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What is a bankruptcy exemption?

One of the very first questions our clients ask us at The Cooper Law Firm is “Can I keep my property if I file bankruptcy?” In most cases, debtors who file bankruptcy keep most, if not all, of their property. This is possible because of the federal bankruptcy exemptions and South Carolina property exemptions that are available to debtors in bankruptcy. These bankruptcy exemptions work to protect the debtor’s property from creditors and the bankruptcy trustee. As experienced bankruptcy attorneys, we use every tool within our means to protect as much, and in most situations all, of your property when you file a bankruptcy case.

South Carolina has chosen to exempt itself from the bankruptcy exemptions allowed under federal law. Our legislature chose to enact laws that set forth state exemptions that each debtor may use when filing bankruptcy. In most cases, our state exemptions are much better than the federal exemptions and protect more of a debtor’s assets when filing bankruptcy. Debtors may exempt any property, both real estate and personal property, that falls into one of the exemption categories. This allows debtors to keep their property and still file for bankruptcy relief.

To determine if the bankruptcy exemption will protect your property, your bankruptcy attorney will review the applicable exemption statues compared to the amount of equity you have in the assets (the value of the asset less any secured loans equals the net equity). For example, married couples in the state of South Carolina can protect up to $112,275 of equity in their residence. Each debtor can have a car titled in his or her name with up to $5,625 of equity above any secured loans on the car.

There are many bankruptcy exemptions available to debtors in the bankruptcy District of South Carolina. You should seek the advice of an experienced bankruptcy attorney, such as the attorneys at The Cooper Law Firm, to determine what exemptions you are entitled to before filing a bankruptcy case. Our attorneys offer a free bankruptcy consultation. During that meeting, the attorney will review your assets and answer all of your questions regarding filing bankruptcy to keep your property. Contact The Cooper Law Firm today to schedule your free attorney consultation.

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