Q: Which homestead exemption should I use in SC for Chapter 7?

A: I do not know where the 40 months you are claiming are required are coming from. I have practiced bankruptcy law in SC for many years and have never seen such an issue. I assume you are trying to file by yourself without an attorney. I would advise that you talk with an attorney and hire him or her to advise you and to prepare the paperwork.

It appears that you have been in SC for the greater part of 180 days before filing, so you will have to file in SC. You will have to use the SC exemptions, as SC opted out of the Federal exemptions, and those are not available for use. You need to look at 15-41-30, which sets forth the amount of property that is exempt from attachment, levy, or sale. Most of the amounts are adjusted every three years and are much higher than the amount shown in the statute.

It may seem simple to file a bankruptcy case, but I assure you that there are lots of issues that you do not understand.

Anything that you own is subject to being taken, including clothes, household goods, guns, or sporting goods.

A: Since you are filing for Chapter 7 bankruptcy in South Carolina and want to exempt the equity in your primary residence, you would typically rely on South Carolina's homestead exemption. However, because you haven't owned the home for the 40 months required to meet the state’s full exemption rules, this exemption may not be available to you.

Since you previously lived in Nevada, but don’t qualify for their exemption either, your next option would be to look into federal bankruptcy exemptions. The federal homestead exemption, which is available in Chapter 7 cases, allows up to $27,900 for an individual in equity protection for a primary residence. This is significantly less than the full South Carolina exemption, but it could still provide you some relief.

It’s important to note that if the equity in your home is $60,000, and you have a mortgage, the actual equity might be less than that amount, which could influence your ability to exempt it. Since your only assets seem to be tied to the home, using the federal exemption may be your best option in this case, especially if the home equity falls within the limits for this exemption. If your situation changes or you’re unsure about the specifics, seeking guidance from someone who can review the details of your case would be helpful.