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Filing Chapter 7 Bankruptcy in South Carolina (2026)

Reviewed by DocDraft Legal Team · South Carolina · Last updated August 18, 2026

Chapter 7 bankruptcy is federal law, but the property you keep is set by South Carolina. South Carolina is an opt-out state: under S.C. Code 15-41-35 you must use South Carolina's exemptions and cannot choose the federal 11 U.S.C. 522(d) list. This page explains the South Carolina homestead exemption under S.C. Code 15-41-30, the motor vehicle and wildcard figures, the means-test median income, South Carolina's unusually strong protection against wage garnishment for ordinary consumer debt, and the U.S. Bankruptcy Court for the District of South Carolina where residents file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or alimony.

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Does South Carolina use state or federal bankruptcy exemptions?

South Carolina is an opt-out state. Under S.C. Code 15-41-35, no debtor may claim the federal 11 U.S.C. 522(d) exemptions in a South Carolina bankruptcy. You must use the South Carolina exemption set in S.C. Code 15-41-30. Unlike a handful of choice states, you cannot elect the federal list here.

Can I keep my house if I file Chapter 7 in South Carolina?

Often yes. Under S.C. Code 15-41-30(A)(1), South Carolina's homestead exemption protects about $80,125 of equity in the real or personal property you use as a residence, a figure adjusted every two years for inflation. If your home equity fits within that amount, Chapter 7 generally lets you keep the house.

Can I keep my car if I file Chapter 7 in South Carolina?

Usually yes if your equity is modest. Under S.C. Code 15-41-30(A)(2), South Carolina exempts about $8,000 of equity in one motor vehicle, a figure adjusted biennially for inflation. If your car equity is at or below that amount, the vehicle is protected. Equity above the figure may be reachable by the trustee.

What is the income limit to file Chapter 7 in South Carolina?

For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for South Carolina are $64,808 for one earner, $83,761 for two, $95,672 for three, and $116,314 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.

South Carolina's Opt-Out Rule, the 15-41-30 Homestead, and Strong Wage Protection

South Carolina is a bankruptcy opt-out state. Under S.C. Code 15-41-35, a debtor filing in South Carolina may not claim the property listed in 11 U.S.C. 522(d), so you must use the South Carolina exemptions in S.C. Code 15-41-30 rather than the federal set. The headline figures, which the statute adjusts every even-numbered year on July 1 for the Southeastern Consumer Price Index, protect roughly $80,125 of homestead equity under 15-41-30(A)(1), about $8,000 of equity in one motor vehicle under 15-41-30(A)(2), and a wildcard of about $8,000 in any property when you do not use the homestead, under 15-41-30(A)(7). South Carolina is also distinctive for consumer debtors because state law strongly limits wage garnishment: ordinary consumer creditors generally cannot garnish South Carolina wages at all, and garnishment is largely confined to obligations like child support, taxes, and federal student loans. Everyone in the state files in the same court, the U.S. Bankruptcy Court for the District of South Carolina, which is a single statewide district.

Relevant Laws

South Carolina Property Exemptions (S.C. Code 15-41-30)

Lists the property a South Carolina debtor may exempt, including the homestead of about $80,125, one motor vehicle of about $8,000, household goods of about $6,400, tools of the trade of about $2,400, and a wildcard of about $8,000 of unused homestead. Subsection (B) adjusts each figure every even-numbered year on July 1 for the Southeastern Consumer Price Index.

South Carolina Opt-Out from Federal Exemptions (S.C. Code 15-41-35)

South Carolina's opt-out statute. It provides that no individual may exempt from the bankruptcy estate the property specified in 11 U.S.C. 522(d), except as expressly permitted by Chapter 41. This forces South Carolina debtors onto the state exemption set and bars the federal list.

South Carolina Motor Vehicle and Wildcard Exemptions (S.C. Code 15-41-30(A)(2), (A)(7))

Within the same statute, subsection (A)(2) exempts about $8,000 of equity in one motor vehicle and subsection (A)(7) provides a wildcard of about $8,000 in any property, available only to the extent the debtor does not use the homestead exemption. Both figures are adjusted biennially for inflation.

Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)

The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which South Carolina has done under 15-41-35, and section 707(b) sets the means test measured against state median income.

Regional Variances

South Carolina Chapter 7 Exemption Table

Homestead

S.C. Code 15-41-30(A)(1): about $80,125 of equity in real or personal property used as a residence, cooperative, or burial plot, effective July 1, 2026, adjusted every even-numbered year for the Southeastern Consumer Price Index. Qualifying co-owners may each claim the exemption, subject to a statutory per-living-unit cap.

Motor vehicle

S.C. Code 15-41-30(A)(2): about $8,000 of equity in one motor vehicle, effective July 1, 2026. Equity above the figure may be reachable by the trustee. Like the other figures, it is adjusted biennially for inflation.

Wildcard

S.C. Code 15-41-30(A)(7): about $8,000 in any property, available only to the extent the debtor does not use the homestead exemption. Renters and low-equity filers use this to protect cash, a bank balance, or other assets no specific category covers.

Personal property

S.C. Code 15-41-30(A)(3) exempts about $6,400 in household furnishings, goods, clothing, appliances, books, animals, crops, and musical instruments held for personal, family, or household use, plus about $1,000 in jewelry under (A)(4). These figures are adjusted biennially for inflation.

Wages

South Carolina does not authorize wage garnishment for ordinary consumer debt, so most credit card, medical, and other consumer creditors cannot garnish South Carolina wages at all. Garnishment is largely limited to child support, unpaid taxes, and federal student loans. This state-distinct protection is separate from the bankruptcy exemptions.

Retirement and tools

S.C. Code 15-41-30(A)(12) exempts tax-qualified retirement accounts, including IRAs and similar plans, generally to the extent reasonably necessary for the support of the debtor and dependents. Tools of the trade under (A)(6) are exempt up to about $2,400. ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law.

Suggested Compliance Checklist

Confirm the current South Carolina means-test median income

Before you file days after starting

Check your household size against the U.S. Trustee South Carolina median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $64,808 for one, $83,761 for two, $95,672 for three, and $116,314 for four, adding $11,100 per additional person.

Verify the current South Carolina exemption amounts

Before preparing your schedules days after starting

The S.C. Code 15-41-30 dollar figures adjust every even-numbered year on July 1 for the Southeastern Consumer Price Index. Confirm the amounts effective on your filing date with the South Carolina Department of Consumer Affairs before you rely on the homestead, motor vehicle, wildcard, and personal property figures in your schedules.

Complete the pre-filing credit counseling course

Within 180 days before filing days after starting

Take an approved credit counseling course from a provider authorized for the District of South Carolina and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.

Prepare and file your petition and schedules

Filing day days after starting

File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of South Carolina, in the division covering where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and any garnishment.

Attend the 341 meeting and finish the debtor education course

Before discharge days after starting

Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.

Frequently Asked Questions

Under S.C. Code 15-41-30(A)(1), South Carolina's homestead exemption protects about $80,125 of equity in real or personal property you use as a residence, effective July 1, 2026. The statute adjusts this figure every even-numbered year for the Southeastern Consumer Price Index. Co-owners who each qualify may each claim the exemption, subject to a statutory cap per living unit.

Under S.C. Code 15-41-30(A)(7), South Carolina gives a wildcard of about $8,000 in any property, but only to the extent you do not use the homestead exemption. This lets a renter or a filer with little home equity protect cash, a bank balance, or other assets that no specific exemption category otherwise covers, up to the unused homestead amount.

You file in the U.S. Bankruptcy Court for the District of South Carolina, a single statewide federal district that serves the entire state from divisional offices. You file in the division covering where you have lived for most of the prior 180 days. Federal bankruptcy is handled by this court, not by South Carolina state courts.

No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or alimony, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.

For ordinary consumer debt, generally no. South Carolina law strongly limits wage garnishment, so most credit card, medical, and other consumer creditors cannot garnish South Carolina wages at all. Garnishment is largely confined to obligations like child support, unpaid taxes, and federal student loans. Filing Chapter 7 adds the automatic stay, which pauses collection while your case proceeds.

Other South Carolina guides

Asset Protection Planning in South Carolina (2026)

Dealing With Debt Collectors in South Carolina (2026)

How to Break a Lease in South Carolina Legally (2026)

How to Dispute a Bill in South Carolina (2026)

How to File a Small Claims Lawsuit in South Carolina (2026)

How to File for Divorce in South Carolina (2026)

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