South Carolina Bankruptcy Guide

Complete guide to filing bankruptcy in South Carolina, including current median income requirements, South Carolina's homestead exemption up to $68,525, choice between state and federal exemptions, bankruptcy court information, and how to find qualified bankruptcy attorneys throughout South Carolina.

South Carolina Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in South Carolina, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$52,154	$4,346
2 people	$65,722	$5,477
3 people	$71,303	$5,942
4 people	$82,875	$6,906
5 people	$91,875	$7,656
6 people	$100,875	$8,406

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your South Carolina Eligibility

South Carolina Bankruptcy Exemptions

South Carolina allows bankruptcy filers to choose between South Carolina state exemptions and the federal bankruptcy exemptions. This choice can significantly impact which assets you can protect, so it's important to carefully compare both sets of exemptions with a South Carolina bankruptcy attorney.

South Carolina Homestead Exemption

Up to $68,525.

South Carolina's state homestead exemption protects up to $68,525 of equity in your primary residence. This is a generous homestead exemption that provides good protection for South Carolina homeowners. The exemption applies to real property including houses, condominiums, mobile homes, and co-ops that serve as your principal residence.

The property must be your principal residence at the time of filing bankruptcy. South Carolina's homestead exemption is per property, not per person, so married couples filing jointly still receive $68,525 total protection (not $137,050).

Federal Exemption Alternative: South Carolina filers can instead choose the federal homestead exemption of $27,900 ($55,800 for married couples filing jointly). For most South Carolina homeowners, the state exemption of $68,525 is significantly better than the federal alternative.

South Carolina Vehicle Exemption

Up to $6,425.

South Carolina allows you to protect up to $6,425 of equity in one motor vehicle under state exemptions. This is one of the more generous vehicle exemptions in the country.

Federal Exemption Alternative: The federal vehicle exemption is $4,450, which is lower than South Carolina's $6,425 state exemption. For vehicle protection, South Carolina state exemptions are significantly better.

South Carolina State Exemptions

South Carolina bankruptcy exemptions include:

• Homestead: $68,525
• Vehicle: $6,425
• Household Goods and Furnishings: $5,000
• Clothing and Other Personal Property: $5,000
• Jewelry: $1,200
• Burial Plot: Unlimited
• Tools of Trade: $10,000
• Wildcard: $6,425 (can be applied to any property, or added to homestead up to $13,100 total)
• Wages: Certain percentages of earned wages

Federal Exemptions (Alternative Choice)

South Carolina filers may choose federal exemptions instead:

• Homestead: $27,900 ($55,800 for married couples)
• Vehicle: $4,450
• Household Goods: $700 per item, up to $14,875 total
• Jewelry: $1,875
• Tools of Trade: $2,800
• Wildcard: $1,475 general + up to $13,950 of unused homestead (total $15,425)

Which Exemptions Should You Choose?

Choose South Carolina state exemptions if:

• You own a home with ANY equity (South Carolina $68,525 vs federal $27,900/$55,800)
• You have more than $4,450 vehicle equity (South Carolina allows $6,425)
• You have valuable tools of trade (South Carolina $10,000 vs federal $2,800)
• You want to add wildcard to your homestead (can get up to $81,625 total homestead protection)

Choose federal exemptions if:

• You're married filing jointly with home equity between $55,800 and $68,525
• You have little or no home equity and want the larger federal wildcard ($15,425)
• You have significant household goods (federal $14,875 vs South Carolina $5,000)

In South Carolina, most homeowners choose state exemptions because of the superior $68,525 homestead exemption.

Other Protected Assets

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government retirement benefits under federal law
• Public Benefits: Social Security, unemployment, workers' compensation, veteran's benefits, disability benefits, public assistance
• Life Insurance: Unmatured life insurance policies; life insurance proceeds up to $50,000
• Health Aids: All health aids
• Education Savings: South Carolina 529 education savings plan (Future Scholar)
• Personal Injury Awards: Personal injury recoveries needed for support
• Wrongful Death Awards: Wrongful death recoveries
• Alimony and Child Support: Alimony and child support needed for support

Filing Bankruptcy in South Carolina

Chapter 7 Bankruptcy in South Carolina

Chapter 7 bankruptcy is commonly filed throughout South Carolina. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in South Carolina, you must pass the means test by having income below the South Carolina median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

South Carolina's choice between state and federal exemptions gives you flexibility. Most South Carolina homeowners benefit from choosing state exemptions due to the $68,525 homestead and $6,425 vehicle exemption. Work with a South Carolina bankruptcy attorney to determine which exemption set protects your assets better.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in South Carolina

Chapter 13 bankruptcy allows South Carolina residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly beneficial if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is especially useful in South Carolina if your income is too high to qualify for Chapter 7, if you have non-exempt assets you want to protect (particularly if you have more than $68,525 in home equity), or if you have priority debts like recent taxes or past-due child support. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Court in South Carolina

South Carolina has one federal bankruptcy court district:

District of South Carolina

Main Courthouses: Columbia, Charleston, Spartanburg

The U.S. Bankruptcy Court for the District of South Carolina covers the entire state. The court has multiple divisions to serve South Carolina's population:

Columbia Division: Serves the Midlands region including Columbia, the state capital, and surrounding counties. This division handles cases from central South Carolina.

Charleston Division: Serves the Lowcountry and coastal region including Charleston, North Charleston, Mount Pleasant, Summerville, Hilton Head, Beaufort, and the coastal areas. This division handles a significant volume of cases from the Charleston metropolitan area.

Spartanburg Division: Serves the Upstate region including Greenville, Spartanburg, Anderson, Rock Hill, and the northwestern portion of the state. This division covers the populous Upstate region.

You must file in the district where you have lived for the greater part of the 180 days before filing. Since South Carolina has only one district, all South Carolina residents file in the District of South Carolina, but your case will be assigned to the appropriate division based on your county of residence.

South Carolina Residency Requirements

To use South Carolina bankruptcy exemptions (either state or federal), you must have been domiciled (legally residing) in South Carolina for at least 730 days (2 years) before filing. If you've lived in South Carolina for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

South Carolina allows you to choose between state and federal exemptions once you meet the residency requirement. This choice is made at the time of filing and cannot be changed later, so careful analysis with an attorney is important.

Find a South Carolina Bankruptcy Attorney

Most South Carolina bankruptcy attorneys offer free initial consultations. Given the complexity of bankruptcy law and South Carolina's choice between state and federal exemptions, consulting with an experienced South Carolina bankruptcy attorney is highly recommended.

What a South Carolina Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Compare South Carolina state vs. federal exemptions to maximize asset protection
• Calculate whether you qualify for Chapter 7 using the South Carolina means test
• Navigate South Carolina-specific bankruptcy procedures and local court rules
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in South Carolina

Chapter 7 bankruptcy attorney fees in South Carolina vary by location:

• Charleston, Hilton Head area: $1,100 to $1,600 plus $338 filing fee
• Greenville, Spartanburg area: $1,000 to $1,500 plus $338 filing fee
• Columbia area: $1,000 to $1,500 plus $338 filing fee
• Myrtle Beach, Florence: $950 to $1,450 plus $338 filing fee
• Other South Carolina cities and rural areas: $850 to $1,350 plus $338 filing fee

Chapter 13 attorney fees typically range from $2,800 to $4,000 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Many South Carolina attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

South Carolina-Specific Bankruptcy FAQs

Can I keep my house in South Carolina bankruptcy?

Most South Carolina homeowners can keep their homes. South Carolina's $68,525 homestead exemption protects homes with equity up to this amount. If you're married filing jointly, consider that the state exemption is $68,525 total, while federal exemptions would give you $55,800. You can also add South Carolina's $6,425 wildcard to the homestead for up to $75,000 total protection. If equity exceeds exemptions, you may need Chapter 13.

Can I keep my car in South Carolina bankruptcy?

Yes, in most cases. South Carolina allows you to exempt up to $6,425 of equity in one motor vehicle under state exemptions, which is higher than the federal $4,450. Most South Carolina residents with car loans have equity below this amount and can keep their vehicles by continuing to make payments through a reaffirmation agreement.

Should I choose state or federal exemptions in South Carolina?

Most South Carolina homeowners should choose state exemptions because the $68,525 homestead is far better than federal $27,900 (single) or $55,800 (married). The $6,425 vehicle exemption also beats federal $4,450. State tools of trade ($10,000) is better than federal ($2,800). Only choose federal if you're a renter with minimal assets who wants the larger federal wildcard ($15,425), or if you have significant household goods. An attorney can analyze your situation.

How does bankruptcy affect military servicemembers in South Carolina?

South Carolina has significant military population due to bases like Fort Jackson, Charleston Air Force Base, Marine Corps Recruit Depot Parris Island, and Shaw Air Force Base. Military servicemembers can file bankruptcy, and military retirement pay is protected. The Servicemembers Civil Relief Act (SCRA) provides additional protections during active duty. South Carolina bankruptcy attorneys experienced with military issues can help navigate special considerations.

Can I protect my beach house or vacation property in South Carolina?

Only if it's your primary residence. South Carolina's homestead exemption applies only to your principal residence. A beach house, lake house, or vacation property that is not your primary residence does not qualify for the homestead exemption. The trustee could sell non-exempt vacation property in Chapter 7. If you have significant equity in a second home, you may need Chapter 13 or other strategies.

How does bankruptcy affect my boat in South Carolina?

Boats are personal property that can be protected using South Carolina's personal property exemption ($5,000) or wildcard exemption ($6,425). If the boat equity exceeds available exemptions after subtracting loans, you may need to surrender it, pay the trustee for non-exempt value, or file Chapter 13. South Carolina's coastal areas have many boat owners—consult a local bankruptcy attorney about protecting watercraft.

Related Resources