SB87: SB87 Levy and Sale of Property; exemption of the full value of a debtor's primary residence from levy and sale; provide

25 LC 49 2127 Senate Bill 87 By: Senators Setzler of the 37th, Kirkpatrick of the 32nd, Robertson of the 29th, Gooch of the 51st, Summers of the 13th and others A BILL TO BE ENTITLED AN ACT To amend Chapter 13 of Title 44 of the Official Code of Georgia Annotated, relating to1 exemptions from levy and sale of property, so as to provide for the exemption of the full2 value of a debtor's primary residence from levy and sale by virtue of any process whatever3 under the laws of this state; to provide for the exemption, for purposes of bankruptcy, of the4 full value of a debtor's aggregate interest in his or her prima ry residence; to provide for5 related matters; to provide an effective date; to repeal confli cting laws; and for other6 purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Chapter 13 of Title 44 of the Official Code of Georgia Annotate d, relating to exemptions10 from levy and sale of property, is amended by revising Code Sec tion 44-13-1, relating to11 amount of exemption, who may claim exemption, and what charges enforceable, as follows:12 "44-13-1.13 Except as otherwise provided in this article, there shall be ex empt from levy and sale by14 virtue of any process whatever under the laws of this state any real or personal property or15 both of a debtor in the amount of $5,000.00 or $21,500.00 for the full value of real or16 S. B. 87 - 1 - 25 LC 49 2127 personal property that is the debtor's primary residence. No court or ministerial officer in17 this state shall ever have jurisdiction or authority to enforce any judgment, execution, or18 decree against property set apart under this Code section, including such improvements as19 may be made thereon from time to time, except for taxes, for th e purchase money of the20 property, for labor done on the property, for material furnished for the property, or for the21 removal of encumbrances on the property."22 SECTION 2.23 Said chapter is further amended in Code Section 44-13-100, rela ting to exemptions for24 purposes of bankruptcy and intestate insolvent estates, by adding a new subsection to read25 as follows:26 "44-13-100.27 (a) In lieu of the exemption provided in Code Section 44-13-1, any debtor who is a natural28 person may exempt, pursuant to this article, for purposes of ba nkruptcy, the following29 property:30 (1) The debtor's aggregate interest, not to exceed $21,500.00 in value, in real property31 or personal property that the debtor or a dependent of the debtor uses as a residence, in32 a cooperative that owns property that the debtor or a dependent of the debtor uses as a33 residence, or in a burial plot for the debtor or a dependent of the debtor. In the event title34 to property used for the exemption provided under this paragraph is in one of two spouses35 who is a debtor, the amount of the exemption hereunder shall be $43,000.00;36 (2) The debtor's right to receive:37 (A) A social security benefit, unemployment compensation, or a local public assistance38 benefit;39 (B) A veteran's benefit;40 (C) A disability, illness, or unemployment benefit;41 S. B. 87 - 2 - 25 LC 49 2127 (D) Alimony, support, or separate maintenance, to the extent reasonably necessary for42 the support of the debtor and any dependent of the debtor;43 (E) A payment under a pension, annuity, or similar plan or con tract on account of44 illness, disability, death, age, or length of service, to the extent reasonably necessary for45 the support of the debtor and any dependent of the debtor;46 (F) A payment from an individual retirement account within the meaning of Title 2647 U.S.C. Section 408 to the extent reasonably necessary for the support of the debtor and48 any dependent of the debtor; and49 (G) Moneys paid into or out of, the assets of, and the income of a health savings50 account or medical savings account authorized under Chapter 51 of Title 33 or Sections51 220 and 223 of the Internal Revenue Code of 1986.52 (2.1) The debtor's aggregate interest in any funds or property held on behalf of the53 debtor, and not yet distributed to the debtor, under any retire ment or pension plan or54 system:55 (A) Which is:56 (i) maintained Maintained for public officers or employees or both by the State of57 Georgia or a political subdivision of the State of Georgia or both; and58 (ii) financially Financially supported in whole or in part by public funds of the State59 of Georgia or a political subdivision of the State of Georgia or both;60 (B) Which is:61 (i) maintained Maintained by a nonprofit corporation which is qualified as an exempt62 organization under Code Section 48-7-25 for its officers or employees or both; and63 (ii) financially Financially supported in whole or in part by funds of the nonprofit64 corporation;65 (C) To the extent permitted by the bankruptcy laws of the Unit ed States, similar66 benefits from the private sector of such debtor shall be entitled to the same treatment67 as those specified in subparagraphs (A) and (B) of this paragraph,68 S. B. 87 - 3 - 25 LC 49 2127 provided that the exempt or nonexempt status of periodic paymen ts from such a69 retirement or pension plan or system shall be as provided under subparagraph (E) of70 paragraph (2) of this subsection; or71 (D) An individual retirement account within the meaning of Tit le 26 U.S.C. Section72 408;73 (3) The debtor's interest, not to exceed the total of $5,000.0 0 in value, in all motor74 vehicles;75 (4) The debtor's interest, not to exceed $300.00 in value in a ny particular item, in76 household furnishings, household goods, wearing apparel, applia nces, books, animals,77 crops, or musical instruments that are held primarily for the p ersonal, family, or78 household use of the debtor or a dependent of the debtor. The exemption of the debtor's79 interest in the items contained in this paragraph shall not exceed $5,000.00 in total value;80 (5) The debtor's aggregate interest, not to exceed $500.00 in value, in jewelry held81 primarily for the personal, family, or household use of the debtor or a dependent of the82 debtor;83 (6) The debtor's aggregate interest, not to exceed $1,200.00 i n value plus any unused84 amount of the exemption, not to exceed $10,000.00, provided under paragraph (1) of this85 subsection, in any property;86 (7) The debtor's aggregate interest, not to exceed $1,500.00 in value, in any implements,87 professional books, or tools of the trade of the debtor or the trade of a dependent of the88 debtor;89 (8) Any unmatured life insurance contract owned by the debtor, other than a credit life90 insurance contract;91 (9) The debtor's aggregate interest, not to exceed $2,000.00 in value, less any amount of92 property of the estate transferred in the manner specified in Section 542(d) of U.S. Code93 Title 11, in any accrued dividend or interest under, or loan or cash value of, any94 S. B. 87 - 4 - 25 LC 49 2127 unmatured life insurance contract owned by the debtor under whi ch the insured is the95 debtor or an individual of whom the debtor is a dependent;96 (10) Professionally prescribed health aids for the debtor or a dependent of the debtor; and97 (11) The debtor's right to receive, or property that is traceable to:98 (A) An award under a crime victim's reparation law;99 (B) A payment on account of the wrongful death of an individual of whom the debtor100 was a dependent, to the extent reasonably necessary for the support of the debtor and101 any dependent of the debtor;102 (C) A payment under a life insurance contract that insured the life of an individual of103 whom the debtor was a dependent on the date of such individual's death, to the extent104 reasonably necessary for the support of the debtor and any dependent of the debtor;105 (D) A payment, not to exceed $10,000.00, on account of persona l bodily injury, not106 including pain and suffering or compensation for actual pecuniary loss, of the debtor107 or an individual of whom the debtor is a dependent; or108 (E) A payment in compensation of loss of future earnings of the debtor or an individual109 of whom the debtor is or was a dependent, to the extent reasona bly necessary for the110 support of the debtor and any dependent of the debtor.111 (a.1) Notwithstanding any provision of this Code section or Code Section 44-13-21 to the112 contrary, and without waiving any exemption allowed by Code Section 44-13-1, any debtor113 who is a natural person may exempt, pursuant to this article, for purposes of bankruptcy,114 the debtor's aggregate interest, not to exceed the full value, in real property or personal115 property that the debtor uses as a primary residence or in a cooperative that owns property116 that the debtor uses as a primary residence.117 (b) Pursuant to 11 U.S.C. Section 522(b)(1), an individual deb tor whose domicile is in118 Georgia is prohibited from applying or utilizing 11 U.S.C. Sect ion 522(d) in connection119 with exempting property from his or her estate; and such indivi dual debtor may exempt120 from property of his or her estate only such property as may be exempted from the estate121 S. B. 87 - 5 - 25 LC 49 2127 pursuant to 11 U.S.C. Section 522(b)(2)(A) and (B). For the purposes of this subsection,122 an 'individual debtor whose domicile is in Georgia' means an individual whose domicile123 has been located in Georgia for the 180 days immediately preceding the date of the filing124 of the bankruptcy petition or for a longer portion of such 180 day period than in any other125 place.126 (c) The exemptions and protections contained in this article a re extended to intestate127 insolvent estates in all cases where there is a living widow or child of the intestate.128 (d)(1) At any time after closing of a case filed pursuant to an act of Congress relating to129 bankruptcy, the debtor, his or her receiver or trustee, or any interested party may file with130 a clerk of court where a judgment lien is recorded an affidavit of lien release and shall131 attach thereto a certified copy of the discharge of such bankru pt or debtor and a lien132 avoidance order, or a certified copy of the order of confirmation of a plan and the plan133 as confirmed, together with a copy of the portions of the schedules filed by the debtor in134 the bankruptcy case listing the judgment creditor and identifying property as exempt. In135 addition, the filer shall certify that no order has been entered in the bankruptcy limiting136 the discharge as to the judgment or retaining the judgment lien.137 (2) Upon filing such affidavit, the lien of such judgment shal l be deemed cancelled as138 to:139 (A) Any property which was:140 (i) Identified as exempt and for which a lien avoidance order was issued; or141 (ii) Re-vested in the debtor without lien retention under a plan; and142 (B) Any other property acquired by the debtor after the filing of the bankruptcy143 petition.144 (3) The clerk of court shall file such affidavit in the deed records and index the recording145 information as to the affidavit of lien release on the judgment lien in the appropriate lien146 record."147 S. B. 87 - 6 - 25 LC 49 2127 SECTION 3.148 This Act shall become effective on July 1, 2025.149 SECTION 4.150 All laws and parts of laws in conflict with this Act are repealed.151 S. B. 87 - 7 -