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How to File for Bankruptcy in South Carolina
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People are struggling all across the country with the economy and starting to consider bankruptcy as a way to get a new start and work towards being debt-free. South Carolina as a whole is faring better than most states, but there are still 2.07 filings per capita (per 1,000 people). New financial tests are making it harder for people to fit under the eligibility requirements for filing bankruptcy. So how do you know if you are eligible for bankruptcy and if it is the right choice for you?
Finding a Bankruptcy Attorney
An experienced attorney can provide you with the financial and legal advice that you need to make a good decision about whether or not to file bankruptcy. If you decide to file, the attorney will also be able to represent you before the bankruptcy trustee and help maximize your asset exemptions. The right attorney can lessen the stress associated with the bankruptcy filing process and make sure you are well cared for in the end.
Bankruptcy Options
Everyone’s financial circumstances are unique to them and so there are a couple different ways to file bankruptcy:
- Those who have very few to no assets will probably benefit the most from a Chapter 7 bankruptcy, because it will allow you to get a completely clean slate with no more debt.
- Those who have significant assets may fit better under Chapter 13, since you will be able to retain much of your assets and establish a realistic payment plan for any existing debts.
South Carolina Exemptions
For those who are filing Chapter 7 of the bankruptcy code, it is vitally important that you know the exemptions you can claim. South Carolina gives you the option to file under the federal or state exemption lists, so it is important to consider which exemptions fit your needs better. Here is the state exemption list for South Carolina:
| Homestead | Real property, personal property used as homestead, or co-op, up to $50,000. |
| Personal Property | Motor vehicle up to $5,000; clothing, household goods, furnishings, appliances, books, musical instruments, animals and crops up to $4,000 total; jewelry up to $1,000; health aids; personal injury and wrongful death recoveries needed for support; IN LIEU OF Homestead: Burial plot up to $50,000; IN LIEU OF Homestead and burial plot cash and other liquid assets up to $5,000; college investment program trust fund. |
| Pensions | Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person; public employees; judges and solicitors; general assembly members; police officers; firefighters; ERISA-qualified benefits; Roth IRAs and IRAs needed for support. |
| Public Benefits | Unemployment compensation; Social Security; veterans' benefits; local public assistance; crime victims' compensation; workers' compensation; general relief; aid to blind, aged, and disabled. |
| Tools of the Trade | Tools, books, and implements of trade up to $1,500 total. |
| Insurance | Un-matured life insurance contract (but a credit insurance policy is not exempt); disability or illness benefits; life insurance proceeds from a policy for a person you depended upon which is needed for support; life insurance dividends, interest, loan, cash, or surrender value from a policy for a person you depended upon up to $4,000; fraternal benefit society benefits; accident and disability benefits; Group life insurance proceeds' cash value not to exceed $50,000; Life insurance proceeds for a spouse or child if purchased 2 years before filing for bankruptcy; life insurance proceeds if policy prohibits use to pay creditors. |
| Miscellaneous | Alimony and child support; business partnership property. |
Filing the Petition
With the type of bankruptcy decided upon, the exemptions lists weighed and any other applicable requirements for counselling satisfied, you can know file your bankruptcy petition with the court. The bankruptcy trustee will consider your case and determine if you are eligible for bankruptcy and set up a 341 meeting with your creditors. In the event that your petition is approved, you will be able to walk away debt-free (Chapter 7) or start on the road to become debt-free within the next three to five years (Chapter 13).
This article is provided for informational purposes only. If you need legal advice or representation,
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