Library >>
What are exemptions?
What are exemptions?
“Exemptions” protect your property
Exemptions are critical to protect your assets during bankruptcy. State law dictates what kinds of property are safe from liquidation in Chapter 7. Everything you possess in Chapter 7 is lumped together into a an "estate" that we must show is below the exempt level. What isn't exempt under state law is liquidated to pay off your debts. To avoid Chapter 7 liquidation, a Chapter 13 pays the value of the property that is not exempt to your unsecured creditors over 3-5 years.
Since the amount your creditors would get if you filed Chapter 7 serves as the base amount and they must receive the same amount under your Chapter 13 plan (called as best interest test), exemptions are also employed in Chapter 13.
Within fifteen (15) days of filing for bankruptcy, you must assert your right to seek exemptions.
If you have lived in South Carolina for two years, you are required to use the following state exemptions.
| Category | Amount Exempt | Statute | Remarks |
|---|---|---|---|
| Residence | $67,100 | §15-41-30(1) | Must be used as residence, if titled in husband and wife, total $100,000 |
| Motor vehicle | $6,700 | §15-41-30(2) | One vehicle per person |
| Household Goods | $5,375 | §15-41-30(3) | Applies to household goods, must be necessary for day to day use. I.e. for a normal homeowner, a firearm would not be household goods. |
| Jewelry | $1,350 | §15-41-30(4) | |
| Cash | $6,700 | §15-41-30(5) | This is available ONLY IF the debtor has not claimed a residence exemption |
| Tools of the trade | $2,025 | §15-41-30(6) | Must be related to the debtor’s trade or profession. |
| Rifle, Shotgun, and/or Pistol | $3,000 | §15-41-30(A)(11)(b) |
