FRATERNAL BENEFITS EXEMPTIONS UNDER SOUTH CAROLINA LAW

South Carolina law exempts Fraternal Benefit Association Benefits from claims from creditors who may claim that you have to use them to pay the creditor money that is owed to them.   Just because you have a benefit that is claimed comes from an organization, there are many requirements that must be met before you should assume that the benefit being paid to you is exempt.

The requirements for the money to qualify as exempt are fairly complex.  I will attempt to list those requirements as follows:

REQUIREMENTS FOR AN ORGANIZATION TO QUALIFY AS A FRATERNAL ORGANIZATION WITH EXEMPT BENEFITS

  • The organization must be incorporated
  • The organization cannot be one that is owned by stockholders.
  • Operated as a not for profit entity.
  • The organization is operated solely for its members and its beneficiaries.
  • There is a lodge system with ritualistic form of work
  • A representative form of government
  • Its members receive benefits as set forth in its rules
  • The organization is a fraternal benefit society.
  • There is a supreme governing body and subordinate lodges
  • Each member has only one vote

THE FRATERNAL BENEFITS EXEMPTION AND BANKRUPTCY

If you file a bankruptcy under Chapter 7, Chapter 11 or Chapter 13 of the United States Bankruptcy Code, your benefit will still be protected from seizure by your creditors or a Trustee.  For this reason, you will not have to worry about losing this benefit if you file bankruptcy.

KNOW WHAT YOUR RIGHTS ARE WHEN DEALING WITH CREDITORS OR PLANNING YOUR FUTURE

Planning for your future is important.  You cannot make the plans you need to make without knowing all the facts and rules.  Contact me, Nathan Davis, to discuss the plans to make if you are experiencing financial difficulties.   Planning may help you escape your financial problems or lessen the financial impact of the financial problems.

 

 

 

About Nathan Davis, Esquire

Born in Charleston, South Carolina, Nathan Davis has been practicing law for many years. Mr. Davis has a wide variety of experiences having practiced domestic relations, criminal law, social security law having also practiced collection law in the past. This knowledge is helpful when someone needs to restart their financial life. The practice is now primarily bankruptcy and debtor representation work, but, Mr. Davis continues to also practice real estate law, trusts and estates and a general litigation practice. I believe that the most important part of representation is trying to leave you better off when the case is finished than when you started. Although I will do as my client directs, I will always tell you if I think that you are making a mistake. Bankruptcy is about a "fresh start". If you do not make changes in what you are doing, you will be doing what you are doing now in the future. There is no shame in bankruptcy or other steps that you may take to start your life over. Too often, people worry more about things than about themselves, their family or their future.
This entry was posted in EXEMPTIONS and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *