How Does South Carolina’s Exemption System Work, and What Assets Can I Protect in Bankruptcy?
Federal bankruptcy law allows each state to set forth certain bankruptcy exemptions for its residents. For this reason, you should always work with a dedicated South Carolina Chapter 7 bankruptcy lawyer from Reed Law Firm, P.A. to maximize your asset exemptions in Columbia.
You don’t have to start again with nothing. Take advantage of the ‘nest egg’ South Carolina law offers Chapter 7 bankruptcy petitioners by confidentially calling (803) 726-4888 or connecting with our Columbia legal advocates online.
Overview of the South Carolina Bankruptcy Exemption System
Bankruptcy is the constitutional process of obtaining debt relief through the federal court system. It’s designed to break the chain of financial need, not further your financial distress. As such, the law exempts certain assets from being sold or seized by creditors. This includes necessities as well as pets and certain sentimental possessions. The exemption system allows you to start fresh without starting from scratch.
Although bankruptcy is a federal matter, federal law gives each state the option of ‘opting out’ of the federal exemption system and setting forth its own bankruptcy exemptions. South Carolina elected to do this, so any Chapter 7 exemptions are controlled by Title 15, Chapter 41 of the South Carolina Code.
Exempt Assets under South Carolina Bankruptcy Law
Chapter 7 Petitioners can only keep exempt property. Chapter 13 petitioners can keep most of their assets provided they’re honest about their estates and make agreed-upon payments throughout the repayment plan period. All Columbia petitioners should understand South Carolina exemptions, as sometimes Chapter 13 plans are converted into Chapter 7 proceedings.
Section 15-41-30 of the South Carolina Code sets forth the specific assets exempt from seizure, sale, or liens by creditors or the court. The amounts listed in the statute are adjusted for inflation every two years and are generally higher than those listed in the law. An experienced Columbia bankruptcy lawyer can help you maximize these benefits.
Statutory exemptions include, but are not limited to, the following:
- Homestead ($76,125 per person and $152,250 for married couples)
- Motor vehicle equity ($7,600 per person, often doubled for married couples)
- Household goods and furnishings ($6,100)
- Jewelry ($1,525)
- Professional tools and books ($2,275)
- Liquid assets (money) up to $7,600 if not claiming the homestead exemption
- Some Life insurance
- Health aids and equipment
- Retirement and social security benefits
- Unemployment income
- Alimony
- Restitution
- Firearms ($3,000)
- ‘$7,600 Wildcard’ for otherwise non-exempt items
Applying these exemptions to your case requires dedicated legal analysis by a qualified S.C. bankruptcy attorney.
Maximizing Bankruptcy Exemptions in South Carolina
The S.C. statutory exemption amounts change periodically andare currently higher than those listed in the statute due to inflation. Further, married couples filing jointly might obtain significantly higher exemptions than individuals. An experienced bankruptcy lawyer can review your case before it’s filed to maximize your exemptions and anticipated debt relief.
Dedicated Columbia, S.C. Asset Exemption Bankruptcy Attorneys
There are multiple types of bankruptcy and debt relief options for Columbia residents. Let the compassionate bankruptcy lawyers at Reed Law Firm, P.A. review your estate to help you obtain the highest exemptions with the most debt discharge. Call (803) 726-4888 or connect with our legal advocates online to schedule a confidential bankruptcy case review.
