Your Home Just Got Far Better Protected Under Georgia Bankruptcy Law

A new state law dramatically raises how much home equity Georgians can shield when filing bankruptcy. If you've been told bankruptcy wasn't an option — it's time for a second look.

For years, a number called the homestead exemption has quietly blocked many Georgia homeowners from getting the debt relief they deserved. That number — set far below what homes actually cost today — put Chapter 7 bankruptcy out of reach for people who qualified in every other way.

That changed when Governor Brian Kemp signed House Bill 1024 into law. Starting July 1, 2026, the homestead exemption jumps from $21,500 to $50,000 per person. Married couples filing together can protect up to $100,000. If you own a home in Georgia and are carrying debt you can't get ahead of, this may be the most important legal change affecting your options in years.

"A lot of people have been sitting with real financial hardship, unable to act, because a number on paper didn't match the reality of today's housing market. This law removes that barrier for a lot of Georgia families." — Cha'Ron Ballard, Esq., Wealth Wellness Attorney & Founder, The Ballard Law Group

What the Homestead Exemption Actually Does

When you file Chapter 7 bankruptcy, a court-appointed trustee reviews your assets. For most Georgia homeowners, the significant asset is the equity in their house — what's left when you subtract your mortgage balance from your home's value.

The homestead exemption is the portion of that equity the law lets you keep. Equity within the limit is protected. Equity above it could, in theory, be pursued by the trustee to pay creditors. Stay within the limit, keep making your mortgage payments, and you come out of Chapter 7 with your home and without the debts that were burying you.

Georgia sets its own exemption amounts — residents here can't use the federal system — and Georgia's old number hadn't kept pace with what homes actually cost. HB 1024 finally corrects that.

Running the Numbers: Before and After

Imagine your home is worth $320,000 and you owe $262,000 on your mortgage. Your equity is $58,000. Here's how that plays out under the old law versus the new:

Note: A married couple with $90,000 in equity may protect it entirely under the new $100,000 joint exemption. Every case is different — a full attorney review is the right first step.

Is This Law Relevant to You?

This change may significantly expand your options if any of the following sounds familiar:

• You spoke with a bankruptcy attorney before and were told your home equity was too high for Chapter 7
• Your home's value has increased substantially since you purchased it
• You're carrying credit card debt, medical bills, or personal loans you can't get ahead of
• A creditor has filed a lawsuit against you or you're dealing with a wage garnishment
• You've been putting off bankruptcy because you were worried about losing your home
• You received bankruptcy advice more than a year ago that may not reflect current law

Chapter 7 vs. Chapter 13 — What Changes?

Chapter 7 — Clean Slate, Fast

Chapter 7 eliminates most unsecured debts — credit cards, medical bills, personal loans — through a process that typically wraps up in three to six months. No repayment plan, no multi-year commitment. For most clients, it's the fastest path to a genuine fresh start. The challenge has always been home equity. If your equity exceeded the exemption, a Chapter 7 trustee could potentially use it to pay creditors. HB 1024 brings many more Georgia homeowners back into Chapter 7 territory — people who were pushed out simply by rising home values.

Chapter 13 — Structure and Catch-Up

Chapter 13 is a three-to-five-year repayment plan that reorganizes what you owe while protecting your assets. It's especially powerful for stopping a foreclosure, catching up on mortgage arrears, or for people who don't qualify for Chapter 7 based on income. Chapter 13 remains a strong option regardless of HB 1024 — the new law simply means more people may now have Chapter 7 as a viable alternative. We'll walk you through which path fits your situation.

Built-In Protection Going Forward

HB 1024 doesn't just set a new dollar amount — it includes a mechanism for the exemption to adjust automatically over time as economic conditions change. The old number sat frozen for years while Georgia home values climbed steadily past it. Going forward, the law is designed to stay relevant rather than fall behind again.

Does the Date You File Matter?

Yes — the new exemption applies to cases filed on or after July 1, 2026. If you file before that date, the old $21,500 limit applies. Whether it makes sense to wait depends entirely on your specific situation.

If you're facing an active garnishment, a lawsuit with a judgment, or a foreclosure in motion, waiting may cost you more than the exemption increase gains you. If your situation is stable and the equity numbers are close, timing may be worth discussing. The only way to know is to sit down and go through your actual numbers with an attorney.

Frequently Asked Questions

What exactly changed with HB 1024?

Georgia's homestead exemption — the amount of primary home equity you can protect in bankruptcy — increased from $21,500 to $50,000 per person, effective July 1, 2026. Married couples who file together can protect up to $100,000.

Does this mean I'll automatically keep my house in bankruptcy?

Not automatically. The exemption increase removes a major barrier for many homeowners, but Chapter 7 eligibility also depends on your income and the bankruptcy means test. A free consultation with our office gives you the full picture.

I was told before I had too much equity for Chapter 7. Should I try again?

Absolutely worth revisiting. Depending on your equity amount, the new $50,000 exemption may change your eligibility entirely. We encourage you to schedule a free consultation for an updated review under the new law.

My home is worth less than I owe. Does HB 1024 affect me?

If you have little or no equity, the exemption increase has minimal impact on home protection — you're already in a position where the trustee has no equity to pursue. The analysis shifts to your income, debt type, and which chapter best fits your situation.

Should I wait until after July 1 to file?

It depends on your specific circumstances. For some, waiting makes real financial sense. For others facing urgent collection action, foreclosure, or garnishment, the cost of waiting may outweigh the benefit. We help you make that call based on your actual numbers — not a guess.

What happens at a free consultation with The Ballard Law Group?

You'll speak directly with Attorney Cha'Ron Ballard. We'll review your income, debts, home equity, and financial picture and give you a clear, honest assessment of your options — including how HB 1024 specifically applies to your case. No pressure, no jargon, no judgment.

This page is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. The impact of HB 1024 on your situation depends on your income, assets, debts, and other individual circumstances. Please consult a qualified bankruptcy attorney before making any legal decisions. The Ballard Law Group is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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