Understanding the Homestead Exemption in Bankruptcy
If you are facing financial challenges, one of the main assets that you will likely want to keep at all costs is your home. When the time, money and heart that goes into a home is too much to just walk away from, you should carefully consider all your options.
Bankruptcy is often the best approach for homeowners who are facing foreclosure. A mountain of debt can become overwhelming. Taking the step to consult with a bankruptcy lawyer in Georgia will help you determine whether or not you are able to save your home, or at least some of the equity in the property.
The good news is, you may have the option of saving your home under what is known as the homestead exemption.
Homestead Exemption, Georgia
In the State of Georgia, an individual property owner is allowed a homestead exemption of up to $21,500. In the case a couple filing bankruptcy, the exemption limit increases to $43,000. The homestead exemption is based on how much equity you own in the property.
A couple who has $40,000 equity in a home worth $150,000 are within the exemption allowance and would have an additional $3,000 available for use in another exemption, known as the wildcard. In this hypothetical scenario, there is a good chance that you would get to retain ownership of your home.
Unfortunately, having more equity in a home may not work out the way that you would hope. For instance, doubling the amount of equity would require sale of the property in order to use the money left after the exemption limit to pay debtors. In the example scenario, that means you get to keep the $43,000 and the other $37,000 goes toward repaying debts.
Gingold & Gingold
At Gingold & Gingold, we are passionate about helping our Georgia clients find solutions to getting out of debt. We understand that a lot of individuals and families are struggling financially due to COVID-19 and other unforeseen issues.
Call our offices today if you are worried about losing your home and would like to explore the merits of filing for Bankruptcy in Georgia.
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1718 Peachtree St NW, #385
Atlanta, GA 30309
Phone: (678) 915-2634