South Carolina General Assembly
104th Session, 1981-1982

Bill 120

                    Current Status

Bill Number:               120
Ratification Number:       90
Act Number                 53
Introducing Body:          Senate
Subject:                   Bankruptcy Act, property not exempt from
                           bankruptcy proceedings
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A53, R90, S120)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-41-425 SO AS TO PROVIDE THAT NO INDIVIDUAL MAY EXEMPT FROM THE PROPERTY OF THE ESTATE IN ANY BANKRUPTCY PROCEEDING THE PROPERTY SPECIFIED IN SUBSECTION (D) OF SECTION 522 OF THE BANKRUPTCY REFORM ACT (PUBLIC LAW 95-598) EXCEPT AS MAY OTHERWISE BE EXPRESSLY PERMITTED BY THE LAWS OF THIS STATE; BY ADDING SECTION 15-41-200 SO AS TO PRESCRIBE THE PROPERTY OF PERSONS DOMICILED IN THE STATE WHICH IS EXEMPT FROM COURT PROCESS; AND TO AMEND SECTION 15-41-920, RELATING TO OBLIGATIONS TO WHICH EXEMPTIONS DO NOT APPLY, SO AS TO PROVIDE THAT PUBLIC LAW 95-598 SHALL CONTROL SUCH APPLICATION OF EXEMPTIONS IN BANKRUPTCY PROCEEDINGS.

Be it enacted by the General Assembly of the State of South Carolina:

Property not exempt from bankruptcy proceedings

SECTION 1. Chapter 41 of Title 15 of the 1976 Code is amended by adding:

"Section 15-41-425. No individual may exempt from the property of the estate in any bankruptcy proceeding the property specified in subsection (d) of Section 522 of the Bankruptcy Reform Act (Public Law 95-598) except as may otherwise be expressly permitted by this chapter or by other provisions of law of this State.

Property exempt from attachment, levy and sale

SECTION 2. Chapter 41 of Title 15 of the 1976 Code is amended by adding:

"Section 15-41-200. The following real and personal property of a debtor domiciled in this State shall be exempt from attachment, levy and sale under any mesne or final process issued by any court or bankruptcy proceeding:

(1) The debtor's aggregate interest, not to exceed five thousand dollars in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor. Provided, however! that the aggregate value of multiple homestead exemptions allowable with respect to a single living unit may not exceed ten thousand dollars. If there are multiple owners of such a living unit exempt as a homestead, the value of the exemption of each individual owner may not exceed his fractional portion of ten thousand dollars.

(2) The debtor's interest, not to exceed one thousand two hundred dollars in value, in one motor vehicle.

(3) The debtor's interest, not to exceed two thousand five hundred dollars in aggregate value in household furnishings, household goods, wearing apparel, appliances, books, animals, crops or musical instruments, that are held primarily for the personal, family or household use of the debtor or a dependent of the debtor.

(4) The debtor's aggregate interest, not to exceed five hundred dollars in value, in jewelry held primarily for the personal, family or household use of the debtor or a dependent of the debtor.

(5) The debtor's aggregate interest in cash and other liquid assets to the extent of a value not exceeding one thousand dollars; provided, however, that this exemption is available only to an individual who does not claim a homestead exemption. The term 'liquid assets' includes deposits, securities, notes, drafts, unpaid earnings not otherwise exempt, accrued vacation pay, refunds, prepayments and other receivables.

(6) The debtor's aggregate interest, not to exceed seven hundred fifty dollars in value, in any implements, professional books, or tools of the trade of the debtor or the trade of a dependent of the debtor.

(7) Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract.

(8) The debtor's aggregate interest, not to exceed in value four thousand dollars less any amount of property of the estate transferred in the manner specified in Section 542(d) of the Bankruptcy Code of 1978, in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.

(9) Professionally prescribed health aids for the debtor or a dependent of the debtor.

(10) The debtor's right to receive:

(A) a social-security benefit, unemployment compensation, or a local public assistance benefit;

(B) a veteran's benefit;

(C) a disability, illness or unemployment benefit;

(D) alimony, support or separate maintenance;

(E) a payment under a stock bonus, pension, profit sharing, annuity or similar plan or contract on account of illness, disability, death, age or length of service, unless

(i) such plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor's rights under such plan or contract arose;

(ii) such payment is on account of age or length of service; and

(iii) such plan or contract does not qualify under Section 401(a) 403(a), 403(b), 408 or 409 of the Internal Revenue Code of 1954 (26 U.S.C. 401(a), 403(a), 403(b), 408 or 409).

(11) The debtor's right to receive or property that is traceable to :

(A) an award under a crime victim's reparation law;

(B) a payment on account of the bodily injury of the debtor or of the wrongful death or bodily injury of another individual of whom the debtor was or is a dependent;

(C) a payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of such individual's death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor."

Property not subject to exemptions

SECTION 3. Section 15-41-420 of the 1976 Code is amended to read:

"Section 15-41-420. The exemptions contained in this chapter shall not extend to an attachment, levy or sale in any mesne or final process to enforce the payment of takes or a valid security agreement, provided, however, that in bankruptcy proceedings, provisions of the Bankruptcy Reform Act of 1978 (Public Law 95-598) shall control."

Provisions of this act to prevail

SECTION 4. In the event any provisions of this act are deemed to be in conflict with existing law relating to the same matters, the provisions of this act shall prevail.

Time effective

SECTION 5. This act shall take effect upon approval by the Governor.