In In re Cady, Ch. 7 No. 24-41026-ejc, 2025 WL 1587266 (Bankr. S.D. Ga. June 4, 2025) the issue was whether the Debtor, a real estate agent, could claim an exemption in her vehicle as a tool of the trade. In addition to claiming vehicle and wild card exemptions, Debtor argued that her vehicle was integral to her occupation and, therefore, qualified for an additional exemption pursuant to O.C.G.A. §44-13-100(a)(7). This subsection allows a debtor to exempt:

(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.

Judge Coleman noted that there was a split of authority in Georgia Bankruptcy Courts. In Curry v. Dial Fin. Corp. (Matter of Curry), 18 B.R. 358 (Bankr. N.D. Ga. 1982), Judge Kahn held that a vehicle could never be a tool of the trade as the Georgia exemption statute “contemplates that the [debtor] uses the tool with his hands, and that the [debtor’s] work requires some degree of manual skill.” Judge Bihary followed this reasoning in Conerton v. Wachovia Bank (In re Conerton), No. 03-62155, 2004 WL 5846767 (Bankr. N.D. Ga. Jan. 13, 2004) (Bihary, J.) See also Mitchell v. First Franklin Fin. Corp. (In re Mitchell), No. 17-68428-PMB, 2018 WL 1442256 (Bankr. N.D. Ga. March 21, 2018) (Baisier, J.) (vehicle is incidental to, but not an integral part of, debtor’s work as a law clerk who travels to meet clients). Other Courts have allowed the exemption under certain circumstances. Schneider v. Fidelity Nat’l Bank, 37 B.R. 747 (Bankr. N.D. Ga 1984) (Norton, J.) (allowing an exemption for a traveling salesman when travel was the essence of his occupation).

The Judge reviewed the statutory text and definitions of “tools” and “trade,” but did not find them dispositive. He then reviewed the exemption statute as a whole, finding it “noteworthy that the Georgia exemption statute has separate exemptions for motor vehicles (O.C.G.A. § 44-13-100(a) (3)) and for tools of the trade (O.C.G.A. § 44-13-100(a)(7)).” Finding that was also not dispositive, the Court reviewed, in detail, the history of the exemption. Ultimately, Judge Coleman agreed with Judge Kahn’s reasoning in Curry.

[I]n Georgia a tool of the trade is an implement used by a person in that person’s work. Tools of the trade may be far more sophisticated today than they were when the Supreme Court of Georgia considered the question, but the term still contemplates that the person uses the tool with his hands, and that the person’s work requires some degree of manual skill.

This interpretation is only bolstered by the statute’s grouping of tools of the trade with implements and professional books, by the separate motor vehicle exemption, and by the relatively low dollar amount of the tools-of-the-trade exemption. Bringing together these disparate threads, the Court finds that the Debtor cannot exempt her BMW as a tool of her trade as a realtor under O.C.G.A. § 44-13-100(a)(7).

Thus, at least in the Southern District in Judge Coleman’s Court, a debtor cannot claim an exemption in a vehicle as a tool of the trade.

Scott Riddle’s practice focuses on bankruptcy and reorganization. Scott has represented businesses and other parties in Bankruptcy cases for over 20 years.  You can contact Scott at 404-815-0164 or scott@scottriddlelaw.com.  For more information, click here.