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If you are a Greenville resident facing financial challenges, it is only normal to have concerns about filing bankruptcy. However, there are some myths out there. One involves the belief that you will lose all property when you file for bankruptcy in Greenville, South Carolina. You can claim approved property exemptions during a South Carolina bankruptcy filing. These exemptions are permitted and are exempted from seizure during a South Carolina bankruptcy proceeding. You can maintain ownership or property without having to worry about it being seized and sold to pay toward your debts. You can maintain ownership of property claimed as exemptions during your bankruptcy.
Chapter 7 and Chapter 13 bankruptcies both allow exemptions. In Chapter 7, your exemptions will determine the amount of existing property you can keep. During a Chapter 13, your exemptions have an impact on your repayment plan that is set up through the court. You aren’t required to give up all your property when you file bankruptcy in Greenville. Specific assets can be kept safe by claiming South Carolina bankruptcy exemptions. Your Greenville bankruptcy will help you with the claiming of exemptions and help you make the appropriate decisions when choosing which property to exempt.
The exempted property might be specific in nature, such as a wedding ring or your car while some exemptions establish a set dollar amount that you can claim. Wildcard exemptions let you apply an exemption of a set amount of the property that you choose. If you choose to exempt an asset in accordance with the law, you don’t have to worry about it being sold toward your outstanding debts in Chapter 7 or impacting the amount of your monthly Chapter 13 payments. You should give choosing exemptions serious consideration with the help of your experienced Greenville bankruptcy attorney.
How Exemptions Impact Bankruptcy in South Carolina
The impact of exemptions is dependent on the kind of bankruptcy that you file in South Carolina district bankruptcy court. You can file Chapter 7 or Chapter 13. Chapter 7 is liquidation bankruptcy and involves the appointment of a trustee who will sell your assets to pay as much as possible to your creditors for outstanding debts. The trustee will not be allowed to sell any property that you claim as exempt. Exemptions allow you to protect some property during your bankruptcy proceeding. You can choose either federal exemptions or state exemptions when filing bankruptcy in many states. However, in South Carolina, you can only use the bankruptcy exemptions established by South Carolina law. If you file a bankruptcy in Greenville, you will use the most currently approved exemptions which were approved in 2016. The exemptions for South Carolina bankruptcy filers will change again in July 2018.
Homestead
Regardless of the kind of bankruptcy you are filing, you can claim a homestead exemption as high as $59,100. This is equity in your primary residence, such as a home, condo, villa, mobile home, or any real estate you use as your primary residence. A couple that is married and filing jointly can claim a double exemption, which totals $118,200 equity in their primary residence.
Personal Property
Different kinds of property can be claimed as personal property exemptions. This allows you to claim appliances, animals, books, clothing, furniture, or household goods worth up to $4,725. If you don’t claim a homestead exemption in your Greenville bankruptcy, you are allowed to claim a burial plot with a value up to $59,100. Or if you prefer, you have the ability to claim as much as $5,900 in liquid assets and cash if you don’t claim the homestead exemption.
You are also permitted to claim up to $1,175 worth of jewelry and all of your health aids. Trust funds set up for college investment programs can also be claimed as an exemption. You are also allowed to claim personal injury settlements or wrongful death settlements for any person who had depended on for financial support. For transportation purposes, you can claim up to $5,900 in equity in a truck, motorcycle, SUV, car, or van.
Pensions
You can also claim an exemption for several kinds of retirement accounts, particularly those that are tax-exempt, such as Simple IRAs, SEPs, money purchase and profit sharing plans, 403b plans, 401k plans, and other defined pensions, such as pensions that are for public employees, such as firemen, judges, attorneys, general assembly members, or police officers. Erisa-qualified benefits and your share of any pension plan fund are allowable as exemptions. The amount you can exempt from a Roth IRA or IRA gets adjusted every three years. Your Greenville bankruptcy attorney will know the current exemption amounts.
Public Benefits
You can file an exemption for various government benefits, such as workers’ compensation, unemployment compensation, veterans’ benefits, Social Security, local public assistance, general relief, and aid for the elderly, blind, or disabled.
Tools of the Trade
You can file an exemption for up to $1,775 worth of tools needed for your profession, such has books, implements, or tools.
Life Insurance
Exemptions are offered for some different insurance policies. Those that are exempt include accidental, disability, and illness insurance benefits; cash surrender values or the proceeds available for life insurance policies benefitting the dependents, including the spouse and children of the insured party just as long as the beneficiary is not listed as the estate, but certain exceptions are applicable; group life insurance proceeds up to South Carolina’s currently specified amount; any life insurance or annuity in which the contract holds the insurer exempt from creditors; life insurance benefits paid because of the insured’s death; fraternal benefit society benefits; an unmatured life insurance contract that is not a credit insurance policy; any loan value, interest, or the dividend value of a life insurance contract that has not matured.
Miscellaneous Exemptions
You can also claim alimony and child support or business partnership property as exemptions.
Wildcard Exemption
For any exemptions that were not used, you can claim as much as $5,900 for the property of your choice.
Greenville, South Carolina Bankruptcy Representation
South Carolina bankruptcy exemptions might change, but your Greenville bankruptcy lawyer will know the current exemptions and the allowable amounts. Your Greenville bankruptcy attorney is experienced in both Chapter 7 and Chapter 13 filings. Your attorney stays current on Greenville bankruptcy exemptions and can help you make the right choices regarding your filing. Your lawyer will help you choose the proper bankruptcy and the right exemptions for your situation.