Homestead exemption

On Sep 21, 6:34 am, Johnny <J0hn_2...@rock.com> wrote:
> If an unsecured creditor sues me and obtains a judgment of $15,000,
> can the creditor  enroll the judgment as a lien on my property or take
> my home that has a homestead exemption?   The exemption in Georgia -
> Up to $5,000 in value, no area limitation. Code of Georgia, Annotated,
> =A7 44- 13-1 and 44- 13- 100.
>
>  I do not know what the Georgia law means.

I am not a GA lawyer, and I don't either, but I'll hazard a guess.   Generally a state law homestead exemption refers to the amount of equity in a property that a debtor is allowed to keep, i.e. that is _not_ subject to seizure by legal process to help pay off the judgment debt.

So, the GA homestead law means you are allowed to keep up to $5000 in equity in your property with no limitation on the area (number of acres) that can be exempted.

If your equity in the property is worth more than $5000, the judgment creditors can seize the rest of it, either by filing a lien that will be paid off when you sell it, by forcing a judicial sale, from which all the proceeds except $5000 would go to the creditor; or by legally forcing you to take out a second mortgage on the property for all the excess equity (up to but not including the $5000 exemption) and giving the loan proceeds to the creditors.   I don't know which of these 3 possibilities GA law permits.

> In the particular county I live in I have a homestead exemption as a
> senior citizen. The property is mortgaged for $167,000 and has a
> taxable fair market value of $152,000

Since you have negative equity IMO you probably don't have anything to worry about re: keeping the house at least until you die or choose to sell.   Even if the creditors are permitted to file a lien, it would be junior to your existing mortgage, and they would likely not get anything from a sale so they probably can't force a sale or force you to take out a second mortgage.

> and gross assessment of $60,720.
> On the tax bill it shows an exemption of $60,720 and zero assessment.

Your tax bill has nothing to do with the homestead exemption from collection on judgments against you.   They are separate issues that just happen to use similar language.   A "homestead" for debtor-creditor purposes doesn't just refer to the land your house is built on; it potentially includes all kinds of property, including your car, business equipment or tools of your trade, furniture and other household goods, personal effects and clothing, and so on.   If push comes to shove you should compile a list of all the property and goods you own, what each item is worth, and how much you still owe on any property that you're making time payments for, and your lawyer can help you figure out what would be most to your advantage to claim as part of your $5000 exemption from the creditor's collection efforts.

> So what does the $5,000 exemption mean? Can a creditor execute on the
> homestead and take the home or place a lien on the property?

Maybe.   But in your case, probably not, since you have no equity in the home.   The creditors _could_ seize other property you own unless you specifically include it in your homestead exemption (adding up to a total of $5000 in value).

> What would be the situation if I were to declare bankruptcy?

IMO that would be a really bad idea unless you are specifically advised to do so by competent local counsel.   Chances are it would do nothing to further exempt you from your creditors than you already are, and would only complicate your life tremendously.   You're probably OK at this point just doing nothing.   But if the waste material hits the fan, or even before that if you want to be careful, consult a local lawyer and get real, paid advice.  Good luck,

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Mike Jacobs
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