If you are considering bankruptcy in the state of South Carolina, learn what South Carolina bankruptcy laws affect your situation before you file.

Bankruptcy Exemptions

South Carolina bankruptcy laws allow debtors to choose a list of exemptions between the federal bankruptcy scheme and the state scheme.

• Up to $20,200 for a home
• Up to $10,775 for life insurance policy with a loan value
• Alimony and child support
• Life insurance payments if you depended on the deceased
• Lost earnings payments
• Up to $500 per item for a total of $10,775 for household goods
• Unmatured life insurance contract
• ERISA qualified benefits, retirement benefits and pensions
• Up to $1,350 for jewelry
• Up to $20,200 for tools of the trade
• Health aids
• Wrongful death, crime victim’s compensation, public assistance Social Security, unemployment, and veterans’ benefits payments
• A wild card exemption for $1,075 of any property and $10,125 of the unused homestead exemption
• Up to $3,225 for a vehicle
• Up to $20,200 for personal injury payments

Under South Carolina bankruptcy laws, those filing for bankruptcy may keep:

• Up to $50,000 for a residence, doubled for joint owners
• Up to $50,000 for a burial plot in lieu of homestead, doubled for joint owners
• Up to $1,000 for jewelry
• Up to $5,000 for a vehicle
• Up to $4,000 for instruments, crops, clothing, appliances, books, animals, household goods, and furniture
• Up to $5,000 in liquid assets and cash
• Life insurance proceeds
• Recoveries from personal injury claims or wrongful death cases
• Social security
• Accident and disability benefits
• ERISA qualified benefits
• Veterans benefits
• Public compensation programs
• Alimony and child support
• Up to $1,500 for tools of the trade
• Business partnership property
• Health aids

Remember that married couples may double their exemptions under the federal scheme.

Chapter 7 Bankruptcy Information

Chapter 7 bankruptcy is the traditional form of bankruptcy protection. Under Chapter 7, most debts are wiped out after bankruptcy is over. Some debts, like child support payments, cannot be erased under Chapter 7. Also, debtors must pass the means test, which compares their income to that of the rest of the state, before filing Chapter 7.

Chapter 13 Bankruptcy Information

Under Chapter 13 bankruptcy, you must create a repayment plan in lieu of having your debts wiped out. The courts will monitor the repayment of your debt as you work to pay back what you owe over a period of three to five years.