South Carolina Bankruptcy Exemptions: What You Can Keep in 2024

Understanding South Carolina Bankruptcy Exemptions in Chapter 7

Filing bankruptcy doesn’t mean losing everything you own. Bankruptcy exemptions protect your property from being sold to repay creditors.

A bankruptcy trustee can sell your nonexempt property. However, you can apply exemptions to safeguard most or all of your assets.

South Carolina offers specific exemptions for Chapter 7 filers. Claiming every exemption that applies prevents unnecessary loss of your hard-earned assets.

You worked hard for what you have. Proper exemption planning protects your fresh start. If you need help determining which debts qualify for Chapter 7 discharge, speak with a bankruptcy attorney for free.

Can You Use Federal Bankruptcy Exemptions in South Carolina?

Only 17 states let residents choose between state and federal exemptions. South Carolina isn’t one of them.

You must use South Carolina’s state-specific exemptions. Federal exemptions are not available to South Carolina residents.

Some federal law influences how South Carolina structures its exemptions. But the exempt property types and exemption amounts are state-determined.

One critical rule: You must live in South Carolina for at least 2 years. Otherwise, you may not qualify to claim South Carolina exemptions.

Complete List of South Carolina Bankruptcy Exemptions

Married couples filing jointly can double most exemption amounts listed below. Each spouse claims a full set of exemptions for co-owned property.

If only one spouse owns an asset, you cannot double that exemption. Calculate carefully when planning your joint filing strategy.

The South Carolina Homestead Exemption

The homestead exemption protects equity in your primary residence. Equity means the amount you’ve already paid, not the total property value.

Here’s an example of how equity works:

• Original home loan: $75,000
• Amount paid so far: $25,000
• Remaining balance: $50,000
• Your equity: $25,000

South Carolina protects up to $76,125 of equity in your homestead. Joint filers who co-own their home can exempt $152,250 in equity.

Don’t own a home? You can use this exemption for a burial plot valued up to $59,100.

If you exempt your home equity and stay current on payments, you’ll likely keep your home.

Motor Vehicle Exemption

You can protect equity in one motor vehicle. Single filers exempt up to $6,100 in vehicle equity.

Joint filers can double that amount to $12,200 for a shared primary vehicle.

Personal Property Exemptions

South Carolina’s personal property exemptions are modest. But a generous wildcard exemption covers items not listed here.

You can exempt the following personal property. Double these amounts if married and filing jointly:

• Guns: Up to three rifles, shotguns, or pistols totaling $3,000 maximum
• Health aids: Full value protected
• Tools of the trade: Up to $1,825 total
• Jewelry: Up to $1,225 total
• Household items: Up to $4,875 total for animals, appliances, books, clothing, crops, furnishings, household goods, and musical instruments

Money Benefits and Income Sources

South Carolina protects many monetary assets at their full value. These exemptions safeguard your financial stability during bankruptcy:

• Accident and disability benefits
• Alimony and child support
• College investment program trust funds
• Crime victims’ compensation
• Disability and illness benefits
• ERISA-qualified retirement benefits
• Fraternal benefit society benefits
• General relief and aid to blind, aged, and disabled
• Group life insurance proceeds’ cash value (per statutory limits)
• IRAs and Roth IRAs (federal maximum under 11 U.S.C. § 522)
• Life insurance coverage for spouse and dependents (up to $50,000, excluding policies purchased within 24 months before filing)
• Life insurance dividends, interest, or cash value from policies for dependents (up to $4,875)
• Life insurance proceeds from policies for dependents (when necessary for support)
• Life insurance proceeds when policy prohibits creditor payment
• Local public assistance
• Personal injury recoveries
• Public employee pensions (firefighters, judges, law enforcement, etc.)
• Social Security benefits
• Tax-exempt retirement accounts (401(k)s, 403(b)s, profit-sharing plans, SEP and SIMPLE IRAs, defined benefit plans)
• Unemployment compensation
• Unmatured life insurance contracts (credit insurance policies excluded)
• Veterans’ benefits
• Workers’ compensation
• Wrongful death recoveries for someone you depended on

The Wildcard Exemption and Other Protections

The wildcard exemption is incredibly valuable. Use it for property that doesn’t fit other categories or exceeds category limits.

Single filers can exempt an additional $6,100 in any property type. Joint filers can protect $12,200 using the wildcard exemption.

If you don’t need the homestead exemption for a residence, you can exempt up to $5,900 in cash. You can still protect a burial plot separately.

Business partnership property is generally exempt in personal bankruptcy filings. Your partnership interests remain protected under South Carolina law.

Planning Your Chapter 7 Filing Strategy

Careful exemption planning makes the difference between keeping and losing your assets. Calculate your equity in each asset category before filing.

Document all property values and ownership details. Married couples should determine which assets are co-owned versus individually owned.

The wildcard exemption gives you flexibility for unusual or valuable items. Maximize this exemption to protect what matters most to you.

South Carolina’s exemptions provide solid protection for most filers. Combined with the wildcard provision, you can safeguard your essential property.

Getting professional guidance ensures you claim every exemption you deserve. Speak with a bankruptcy attorney for free to review your specific situation and develop a comprehensive exemption strategy.