SOUTH CAROLINA BANKRUPTCY LAW

South Carolina Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

South Carolina Bankruptcy Statistics: In South Carolina, in 2009, 9,799 bankruptcies were filed. Business bankruptcies accounted for 446 or 4.55% and personal bankruptcies accounted for 9,353 or 95.45% of the total filings.

South Carolina State Bankruptcy Exemptions

Homestead

The home (“homestead”) exemption is limited to $50,000, and joint owners may double. South Carolina defines “homestead” to include real property and co-ops.

Personal Property

The following expenses or items are exempt in their entirety in South Carolina:

1. College investment program trust fund
2. Health aids
3. Personal injury and wrongful death recoveries for a person the debtor depended on for support

The following expenses or items are exempt up to a specified limit in South Carolina:

1. Motor vehicles limited to $5,000
2. Burial plot is limited to $50,000 (in lieu of homestead)
3. Cash and other liquid assets are limited to $5,000 (in lieu of burial and homestead)
4. Jewelry is limited to $1,000
5. Jewelry is limited to $1,000
6. Animals, crops, appliances, books, clothing, household goods, furnishings, and musical instruments are limited to $4,000 total

Pension

The following individuals’ and their survivors’ pension benefits are exempt when filing for bankruptcy in South Carolina:

1. Public employees
2. Judges and solicitors
3. General assembly members
4. Firefighters
5. Police officers

The following pension types are exempt or partially exempt when filing for bankruptcy in South Carolina:

1. ERISA qualified benefits
2. IRAs

Insurance

The following insurance types are entirely or partially exempt when filing for bankruptcy in South Carolina:

1. Accident, illness, or disability benefits
2. Life insurance policy proceeds of a person on whom the debtor depended for support
3. Life insurance policy avails up to $4,000 from a person on whom the debtor depended for support
4. Accrued life insurance policy benefits after the insured’s death
5. Fraternal benefit society
6. Unmatured life insurance contract (except credit insurance policies)
7. Annuity contract and life insurance proceeds
8. Proceeds and value of life insurance payable to the beneficiary if the beneficiary is not the insured’s estate; and, if the proceeds are for the express benefit of the insured’s spouse or other dependents. The life insurance policy must have been purchased at least 2 years before filing to avoid a $4,000 limit.

Public Benefits

The following public benefits are exempt when filing for bankruptcy in South Carolina:

1. Crime victims’ compensation
2. Unemployment compensation
3. Workers’ compensation
4. Veterans’ benefits
5. Social Security
6. Public assistance
7. Aid to the disabled, the blind, and the elderly

Tools of the trade

This is a separate exemption. The following items have been considered tools of the trade in the state of South Carolina: implements, books, and other tools of the trade. These tools of the trade are exempt up to $1,500.

Wages: None.

Miscellaneous

The following miscellaneous benefits are exempt when filing for bankruptcy in South Carolina:

1. Alimony
2. Child support
3. Property of business partnerships

Wildcard: Any property from unused exemptions for homestead, burial, motor vehicle, personal property, jewelry, or tool of the trade exemptions, is limited to $5,000.

Federal Exemptions: Yes, debtors are allowed to take federal exemptions when filing for bankruptcy in South Carolina.

South Carolina Bankruptcy Court:

United States Bankruptcy Court, District of South Carolina