If you are considering bankruptcy, you may be wondering if you will be left with nothing in your name. This is a misconception that many people have, keeping individuals who could benefit from bankruptcy from getting the help they need. These myths keep hard-working people from getting back on their feet.
At Reed Law Firm, P.A., our bankruptcy attorneys believe that it is important that those who need financial relief thoroughly understand their legal options. In this article, our South Carolina bankruptcy team discusses the state exemptions for the current year, as well as your ability to acquire property after proceedings have concluded.
State Bankruptcy Exemptions
As of June 2024, the South Carolina bankruptcy exemptions are as follows:
- Homestead: You can claim up to $67,100 in your home. A married couple filing joint bankruptcy can claim double the individual limit ($134,175).
- Burial plot: If you do not claim the homestead exemption, the exemption can be applied to a burial plot valued at $67,100.
- Motor vehicle: $6,700 individually in your vehicle, or $13,400 if filing jointly.
- Household furnishings: $5,375 individually or $10,750 jointly.
- Jewelry: $1,350 individually or $2,700 jointly.
- Cash and liquid assets (only if not using homestead exemption): $6,700 individually or $13,400 jointly.
- Professional books or tools of the trade: $2,025 individually or $4,050 jointly.
- Wildcard exemption (can be applied to any property you own): $6,700 individually or $13,400 jointly.
Will I Need to Sell My Car or House?
There are two different bankruptcy filings available to individuals’ filing bankruptcy: chapter 7 and Chapter 13. If you are filing Chapter 7 bankruptcy, and your home is not exempt, the Chapter 7 trustee may sell your house to pay off creditors.
If you are filing Chapter 13, you will have the choice to sell your house or vehicle to pay off debts. This will not be forced upon you but will rather be your decision if you want to pay off the debt sooner.
Acquiring New Property After Bankruptcy
Once your debt is discharged, you will be able to acquire new possessions and real property. Bankruptcy is not a form of court punishment but rather a chance for a new beginning. If you are considering taking out any lines of credit or making any large purchases, this cannot be done during bankruptcy proceedings without the approval of the trustee or the court.
Bankruptcy stays on your credit report even after your case is discharged. Chapter 7 bankruptcy remains on your credit report for ten years, and Chapter 13 remains on your credit history for seven years. So, if you are considering taking out a credit card after your case is discharged, you could potentially be denied.
Bankruptcy Attorneys Serving South Carolina Residents
At Reed Law Firm, P.A., we know that life can throw you a curveball, putting you into a situation that you would otherwise never be in. If you are ready to free yourself from the burden of debt, there is no time to waste. Contact our office today by phone or by completing our online contact form to discuss your situation. We offer complimentary initial consultations.
