In “Are Inherited IRAs exempt”, I went out on a limb and predicted that the U.S. Supreme Court would rule–as did the 5th Circuit Court of Appeals–that inherited IRAs were exempt under section 522 of the Bankruptcy Code. I promised an update when the decision came out, which happened several months ago, and it’s time…
Our South Carolina exemptions are adjusted for cost of living every other July 1. Exemptions in property allow the property to be protected from a judgment creditor or bankruptcy trustee up to the amount of the exemption. Think of it as a blanket. The blanket covers so much–the bigger the blanket, the more the coverage.…
IRAs enjoy significant protection from creditors and the bankruptcy trustee. In fact, there are multiple statutory protections. Here in South Carolina–we’re an “opt out” state, so if you file bankruptcy here, you must claim South Carolina exemptions–we have at least three different IRA exemptions, and they all protect IRAs. But that wasn’t always the case. …
Written by Charleston Bankruptcy Lawyer, Russell A. DeMott Determining what the value of your home is when you file your bankruptcy is a difficult, but important, task. Years ago… Years ago, tax assessment values (called various things in various states–here in South Carolina called the “tax appraisal”) tended to be low. Taxing authorities generally could…
Written by Charleston Bankruptcy Lawyer, Russell A. DeMott When people starting thinking of bankruptcy, they wonder about whether their property will be taken. “Will they take my house? Will they take my car?” they ask. That’s where exemptions come in. What are exemptions? Exemptions are laws which allow a debtor to protect a certain amount…
Written by Charleston Bankruptcy Lawyer, Russell A. DeMott Senior citizens have problems with debt just like everyone else. Over the last couple of weeks, I’ve met with two sweet older ladies to discuss their financial problems. First things first The first thing I do when dealing with an older client is to determine what assets…
Written by Charleston Bankruptcy Lawyer, Russell A. DeMott “The bankruptcy trustee will sell all your jewelry” isn’t an accurate statement about what happens when you file bankruptcy. Over the last few months, I’ve had a couple of clients with jewelry they valued at fairly high amounts or were uncertain about. Because of this, I referred…
Written by Charleston Bankruptcy Lawyer, Russell A. DeMott What are “South Carolina bankruptcy laws?” Technically speaking, there really is no such thing as South Carolina bankruptcy law. But this doesn’t mean South Carolina law won’t affect your case. Our bankruptcy law is found in Title 11 of the United States Code and is…
Written by Charleston Bankruptcy Lawyer, Russell A. DeMott In a recent decision South Carolina Bankruptcy Judge John E. Waites upheld a debtor’s claim of exemption in his cash value life insurance under South Carolina Code § 38-63-40(A), which was enacted in 1993. Judge Waites ruled that the statute protects a policy owner’s cash surrender value…
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