South Carolina Bankruptcy Exemptions

Buying and selling exempt property off the South Carolina bankruptcy exemption list

The date the petition is filed in chapter 7 determines the point of ownership and appraised value for South Carolina exemption status. Property sold for cash the day before is considered cash, and property acquired the day after is not considered property of the estate. However, all debtors are held to a strict standard for disclosing all property, and upon inquiry, explaining the source and disposition of all assets during the one before filing. Also, an unexpected acquisition of property after a case is filed will undoubtedly raise suspicion. While a case is pending, buying and selling assets is seldom a wise choice unless granted specific authority by the court.

Buying and selling South Carolina exempt property

Few commercial sellers, lenders, banks or other providers of consumer goods or services knowingly engage in significant transactions with debtors while a case is pending. Subsequent notes and liabilities may be later added for discharge, and sellers may be required to return proceeds if claimed by a trustee. For these reasons, debtors in bankruptcy pose a significant risk (in the opinion of sellers and lenders) at all times during the pendency of a case. However, after the final order when the case is closed, debtors may buy, sell, open personal checking accounts, and find consumer transactions relatively easy as before filing.