Filing for bankruptcy can help you settle outstanding debts and give you a fresh start for your financial future. For most individuals, filing for Chapter 7 bankruptcy will be the easiest and best option. This type of bankruptcy uses your assets to settle outstanding debts. But that doesn’t mean that everything you own will be available to creditors. Here are the common exemptions your South Carolina bankruptcy lawyer wants you to be aware of so you can make the best decision for your needs.
The Common Exemptions You Need to Know
Under South Carolina law, certain pieces of property are exempt during Chapter 7 bankruptcy. This means they cannot be seized by the court and used to settle your debts. Here are the common exemptions:
- Your home: Individuals and couples filing for Chapter 7 bankruptcy can keep their homes provided the property is worth $67,100 for single homeowners and $134,000 for couples and families with more than one name on the house title.
- Health aids: You’re able to keep any health aids you use regularly regardless of their cost or value. This includes wheelchairs, wheelchair lifts, walking aids, sleep apnea devices, and more.
- Your vehicle: Depending on the total worth of your vehicle, you will be able to keep the vehicle without issue.
- Jewelry: You may be able to keep some of your jewelry as long as the value of the pieces you keep does not exceed a certain amount.
- Household furnishings: You’ll be allowed to keep certain furnishings with a combined value. You can use these furnishings to get settled in a new home if you need to move after filing bankruptcy.
- Cash assets: If you don’t own your home, you’re entitled to keep cash or liquid assets after you file.
- Other assets: You’re able to keep the money in your retirement funds, life insurance policies, college funds, child support, veterans’ benefits, unemployment compensation, and more. Your South Carolina bankruptcy lawyer will be able to tell you exactly which parts of your estate are exempt.
The Wildcard Exemption
South Carolina lets those filing for Chapter 7 claim a wildcard exemption for property that doesn’t have categories or property with values that exceed the maximum allowed in ordinary circumstances.
This exemption lets you claim an additional amount for single individuals and married couples toward your exempt property values. Making the decision to use the wildcard exemption can seem confusing, so consult with your South Carolina bankruptcy lawyer if you’re considering this exemption.
Is Chapter 7 Bankruptcy a Good Idea Even With Limited Exemptions?
Chapter 7 bankruptcy gives you a fresh start without forcing you to pay for the bulk of your debts out-of-pocket. Instead, your assets are used to settle your debt. This means that Chapter 7 bankruptcy can be a great option for individuals who don’t feel that they’ll be able to make payments on what they owe.
Schedule a Consultation Today
Filing for any type of bankruptcy is a long and complicated process. That’s why it’s important to work with an experienced South Carolina bankruptcy lawyer from the very beginning. Contact Lam Law Firm today to schedule a free consultation and to explore your options.