SB 87: Levy and Sale of Property; exemption of the full value of a debtor's primary residence from levy and sale; provide

Georgia law currently lets a debtor shield only a limited dollar amount of property from being seized to pay a judgment: $5,000 for general property, or up to $21,500 if that property is the debtor's primary residence. This bill rewrites O.C.G.A. § 44-13-1 so that a debtor's primary residence is exempt from levy and sale (a court-ordered seizure and forced sale of property) at its full value, not just up to $21,500. The bill also amends Georgia's bankruptcy exemption statute (O.C.G.A. § 44-13-100) to add a new provision letting a debtor exempt the full value of their interest in a primary residence in a bankruptcy case, on top of the existing exemptions already listed for retirement funds, vehicles, household goods, and other property. The changes would take effect July 1, 2025.

• Raises the homestead exemption from levy and sale from a $21,500 cap to the full value of a debtor's primary residence under O.C.G.A. § 44-13-1.
• Adds a new bankruptcy exemption (subsection a.1 of O.C.G.A. § 44-13-100) letting a debtor exempt the full value of their interest in a primary residence used as such.
• Keeps the existing exceptions to the exemption, meaning the residence can still be seized for unpaid taxes, purchase money owed, labor or material liens, or to remove encumbrances.
• Leaves the separate $21,500 bankruptcy homestead cap in subsection (a)(1) in place while creating an additional, uncapped exemption path in the new subsection.
• Sets the effective date for all changes as July 1, 2025.

Homeowners in Georgia facing debt collection lawsuits or bankruptcy, their creditors who currently can force the sale of a residence beyond a $21,500 exemption, bankruptcy trustees, courts, and county clerks who record and release judgment liens against real property.

Under current law, a creditor can force the sale of a home to satisfy a judgment once its value exceeds $21,500 in protected equity. This bill would stop that by protecting the home's full value, meaning many homeowners with equity above that threshold could keep their homes even after losing a debt collection case or filing bankruptcy.

• Section 1 revises O.C.G.A. § 44-13-1 to replace the $21,500 primary residence exemption cap with an exemption for 'the full value' of the residence.
• Section 1 retains the existing exceptions allowing enforcement against the residence for taxes, purchase money, labor, materials, or removing encumbrances.
• Section 2 adds new subsection (a.1) to O.C.G.A. § 44-13-100, letting a debtor in bankruptcy exempt the full value of their interest in property used as a primary residence, without waiving the exemption under Code Section 44-13-1.
• Section 2 clarifies the new full-value bankruptcy exemption applies notwithstanding other provisions of that Code section or Code Section 44-13-21.
• Section 3 sets the effective date as July 1, 2025.
• Section 4 repeals conflicting laws.

1. 2025-02-05Senate Read and Referred (Senate)
2. 2025-02-04Senate Hopper (Senate)

• Ed Setzler (R, SD-037)Primary sponsor
• Kay Kirkpatrick (R, SD-032)
• Randy Robertson (R, SD-029)
• Steve Gooch (R, SD-051)
• Carden Summers (R, SD-013)
• Brian Strickland (R, SD-042)

• homestead exemption
• bankruptcy law
• debt collection
• property seizure
• homeowner protections