HB 1024: Property; debtor's aggregate interest in real property or personal property used as a residence; revise exemption

Under current Georgia law, someone filing for bankruptcy or handling an insolvent estate can protect a limited amount of equity in their home, a co-op residence, or a burial plot from creditors. That protected amount, known as the homestead exemption, has been $21,500 for an individual and $43,000 when the home is jointly owned by a married couple. This bill rewrites O.C.G.A. § 44-13-100 to raise those amounts to $50,000 for an individual debtor and $100,000 for spouses who both use the property as their primary residence. Starting July 1, 2031, and every year after that, both figures would automatically increase based on an inflation rate calculated by the state revenue commissioner, using a method that may rely on the federal Consumer Price Index or a similar index. The rest of the exemption, covering residences, cooperative housing, and burial plots, stays the same.

• Raises the individual homestead exemption in bankruptcy and insolvent estate cases from $21,500 to $50,000 in property value.
• Raises the exemption for married couples who both use the property as their primary residence from $43,000 to $100,000.
• Requires the exemption amounts to be adjusted upward every year starting July 1, 2031, based on an inflation rate.
• Directs the state revenue commissioner to create a standardized method for calculating that annual inflation rate, which may use the federal Consumer Price Index.

Georgians who file for bankruptcy or whose insolvent estates are settled after death, particularly homeowners and married couples trying to protect equity in their primary residence, co-op residents, and people seeking to protect a burial plot from creditors.

A higher exemption means more Georgians could keep a larger share of their home equity when going through bankruptcy or an insolvent estate, rather than losing it to creditors. The automatic inflation adjustments starting in 2031 would keep the protection from losing value over time as home prices rise.

• Section 1 amends O.C.G.A. § 44-13-100(a)(1)(A), raising the individual exemption for a residence, co-op interest, or burial plot from $21,500 to $50,000.
• Section 1 raises the exemption for spouses who both use jointly titled property as their primary residence from $43,000 to $100,000.
• Section 1 adds new language requiring both exemption amounts to be multiplied by an annual inflation rate starting July 1, 2031.
• Section 1 adds a new subsection (B) defining 'inflation rate' as an index the state revenue commissioner sets annually, which may be based on the Consumer Price Index or a comparable federal index.
• Section 2 repeals any conflicting laws.

1. 2026-05-11Effective Date 2026-07-01
2. 2026-05-11Act 480
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-06House Sent to Governor (House)
5. 2026-03-23Senate Passed/Adopted (Senate)
6. 2026-03-23Senate Third Read (Senate)
7. 2026-03-19Senate Read Second Time (Senate)
8. 2026-03-18Senate Committee Favorably Reported (Senate)

• Soo Hong (R, HD-103)Primary sponsor
• Matt Reeves (R, HD-099)
• Rob Leverett (R, HD-123)
• Marty Harbin (R, SD-016)

1. PassedHouse voteFebruary 25, 2026

   170 yea, 0 nay (2 not voting, 5 absent)

   Passage: House Vote #559

2. PassedSenate voteMarch 23, 2026

   51 yea, 0 nay (0 not voting, 3 absent)

   Passage: Senate Vote #792

• bankruptcy law
• homestead exemption
• property protection
• debtor rights
• inflation adjustments