Georgia lawmakers have approved House Bill 1024, a measure that significantly increases the amount of home equity residents can protect during bankruptcy proceedings. Signed into law by Governor Brian Kemp in May 2026, the legislation represents one of the largest updates to Georgia's bankruptcy exemption laws in more than a decade.
What the New Law Does
The bill amends Georgia's bankruptcy exemption statute by raising the homestead exemption from $21,500 to $50,000 for an individual homeowner. For married couples who jointly own a primary residence, the protected amount increases from $43,000 to $100,000. The new limits take effect on July 1, 2026. These are significant changes. If you have been told in the past that you have too much equity in your home to file Chapter 7, you should meet with your lawyer again to see if these new changes help you.
Why this Change Matters
Supporters of HB 1024 argued that Georgia's previous exemption levels had not kept pace with rising home values and inflation. As housing prices increased across the state, many homeowners facing financial hardship found themselves at greater risk of losing accumulated equity during bankruptcy proceedings. The updated exemption aims to provide stronger protection for primary residences while allowing individuals to seek debt relief without jeopardizing their homes.
Under the new law, a larger portion of a homeowner's equity will be shielded from creditors in bankruptcy cases. The legislation also includes provisions for future inflation adjustments beginning in 2031, helping ensure that exemption amounts retain their value over time.
Proponents describe the measure as a modernization of Georgia's bankruptcy framework and note that the state's previous exemption levels were lower than those in several neighboring states. They contend that increasing the exemption will provide greater financial stability for families experiencing economic hardship. Critics, however, have expressed concerns that larger exemptions could reduce the assets available to satisfy creditor claims in certain bankruptcy cases.
HB 1024 passed both chambers of the Georgia General Assembly before receiving the governor's signature. With its enactment, Georgia joins a number of states that have recently updated bankruptcy protections to reflect changing housing market conditions and economic realities.
When the law goes into effect July 1, 2026, bankruptcy attorneys, lenders, and financial professionals will be watching closely to assess its impact on bankruptcy filings and homeowner financial security throughout Georgia. The measure is expected to benefit homeowners with significant equity who might previously have faced difficult choices when seeking bankruptcy protection.
What to do Now?
If you have been advised by an attorney that you have too much equity in your home to file Chapter 7, you should seek a second consultation and ask how this new law might help you.