Read this article about protected assets under Chapter 7 Bankruptcy in Georgia. Then contact Hall & Navarro for a consultation.
What assets can be protected under chapter 7 bankruptcy?
One of the primary questions that our clients ask us is “what are the protected assets under Chapter 7 bankruptcy in Georgia.” There is a term called exempt property. It’s a term that attorneys use that most people would never use in their ordinary language. Exempt assets are basically assets that the state of Georgia has determined that, no matter what happens, you can protect these assets from your creditors.
Georgia has established a particular bankruptcy statute that lines out those assets. For instance, you can protect from $1,500 of equity in your house. You can protect up to $5,000 of equity in an automobile, $2,000 equity if you cash your regular life insurance policy, $1,200 in tools of the trade, $1,200 in other assets that you might have. There’s a smattering of other type of protections.
One of the big protections is retirement plans. You can always protect unlimited amounts of monies in retirement plans that are tax-exempt. For instance, 401(k), your employee provided retirement plan. IRAs and other types of retirement plans are always fully protected.
What You Need in Order to File for Chapter 7 Bankruptcy
When filing any bankruptcy, your income is going to be a factor. There are specific guidelines for income and expenses allowed for individuals filing a Chapter 7 bankruptcy. If you make under a certain amount, you automatically qualify for Chapter 7. If you are above a certain threshold as governed by Georgia’s allowances, you will have to complete a “Means Test” to determine your eligibility. The idea is that the court is trying to determine how much you have left over after you paid your monthly expenses. It may turn out that you are not eligible for bankruptcy because of your debt-to-income ratio. One of our Georgia Chapter 7 bankruptcy lawyers can help you with this.
Are you or a loved one in the process of filing for bankruptcy in Statesboro, Springfield, or Swainsboro and have questions about protected assets under chapter 7 bankruptcy in Georgia? Contact the experienced Georgia bankruptcy attorneys at Hall & Navarro today for a consultation and case evaluation.
We can help get your life back on track.