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 to
exemptions from levy and sale of property, so as to provide for the exemption of the full
value of a debtor's primary residence from levy and sale by virtue of any process whatever
under the laws of this state; to provide for the exemption, for purposes of bankruptcy, of the
full value of a debtor's aggregate interest in his or her primary residence; to provide for
related matters; to provide an effective date; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 13 of Title 44 of the Official Code of Georgia Annotated, relating to exemptions
from levy and sale of property, is amended by revising Code Section 44-13-1, relating to
amount of exemption, who may claim exemption, and what charges enforceable, as follows:
"44-13-1.
Except as otherwise provided in this article, there shall be exempt from levy and sale by
virtue of any process whatever under the laws of this state any real or personal property or
both of a debtor in the amount of $5,000.00 or <del>$21,500.00 for</del> <ins>the full value of</ins> real or
personal property that is the debtor's primary residence. No court or ministerial officer in
this state shall ever have jurisdiction or authority to enforce any judgment, execution, or
decree against property set apart under this Code section, including such improvements as
may be made thereon from time to time, except for taxes, for the purchase money of the
property, for labor done on the property, for material furnished for the property, or for the
removal of encumbrances on the property."
SECTION 2.
Said chapter is further amended in Code Section 44-13-100, relating to exemptions for
purposes of bankruptcy and intestate insolvent estates, by adding a new subsection to read
as follows:
"44-13-100.
(a) In lieu of the exemption provided in Code Section 44-13-1, any debtor who is a natural
person may exempt, pursuant to this article, for purposes of bankruptcy, the following
property:
(1) The debtor's aggregate interest, not to exceed $21,500.00 in value, in real property
or personal property that the debtor or a dependent of the debtor uses as a residence, in
a cooperative that owns property that the debtor or a dependent of the debtor uses as a
residence, or in a burial plot for the debtor or a dependent of the debtor. In the event title
to property used for the exemption provided under this paragraph is in one of two spouses
who is a debtor, the amount of the exemption hereunder shall be $43,000.00;
(2) The debtor's right to receive:
(A) A social security benefit, unemployment compensation, or a local public assistance
benefit;
(B) A veteran's benefit;
(C) A disability, illness, or unemployment benefit;
(D) Alimony, support, or separate maintenance, to the extent reasonably necessary for
the support of the debtor and any dependent of the debtor;
(E) A payment under a pension, annuity, or similar plan or contract on account of
illness, disability, death, age, or length of service, to the extent reasonably necessary for
the support of the debtor and any dependent of the debtor;
(F) A payment from an individual retirement account within the meaning of Title 26
U.S.C. Section 408 to the extent reasonably necessary for the support of the debtor and
any dependent of the debtor; and
(G) Moneys paid into or out of, the assets of, and the income of a health savings
account or medical savings account authorized under Chapter 51 of Title 33 or Sections
220 and 223 of the Internal Revenue Code of 1986.
(2.1) The debtor's aggregate interest in any funds or property held on behalf of the
debtor, and not yet distributed to the debtor, under any retirement or pension plan or
system:
(A) Which is:
(i) <del>maintained</del> <ins>Maintained</ins> for public officers or employees or both by the State of
Georgia or a political subdivision of the State of Georgia or both; and
(ii) <del>financially</del> <ins>Financially</ins> supported in whole or in part by public funds of the State
of Georgia or a political subdivision of the State of Georgia or both;
(B) Which is:
(i) <del>maintained</del> <ins>Maintained</ins> by a nonprofit corporation which is qualified as an exempt
organization under Code Section 48-7-25 for its officers or employees or both; and
(ii) <del>financially</del> <ins>Financially</ins> supported in whole or in part by funds of the nonprofit
corporation;
(C) To the extent permitted by the bankruptcy laws of the United States, similar
benefits from the private sector of such debtor shall be entitled to the same treatment
as those specified in subparagraphs (A) and (B) of this paragraph,
provided that the exempt or nonexempt status of periodic payments from such a
retirement or pension plan or system shall be as provided under subparagraph (E) of
paragraph (2) of this subsection; or
(D) An individual retirement account within the meaning of Title 26 U.S.C. Section
408;
(3) The debtor's interest, not to exceed the total of $5,000.00 in value, in all motor
vehicles;
(4) The debtor's interest, not to exceed $300.00 in value in any particular item, in
household furnishings, household goods, wearing apparel, appliances, books, animals,
crops, or musical instruments that are held primarily for the personal, family, or
household use of the debtor or a dependent of the debtor. The exemption of the debtor's
interest in the items contained in this paragraph shall not exceed $5,000.00 in total value;
(5) The debtor's aggregate interest, not to exceed $500.00 in value, in jewelry held
primarily for the personal, family, or household use of the debtor or a dependent of the
debtor;
(6) The debtor's aggregate interest, not to exceed $1,200.00 in value plus any unused
amount of the exemption, not to exceed $10,000.00, provided under paragraph (1) of this
subsection, in any property;
(7) The debtor's aggregate interest, not to exceed $1,500.00 in value, in any implements,
professional books, or tools of the trade of the debtor or the trade of a dependent of the
debtor;
(8) Any unmatured life insurance contract owned by the debtor, other than a credit life
insurance contract;
(9) The debtor's aggregate interest, not to exceed $2,000.00 in value, less any amount of
property of the estate transferred in the manner specified in Section 542(d) of U.S. Code
Title 11, in any accrued dividend or interest under, or loan or cash value of, any
unmatured life insurance contract owned by the debtor under which the insured is the
debtor or an individual of whom the debtor is a dependent;
(10) Professionally prescribed health aids for the debtor or a dependent of the debtor; and
(11) The debtor's right to receive, or property that is traceable to:
(A) An award under a crime victim's reparation law;
(B) A payment on account of the wrongful death of an individual of whom the debtor
was a dependent, to the extent reasonably necessary for the support of the debtor and
any dependent of the debtor;
(C) A payment under a life insurance contract that insured the life of an individual of
whom the debtor was a dependent on the date of such individual's death, to the extent
reasonably necessary for the support of the debtor and any dependent of the debtor;
(D) A payment, not to exceed $10,000.00, on account of personal bodily injury, not
including pain and suffering or compensation for actual pecuniary loss, of the debtor
or an individual of whom the debtor is a dependent; or
(E) A payment in compensation of loss of future earnings of the debtor or an individual
of whom the debtor is or was a dependent, to the extent reasonably necessary for the
support of the debtor and any dependent of the debtor.
<ins>(a.1) Notwithstanding any provision of this Code section or Code Section 44-13-21 to the
contrary, and without waiving any exemption allowed by Code Section 44-13-1, any debtor
who is a natural person may exempt, pursuant to this article, for purposes of bankruptcy,
the debtor's aggregate interest, not to exceed the full value, in real property or personal
property that the debtor uses as a primary residence or in a cooperative that owns property
that the debtor uses as a primary residence.
</ins> (b) Pursuant to 11 U.S.C. Section 522(b)(1), an individual debtor whose domicile is in
Georgia is prohibited from applying or utilizing 11 U.S.C. Section 522(d) in connection
with exempting property from his or her estate; and such individual debtor may exempt
from property of his or her estate only such property as may be exempted from the estate
pursuant to 11 U.S.C. Section 522(b)(2)(A) and (B). For the purposes of this subsection,
an 'individual debtor whose domicile is in Georgia' means an individual whose domicile
has been located in Georgia for the 180 days immediately preceding the date of the filing
of the bankruptcy petition or for a longer portion of such 180 day period than in any other
place.
(c) The exemptions and protections contained in this article are extended to intestate
insolvent estates in all cases where there is a living widow or child of the intestate.
(d)(1) At any time after closing of a case filed pursuant to an act of Congress relating to
bankruptcy, the debtor, his or her receiver or trustee, or any interested party may file with
a clerk of court where a judgment lien is recorded an affidavit of lien release and shall
attach thereto a certified copy of the discharge of such bankrupt or debtor and a lien
avoidance order, or a certified copy of the order of confirmation of a plan and the plan
as confirmed, together with a copy of the portions of the schedules filed by the debtor in
the bankruptcy case listing the judgment creditor and identifying property as exempt. In
addition, the filer shall certify that no order has been entered in the bankruptcy limiting
the discharge as to the judgment or retaining the judgment lien.
(2) Upon filing such affidavit, the lien of such judgment shall be deemed cancelled as
to:
(A) Any property which was:
(i) Identified as exempt and for which a lien avoidance order was issued; or
(ii) Re-vested in the debtor without lien retention under a plan; and
(B) Any other property acquired by the debtor after the filing of the bankruptcy
petition.
(3) The clerk of court shall file such affidavit in the deed records and index the recording
information as to the affidavit of lien release on the judgment lien in the appropriate lien
record."
SECTION 3.
This Act shall become effective on July 1, 2025.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.