Fresh Start South Carolina

Exemptions are a very important part of your bankruptcy.  In a Chapter 7 liquidation, the property that you are permitted to keep is the property that is exempt under state law.  Even if there is a lien on exempt property, the bankruptcy court may void a lien that impairs an exemption permitting you to keep the property.  It is also permissible for the trustee to sell property and return to you the cash value of your exemption.

Exemptions are also used in Chapter 13 because what your creditors would receive in a Chapter 7 is the base amount that you must pay in your Chapter 13 plan (This is called the best interest test.)  You must claim your exemptions within fifteen (15) days of filing your bankruptcy petition.

(Click here to read an order discussing federal law preemption for retirement and deferred compensation funds.)
(Have you moved from another state?  Click here to look up your prior state’s exemptions. www.exemptionsexpress.com.)

If you have lived in South Carolina for two years, you are required to use the following state exemptions.

Updates:

State Exemption Changes – On July 1, 2010, the State Budget and Control Board will adjust the amounts for property exempt under S.C. Code Ann. § 15-41-30 by 6.8 percent. The new dollar amounts will be as follows:

Homestead Exemption, § 15-41-30(A)(1):

• $53,375 (single owner);
• $106,750  (multiple owners)

One Motor Vehicle,  § 15-41-30(A)(2):

• $5,350

Household Goods, § 15-41-30(A)(3):

• $4,275

Jewelry, § 15-41-30(A)(4):

• $1,075

Liquid Assets  (if no homestead),  § 15-41-30(A)(5):

• $5,350

Tools of the Trade, § 15-41-30(A)(6):

• $1,600

Wildcard, § 15-41-30(A)(7):

• $5,350

Unmatured Life Insurance, § 15-41-30(A)(9):

• $4,275

 

• The debtor’s aggregate interest, not to exceed fifty thousand dollars in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence.
• The debtor’s aggregate interest, not to exceed fifty thousand dollars in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence.
• The debtor’s interest, not to exceed five thousand dollars in value, in one motor vehicle.
• The debtor’s interest, not to exceed four thousand dollars in aggregate value in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor. (For the limits of “household goods” see 11 USC 522(f)(4)(A) & (B); see this South Carolina case for a discussion by our court.)
• The debtor’s aggregate interest, not to exceed one thousand dollars in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
• The debtor’s aggregate interest in cash and other liquid assets to the extent of a value not exceeding five thousand dollars, except that this exemption is available only to an individual who does not claim a homestead exemption. The term “liquid assets” includes deposits, securities, notes, drafts, unpaid earnings not otherwise exempt, accrued vacation pay, refunds, prepayments, and other receivables.
• The debtor’s aggregate interest, not to exceed one thousand five hundred dollars in value, in any implements, professional books, or tools of the trade of the debtor or the trade of a dependent of the debtor.
• The debtor’s aggregate interest in any property, not to exceed five thousand dollars in value of an unused exemption amount to which the debtor is entitled pursuant to subsection (A), items (1) through (6).
• Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract.
• The debtor’s aggregate interest, not to exceed in value four thousand dollars less any amount of property of the estate transferred in the manner specified in Section 542(d) of the Bankruptcy Code of 1978, in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.
• Professionally prescribed health aids for the debtor or a dependent of the debtor.
• The debtor’s right to receive or property that is traceable to: a social security benefit, unemployment compensation, or a local public assistance benefit; a veteran’s benefit; a disability benefit, except as provided in Section 15-41-33, or an illness or unemployment benefit; alimony, support, or separate maintenance; or a payment under a stock bonus, pension, profit sharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service,
  • unless:
  • the plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor’s rights under the plan or contract arose;
  • the payment is on account of age or length of service; and the plan or contract does not qualify under Sections 401(a), 403(a), 403(b), or 409 of the Internal Revenue Code of 1954 (26 U.S.C. 401(a), 403(a), 403(b), or 409).
• The debtor’s right to receive or property that is traceable to:
  • an award under a crime victim’s reparation law;
  • a payment on account of the bodily injury of the debtor or of the wrongful death or bodily injury of another individual of whom the debtor was or is a dependent; or
  • payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of that individual’s death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
• The debtor’s right to receive individual retirement accounts as described in Sections 408(a) and 408A of the Internal Revenue Code, individual retirement annuities as described in Section 408(b) of the Internal Revenue Code, and accounts established as part of a trust described in Section 408(c) of the Internal Revenue Code, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
• A claimed exemption may be reduced or eliminated by the amount of a fraudulent conveyance into the individual retirement account or other plan. For purposes of this item, “Internal Revenue Code” has the meaning provided in Section 12-6-40(A).
• The debtor’s interest in a pension plan qualified under the Employee Retirement Income Security Act of 1974, as amended.

Adjustments to the exemption amounts are published each July in the South Carolina State Register.