Best Bankruptcy Lawyers in South Carolina

About Bankruptcy Law in South Carolina, United States

Bankruptcy is a legal process designed to help individuals and businesses struggling with overwhelming debt. In South Carolina, bankruptcy laws are governed by federal statutes, primarily the United States Bankruptcy Code, although some state-specific rules also apply. Filing for bankruptcy can allow you to eliminate or reorganize your debts under the supervision of a bankruptcy court. It can offer relief from creditor harassment, stop foreclosures, and provide a path toward financial stability. South Carolina has three bankruptcy courts located in Columbia, Charleston, and Spartanburg, covering the entire state.

Why You May Need a Lawyer

While it is possible to file for bankruptcy on your own, hiring a bankruptcy lawyer is highly recommended in many situations. Here are a few common reasons you may need legal assistance:

• Complex Financial Situations: If you own a business, have multiple sources of income, or have significant assets, navigating bankruptcy can be complicated.
• Preventing Foreclosure or Repossession: Lawyers can help you file quickly and use bankruptcy to halt foreclosure or repossession of your home or car.
• Understanding Eligibility: An attorney can evaluate whether you qualify for Chapter 7 or Chapter 13 bankruptcy and which is best for your circumstances.
• Handling Creditor Challenges: Creditors sometimes challenge your right to discharge a debt. Legal representation ensures your rights are protected.
• Proper Documentation: Bankruptcy requires strict compliance with detailed paperwork, deadlines, and court procedures. Mistakes can lead to case dismissal.
• Maximizing Exemptions: Lawyers are familiar with South Carolina’s specific exemption laws and can help protect your property to the greatest extent possible.

Local Laws Overview

Bankruptcy in South Carolina is primarily governed by federal law. However, several state-specific rules and exemptions apply:

• State Exemptions: South Carolina has its own list of exemptions determining what property you can keep. These include exemptions for your home, vehicle, personal property, retirement accounts, and tools of the trade.
• No Homestead Exemption Using Federal Law: South Carolina requires residents to use the state exemption system, not the federal one, for protecting home equity.
• Median Income Test: Eligibility for Chapter 7 bankruptcy depends on passing a means test, comparing your income to median income in South Carolina.
• Mandatory Credit Counseling: The law requires credit counseling from a court-approved agency before filing, and financial education before discharge.
• Bankruptcy Courts: All bankruptcy cases are handled by the U.S. Bankruptcy Court for the District of South Carolina, which has strict filing and procedural rules.

Frequently Asked Questions

What types of bankruptcy are available in South Carolina?

The most common types are Chapter 7 (liquidation) and Chapter 13 (reorganization). Chapter 11 is generally used by businesses, and Chapter 12 is for family farmers and fishermen.

Will I lose my house or car if I file for bankruptcy?

Not necessarily. South Carolina allows certain exemptions that may let you keep your home and car if you meet specific requirements. An attorney can help you understand your options.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy typically stays on your credit report for 10 years. Chapter 13 usually remains for 7 years from the filing date.

Can all my debts be wiped out in bankruptcy?

Most unsecured debts, like credit card bills and medical bills, can be discharged. However, some debts such as student loans, child support, alimony, certain taxes, and criminal fines usually cannot be eliminated.

Do I need to go to court?

You will normally need to attend a meeting of creditors, called a 341 hearing, but you may not have to appear before a judge unless there are complications in your case.

What is the means test?

The means test determines eligibility for Chapter 7 bankruptcy. It compares your household income to the median for South Carolina and examines your financial resources.

How much does it cost to file bankruptcy in South Carolina?

Court filing fees for Chapter 7 are about 338 dollars and for Chapter 13 about 313 dollars. Attorney fees are separate and vary depending on the complexity of your case.

How long does the bankruptcy process take?

Chapter 7 cases typically take 4 to 6 months from filing to discharge. Chapter 13 involves a repayment plan and usually lasts 3 to 5 years.

Will bankruptcy stop foreclosure or repossession?

Filing for bankruptcy triggers an automatic stay, which temporarily halts most collection activities, including foreclosure and repossession. However, this relief is not always permanent.

Can I file for bankruptcy more than once?

Yes, but there are waiting periods between filings. For example, if you previously filed Chapter 7, you must wait 8 years before filing another Chapter 7 case.

Additional Resources

Several organizations and agencies can provide guidance and support:

• United States Bankruptcy Court for the District of South Carolina - Provides forms, filing instructions, and local rules.
• South Carolina Legal Services - Offers free legal aid for qualifying individuals facing bankruptcy and related issues.
• South Carolina Bar Lawyer Referral Service - Connects you with experienced bankruptcy attorneys in your area.
• Local credit counseling agencies approved by the U.S. Trustee Program for required pre-bankruptcy counseling.
• Consumer Financial Protection Bureau - Provides educational materials on managing debt and understanding bankruptcy.

Next Steps

If you are considering bankruptcy in South Carolina, start by gathering information about your debts, income, expenses, and assets. Seek a consultation with a qualified bankruptcy attorney who can assess your situation, explain your options, and guide you through the process. Complete the required credit counseling course from an approved provider before filing. Carefully review all paperwork before submission to avoid delays or case dismissal. Finally, follow your attorney’s advice and attend all required hearings or meetings to ensure your bankruptcy case proceeds smoothly and successfully.