If you are contemplating filing for Bankruptcy and own a home, you probably will want to consider waiting a few weeks. Georgia Governor Brian Kemp has signed House Bill HB 1024, which increases the Georgia Homestead Exemption from the current $21,500.00 to $50,000.00 effective July 1, 2026. If the residence is titled in the name of one of two spouses who is a debtor, the exemption is doubled to $100,000.00. Further, starting on July 1, 2031, the exemption amount is revised annually based on the inflation rate of the prior year.
The amendments to O.C.G.A. §44-13-100 are:
“(1)(A) The debtor’s aggregate interest, not to exceed
$21,500.00$50,000.00 in value,
in real property or personal property that the debtor or a dependent of the debtor uses
as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor; provided, however, that beginning July 1, 2031, and annually thereafter, such exemption shall be revised by being multiplied by the inflation rate of the prior year. In the event title to property used for the exemption provided under this paragraph is in one of two spouses who is a debtor, and such property is the primary residence of both spouses, the amount of the exemption hereunder shall be$43,000.00$100,000.00; provided, however, that, beginning July 1, 2031, and annually thereafter, such exemption shall be revised by being multiplied by the inflation rate of the prior year;
(B) As used in this paragraph, the term ‘inflation rate’ means the annual inflationary index rate as determined for a given year by the state revenue commissioner by promulgating a standardized method for determining annual inflationary index rates which reflect the effects of inflation and deflation on the cost of living for residents of this state for a given calendar year. Such method may utilize the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department of Labor or any other similar index established by the federal government if the state revenue commissioner determines that such federal index fairly reflects the effects of inflation and deflation on the cost of living for residents of this state.”
The Bill was cosponsored by Representative Soo Hong along with Rep. Matt Reeves, Rep. Rob Leverett and Sen. Marty Harbin.
Scott Riddle’s practice focuses on bankruptcy and reorganization. Scott has represented businesses and other parties in Bankruptcy cases for over 20 years. You can contact Scott at 404-815-0164 or scott@scottriddlelaw.com. For more information, click here.