South Carolina Bankruptcy Exemptions — What You Keep

Exemptions are the legal rules that determine what property you can keep when you file for bankruptcy. In South Carolina, exemptions are critically important because they define the line between protected and at-risk assets.

South Carolina requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific South Carolina exemption amounts below control what you can protect.

Homestead

Statutory cap applies (state exemption) — confirm the current figure with a lawyer. South Carolina has opted out of the federal bankruptcy exemptions — under § 15-41-35, no individual may exempt the property specified in 11 U.S.C. § 522(d) except as expressly permitted by state law. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.

Personal property

$4,000 aggregate statutory base, not per item (household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments held primarily for personal, family, or household use) — adjusted every even-numbered year for inflation, effective July 1, so check the currently indexed amount for the filing period. This covers household goods, furnishings, clothing, and everyday personal items.

Vehicle

$6,325 in equity. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.

Wages §37-5-104

No garnishment of earnings for consumer credit debts (creditor may not attach unpaid earnings by garnishment). This applies to wages already earned but not yet paid at the time of filing.

Wildcard

$5,000 statutory base (adjusted for inflation every even-numbered year — use the current indexed amount); covers any property, but only up to the unused portion of the exemptions in items (1) through (6). A wildcard exemption can be applied to any property not fully covered by other exemptions.

Retirement accounts

IRAs (including Roth IRAs and individual retirement annuities) and ERISA-qualified pension plans exempt; an IRA exemption may be reduced or eliminated by the amount of any fraudulent conveyance into the account. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).

Tools of trade

$1,500 statutory base in implements, professional books, or tools of the trade of the debtor or a dependent (adjusted every even-numbered year for inflation — use the current indexed amount). This protects the equipment you need to earn a living.

• In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
• In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.

• Is your home equity within the homestead limit, or does it exceed the cap?
• Do you have a vehicle loan that reduces your equity below the exemption?
• Are there assets that could be reclassified or converted to exempt form before filing?
• Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?