HB1024: HB1024 Property; debtor's aggregate interest in real property or personal property used as a residence; revise exemption

Georgia law lets someone facing bankruptcy or handling an insolvent estate protect a certain amount of equity in their home, a burial plot, or a cooperative residence from being taken by creditors. This bill raises those protected amounts under Georgia's exemption law (O.C.G.A. § 44-13-100). For an individual, the protected amount rises from $21,500 to $50,000. For married couples where the property is the primary residence of both spouses and title is held by the spouse who is the debtor, the protected amount rises from $43,000 to $100,000. Starting July 1, 2031, and every year after, both exemption amounts will be automatically adjusted upward based on an inflation rate calculated by the state revenue commissioner using an index such as the federal Consumer Price Index. The bill repeals conflicting laws and does not state a separate effective date for the initial increases beyond the standard process for enacted bills.

• Raises the individual homestead exemption in bankruptcy or insolvent estate proceedings from $21,500 to $50,000 for a debtor's interest in a residence, cooperative residence, or burial plot.
• Raises the married-couple exemption from $43,000 to $100,000 when the property is the primary residence of both spouses and title is held by the debtor spouse.
• Creates an annual inflation adjustment to both exemption amounts starting July 1, 2031, based on a rate set by the state revenue commissioner.
• Directs the state revenue commissioner to create a standardized method for calculating the annual inflation rate, which may rely on the federal Consumer Price Index or a similar federal index.
• Repeals any existing laws that conflict with these changes.

Georgians who file for bankruptcy or whose estates become insolvent, especially homeowners and married couples trying to protect equity in their primary residence, as well as creditors, bankruptcy courts, probate courts, and the state revenue commissioner's office, which must set the inflation index.

A higher exemption means more Georgians facing bankruptcy or an insolvent estate can keep home equity out of reach of creditors, potentially letting them stay in or later sell their home. The automatic inflation adjustment starting in 2031 means these protections would keep pace with rising costs over time.

• Section 1 amends O.C.G.A. § 44-13-100(a)(1) to raise the individual residence exemption from $21,500 to $50,000.
• Section 1 raises the married-couple exemption, applicable when the debtor spouse holds title to the couple's shared primary residence, from $43,000 to $100,000.
• Section 1 adds a new subparagraph (B) defining 'inflation rate' as an annual index set by the state revenue commissioner, which may use the Consumer Price Index or a similar federal index.
• Section 1 provides that beginning July 1, 2031, and each year after, both exemption amounts will be multiplied by that inflation rate.
• 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 exemptions
• homestead protection
• property law
• personal finance
• estate law