What money in my bank account is protected from creditors in South Carolina?
1. Federal Floor. Social Security, SSI, SSDI, VA, federal pensions, and OPM annuities are protected under 42 U.S.C. § 407 and 38 U.S.C. § 5301. The 31 C.F.R. Part 212 two-month rule provides automatic bank-level protection.
2. State Wild-Card / Cash Exemption. S.C. Code § 15-41-30(A)(5) provides up to $6,975 wild card for any property (including cash) representing unused homestead exemption — figure adjusted periodically. § 15-41-30(A)(2) homestead is $67,100; unused portion partially transfers.
3. Other Source-Specific Exemptions. § 43-5-190 public assistance; § 41-35-140 unemployment; § 42-9-360 workers' comp; child support, alimony; § 38-63-40 life insurance; veterans benefits. § 37-5-104 generally prohibits wage garnishment of consumer-credit debts by private judgment creditors (South Carolina is one of four states broadly prohibiting wage garnishment for consumer debts).
4. Retirement Accounts. § 15-41-30(A)(13) broadly exempts IRAs, 401(k)s, 403(b)s, Roth IRAs, ERISA plans; § 9-1-1680 protects state-employee retirement.
5. Joint Accounts. South Carolina does not recognize tenancy by entireties; joint accounts treated as joint tenancy with right of survivorship.
6. Claim of Exemption Process. S.C. R. Civ. P. 71 and § 15-41-25: garnishment served (rare given § 37-5-104 wage shield); debtor receives notice; debtor must file claim of exemption typically within 30 days; hearing held.
7. Burden of Proof. Debtor proves exempt source.
8. Penalty for Wrongful Garnishment. Court may award costs and fees; bad-faith garnishment can yield sanctions.
9. Bankruptcy Interplay. South Carolina opted out of federal exemptions; Chapter 7 reaches non-exempt cash; Chapter 13 retains.
This is legal information, not legal advice.
- Creditor seeks garnishment outside the § 37-5-104 exceptions
- Homestead has been fully used, leaving no wild card
- Tax-debt or domestic-support garnishment is involved
- S.C. Code § 15-41-30
- S.C. Code § 37-5-104
- 42 U.S.C. § 407
- 31 C.F.R. Part 212
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.