If you're struggling with debt and considering bankruptcy, one of the first questions that comes up is, "Will I lose my house or car?" It's a valid concern—after all, your home and your vehicle are essentials. The good news is that bankruptcy doesn't always mean giving up everything, especially in Georgia.

Let’s break down how it works.

Can You Keep Your House in Bankruptcy?

In many cases, yes—you can keep your home if you file for bankruptcy in Georgia. But it depends on three main factors:

1. Are You Current on Your Mortgage?

• If you're behind, Chapter 13 may allow you to catch up on missed payments over time.
• If you're current, Chapter 7 may let you keep your home as long as your equity is protected by Georgia’s exemptions.

2. How Much Equity Do You Have?

Georgia’s homestead exemption allows you to protect up to $21,500 in equity ($43,000 if jointly owned with a spouse). If your equity is under that limit, you’re more likely to keep your home.

3. Are You Filing Chapter 7 or Chapter 13?

• Chapter 7: Quick debt relief, but your assets must fall within the exemption limits.
• Chapter 13: Lets you keep your property and repay your debt through a plan.

What About Your Car?

Just like with your house, you can often keep your vehicle—even if you still owe money on it.

Georgia’s Vehicle Exemption:

• You can protect up to $5,000 in equity in one motor vehicle.
• If your equity is higher, you might still keep your car by using the wildcard exemption or by filing Chapter 13.

Behind on Car Payments?

• Chapter 13 gives you a chance to catch up on missed payments and avoid repossession.
• If you’re current, and your equity is protected, Chapter 7 may allow you to reaffirm the loan and keep the car.

Important: Don’t Wait Too Long

If you're already getting collection calls or facing foreclosure or repossession, timing is key. Filing for bankruptcy can trigger an automatic stay, which stops most collection efforts immediately—including foreclosure and garnishment.

Local Help from a Georgia Bankruptcy Attorney

At Jack Setters Attorney at Law, we know how stressful it is to feel like you might lose everything. That’s why we walk you through every option and explain exactly what you can keep. With over 30 years of experience, we help Georgia residents protect what matters and get a fresh start.

Contact us today to schedule a free consultation. Let’s talk about your goals—and your options.