achieved for the property reflects the equity value invested into the asset. A lower equity value provides the consumer with a higher exemption for the property. The exempted value is returned during chapter 7, and it is subtracted from the value of the outstanding balance for the debt in chapter 13. To acquire the exempted value, an attorney must start a claim for Bankruptcy in Lithonia GA.
What is the Homestead Exemption?
The homestead exemption applies to the primary home of the consumer. The exempted value applied to the primary residence is $21,500 for married couples. It expands up to $43,000 if only one spouse or individual owns the property. Any additional exemption that is left over is also applied to this asset as long as it doesn’t exceed $5,000.
What are Personal Property Exemptions?
Personal property is defined as clothing, books, household appliances and goods, and electronics. They also include jewelry, burial plots, lost wages provided through a settlement, and other legal rewards. The exempted value that applies to these items doesn’t exceed $200 for each item. The exempted value of these assets cannot range beyond $3,500.
What is the Exempted Value for Tools and Equipment?
Any tools, books, or equipment used for a business are included in this exemption category. The total value awarded as an exemption is $500. However, if the bankruptcy claim is for a business, the court may provide additional exemptions based on how critical the items are to operations.
What is a Wild Card Exemption?
A wild card exemption is an additional exemption that is used for any additional property. The consumer chooses which property the exemption is used for. However, the equity value must equate to a value that is less than the loan or mortgage balance for the property.
In Georgia, consumers acquire certain exemptions when filing a bankruptcy claim. These exemptions apply to all property and assets identified in the claim. They are applied to offset the total balance of the debt and help the consumer recover equity paid into these accounts. Consumers who have questions about Bankruptcy in Lithonia GA visit websitefor clear answers today.
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