Bankruptcy in Georgia (2026): Exemptions & Means Test

Filing for bankruptcy in Georgia is governed by federal law, but the property you can protect and the income test that applies to you are shaped by Georgia's own rules. Georgia has opted out of the federal bankruptcy exemptions, so residents must use the state exemption list in O.C.G.A. 44-13-100. This page explains Georgia's exemptions, the Chapter 7 means test, and where cases are filed, as general legal information rather than legal advice.

Does Georgia use state or federal bankruptcy exemptions?

Federal law lets each state decide whether its residents may choose the federal exemption list in 11 U.S.C. 522(d) or must use the state's own exemptions. Georgia is an opt-out state. The opt-out is in O.C.G.A. 44-13-100(b), which invokes 11 U.S.C. 522(b)(1) to bar a debtor domiciled in Georgia from applying the federal 522(d) list and limits that debtor to the exemptions available under 11 U.S.C. 522(b)(2). The state list itself is in 44-13-100(a), which applies in lieu of the general exemption from levy and sale in O.C.G.A. 44-13-1; that older section is a creditor-process exemption, not a bankruptcy provision. If you recently moved to Georgia, the federal domicile rules in 11 U.S.C. 522(b)(3) may require you to use another state's exemptions for a period, so the applicable list depends on your residency history.

Georgia homestead exemption

The homestead exemption protects equity in the home you or a dependent uses as a residence. For cases filed on or after July 1, 2026, O.C.G.A. 44-13-100(a)(1) as amended by House Bill 1024 protects up to $50,000 of equity, and qualifying married homeowners may protect up to $100,000. Cases filed before July 1, 2026 used the prior $21,500/$43,000 limits.

Georgia enacted House Bill 1024, which amends O.C.G.A. 44-13-100 to raise the homestead exemption to $50,000 effective July 1, 2026. For a residence titled in the name of one of two spouses who is a debtor, the exemption is $100,000. Beginning July 1, 2031, the amount is adjusted annually for inflation. Because the figure is changing in 2026 and will index thereafter, confirm the current amount for your filing date.

Motor-vehicle, wildcard, and personal-property exemptions

Georgia's other key exemptions under O.C.G.A. 44-13-100 include:

• Motor vehicle: up to $5,000 of equity in one or more motor vehicles.
• Wildcard: $1,200 of any property, plus up to $10,000 of any homestead exemption you do not use on a home. This lets renters and homeowners with little home equity protect cash, a vehicle, or other assets.
• Household goods and clothing: up to $5,000 total, with a $300 per-item limit on furniture, appliances, books, animals, crops, clothing, and similar items.
• Jewelry: up to $500.
• Tools of the trade: up to $1,500 in implements, books, and tools used in your work.
• Retirement, benefits, and insurance: most retirement and pension funds, Social Security and other public benefits, unemployment and veterans' benefits, and certain interests in life insurance.

Wage garnishment sits outside this list. O.C.G.A. 44-13-100 contains no exemption for current earnings, so the limit on garnishing wages comes from O.C.G.A. 18-4-5 and the federal cap in 15 U.S.C. 1673 instead.

These amounts are set by statute and are subject to amendment, so verify current figures before relying on them.

The Chapter 7 means test in Georgia

The means test determines whether your income is low enough to file Chapter 7 without a presumption of abuse. The first step compares your household's current monthly income, annualized, to the median family income for a Georgia household of your size, as published by the U.S. Trustee Program (justice.gov/ust). If you are at or below the median, you generally pass the first step. If you are above it, a more detailed calculation of allowed expenses and disposable income applies.

For cases filed on or after April 1, 2026, the U.S. Trustee Program lists Georgia's median family income as:

• 1 earner: $68,478
• 2 people: $84,965
• 3 people: $101,479
• 4 people: $123,481
• Add $11,100 for each individual in excess of four.

The U.S. Trustee Program updates these figures periodically, typically about twice a year, so check the current table for your filing date.

Chapter 7 vs. Chapter 13

Chapter 7 is a liquidation: a trustee may sell non-exempt property to pay creditors, and most remaining unsecured debts are discharged, often within a few months. Because Georgia's exemptions protect a defined amount of property, many filers keep everything they own. Chapter 7 suits people with limited income and mostly unsecured debt such as credit cards and medical bills.

Chapter 13 is a reorganization for people with regular income who want to catch up on a mortgage or car loan, or whose means-test calculation raises a presumption of abuse in Chapter 7. You repay some or all of what you owe through a court-approved plan lasting three to five years, then receive a discharge of remaining eligible balances.

In both chapters, filing triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection efforts, including foreclosure sales, repossessions, lawsuits, and wage garnishment, while the case proceeds. If a foreclosure sale or garnishment is already underway, ask a Georgia lawyer for a free bankruptcy evaluation on Chapter 7 versus Chapter 13 for your home and income (attorney advertising).

Where you file in Georgia

Georgia is served by three federal bankruptcy districts. You file in the district that covers the county where you have lived for the greater part of the last 180 days:

• U.S. Bankruptcy Court for the Northern District of Georgia (Atlanta, Gainesville, Newnan, Rome).
• U.S. Bankruptcy Court for the Middle District of Georgia (Macon, Columbus, Albany, Athens, Valdosta).
• U.S. Bankruptcy Court for the Southern District of Georgia (Savannah, Augusta, Brunswick, and other southeast Georgia locations).

What bankruptcy can and cannot do

Most unsecured debts, such as credit cards, medical bills, and personal loans, are dischargeable. Some obligations generally are not, including most student loans, recent income taxes, child support and alimony, and debts from fraud. Before filing, the law requires credit counseling from an approved agency, and a debtor-education course is required before discharge. Bankruptcy has long-term effects on credit and is not the right choice for everyone, so consider consulting a licensed Georgia bankruptcy attorney about your specific situation.

Frequently Asked Questions

Does Georgia use state or federal bankruptcy exemptions?

Georgia has opted out of the federal exemptions. Residents must use Georgia's state exemptions under O.C.G.A. 44-13-100 and cannot choose the federal list in 11 U.S.C. 522(d), subject to the federal domicile rules for people who recently moved to the state.

What is the homestead exemption in Georgia?

For cases filed on or after July 1, 2026, it is $50,000 of home equity (up to $100,000 for qualifying married homeowners) under House Bill 1024, indexed for inflation annually starting July 1, 2031. Cases filed before that date used the prior $21,500/$43,000 limits. Confirm the current amount for your filing date.

What is the Georgia median income for the means test?

For cases filed on or after April 1, 2026, the U.S. Trustee Program lists Georgia's median family income as $68,478 for 1 person, $84,965 for 2, $101,479 for 3, and $123,481 for 4, adding $11,100 per additional person. These figures update periodically.

Will I lose my house or car in a Georgia bankruptcy?

Often no. Georgia's homestead exemption protects home equity up to the statutory amount, and the $5,000 motor-vehicle exemption protects car equity. If your equity is within these limits and you stay current on secured payments, you can typically keep the property. Equity above the exemption may be at risk in Chapter 7 but can often be addressed in Chapter 13.

How much can the Georgia wildcard exemption protect?

The wildcard protects $1,200 of any property plus up to $10,000 of any homestead exemption you do not use on a home, so filers with little or no home equity can protect a substantial amount of other assets.

Which bankruptcy court handles my Georgia case?

You file in the Northern, Middle, or Southern District of Georgia, depending on the county where you have lived for most of the past 180 days.

What is the automatic stay?

The automatic stay under 11 U.S.C. 362 takes effect when you file and immediately stops most collection actions, including foreclosure, repossession, lawsuits, and wage garnishment, while your case is pending.

Can bankruptcy erase all of my debts?

No. Most unsecured debts are dischargeable, but obligations such as most student loans, recent taxes, child support, alimony, and debts from fraud generally are not.