Chapter 7 bankruptcy in South Carolina can discharge most of your unsecured debt in roughly three to four months, provided your income falls under a federal threshold and your property fits within the state’s exemption limits. For cases filed between November 1, 2025, and March 31, 2026, a single filer qualifies automatically with income under $63,146, and the state’s homestead exemption protects up to $76,125 of equity in your home.
Do You Qualify? The Means Test
The means test decides whether you can wipe debts out in Chapter 7 or must repay them through Chapter 13. It runs in two stages, and most consumer filers in South Carolina clear it at the first stage.1United States Department of Justice. Means Testing
Stage One: Income Against the State Median
The court takes your gross income from the six full calendar months before you file, averages it, and compares the result to South Carolina’s median for a household of your size. For cases filed between November 1, 2025, and March 31, 2026, the medians are:2United States Department of Justice. Median Family Income Table
- One earner: $63,146
- Two people: $81,614
- Three people: $93,219
- Four people: $113,332
- Each additional person: add $11,100
If you come in under the applicable number, you pass and can proceed.
Stage Two: The Disposable-Income Calculation
Above-median filers move to a line-by-line expense analysis. The court subtracts standardized living expenses set by IRS guidelines for your county, along with actual payments on secured debts like your mortgage and car loan.3United States Courts. Official Form 122A-2 Chapter 7 Means Test Calculation What remains is your monthly disposable income, multiplied by 60. If the 60-month figure is under $10,275, or under 25 percent of your unsecured debt (whichever is greater), you can still file Chapter 7. If it reaches $17,150 or more, a presumption of abuse arises and the court will likely push you to Chapter 13 or dismiss the case. You can rebut that presumption only by showing special circumstances, such as a serious medical condition or a military call to active duty.4Office of the Law Revision Counsel. 11 USC 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13
What You Keep: South Carolina Exemptions
Chapter 7 is a liquidation proceeding, meaning a trustee can sell assets that aren’t protected and pay the proceeds to creditors.5United States Courts. Chapter 7 Bankruptcy Basics6Office of the Law Revision Counsel. 11 USC 522 – Exemptions7South Carolina Legislature. South Carolina Code Title 15 Chapter 41 – Homestead and Other Exemptions South Carolina sets its own exemption amounts, adjusted for inflation every two years on July 1. The figures below reflect the July 1, 2024 adjustment:8United States Bankruptcy Court District of South Carolina. Reminder: South Carolina Exemption Amount Adjustments
- Homestead: up to $76,125 in equity in your primary home, co-op unit, or burial plot. A married couple filing jointly in a shared residence can protect up to $152,250.
- Motor vehicle: up to $7,600 in equity in one vehicle.
- Household goods and clothing: up to $6,100 combined.
- Jewelry: up to $1,525.
- Cash and liquid assets: up to $7,600, but only if you do not claim the homestead exemption.
- Tools of the trade: up to $2,275.
- Wildcard: up to $7,600 applied to any property you choose, drawn from the unused portion of the categories above.
- Firearms: up to $3,000 covering any combination of up to three rifles, shotguns, or pistols.
Everything here runs on equity, which is the asset’s current market value minus what you owe on it. A car worth $15,000 with an $11,000 loan has $4,000 of equity and fits comfortably inside the $7,600 vehicle cap. When equity exceeds the exemption, the trustee can sell the asset, pay you the exempt amount, and distribute the balance. Most Chapter 7 filings in practice are “no-asset” cases, where everything the filer owns fits within these limits.
What It Costs to File
The court filing fee for Chapter 7 is $338 ($245 filing fee, $78 administrative fee, and a $15 trustee surcharge). It’s due at filing, but there are two alternatives if you can’t pay in one lump. You can request an installment plan, typically four payments spread over 120 days. If your household income is under 150 percent of the federal poverty guidelines, you can ask the court to waive the fee entirely.9Office of the Law Revision Counsel. 28 USC 1930 – Bankruptcy Fees
You’ll also pay for two mandatory courses, usually $20 to $50 each: credit counseling before filing and debtor education after. Attorney fees for a straightforward Chapter 7 in South Carolina generally run $1,000 to $3,000, depending on complexity and location. Filing without an attorney is legal, but the means test calculations and exemption schedules are where errors happen, and a missed exemption can cost an asset worth more than the fee.
Debts a Chapter 7 Won’t Erase
Chapter 7 wipes out credit card balances, medical bills, personal loans, and most other unsecured debt. Several categories are off-limits no matter what:10Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge
- Child support and alimony.
- Most income tax debts, including recent taxes and any from fraudulent or unfiled returns.
- Student loans, unless you win a separate proceeding showing undue hardship, which is a high bar.
- Government fines and penalties, including criminal restitution.
- Debts arising from personal injury or wrongful death caused by drunk driving.
- Debts you left off your petition, if the creditor didn’t learn about the case.
A separate group of debts survives only if a creditor objects during the case. If no one challenges them, they discharge like any other. This group includes debts obtained through fraud or false financial statements, debts from intentional harm, and luxury purchases over $800 to a single creditor within 90 days before filing.10Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge
Keeping a Financed Car or Home
Discharge erases your personal liability on a debt, but it does not remove a creditor’s lien on collateral. If you want to keep a financed car or house, you generally choose between two routes.
A reaffirmation agreement is a new contract to keep paying as though you never filed. The lender agrees not to repossess as long as you stay current, and you become personally liable again, including for any deficiency if you later default. Federal law requires specific disclosures before you sign, and you can rescind within 60 days of filing it with the court or before discharge is entered, whichever is later.11Office of the Law Revision Counsel. 11 USC 524 – Effect of Discharge If you have an attorney, they must certify that the agreement won’t cause undue hardship. Without an attorney, the court holds a hearing to review whether the deal is in your interest.12United States Bankruptcy Court Southern District of Florida. Reaffirmation Agreement
Redemption is the alternative for personal property such as a vehicle. You pay the lender the collateral’s current fair market value in one lump sum and own it outright. This can be a strong move when you owe much more than the car is worth. The obvious obstacle is finding the cash; some specialty lenders offer redemption financing at higher rates.
How the Case Moves From Filing to Discharge
Before you file, federal law requires completion of a credit counseling course from a U.S. Trustee-approved provider, taken within 180 days of filing. The certificate goes in with your petition, and skipping this step will get your case dismissed.13United States Courts. Credit Counseling and Debtor Education Courses
The petition is a full financial snapshot. You’ll need federal tax returns from the last two years, pay stubs covering roughly the last six months, bank statements for all accounts, a complete creditor list with addresses and account numbers, current valuations of all property, and records of any transfers or payments to creditors in the year before filing. That last item matters: a trustee can potentially unwind payments to a family member or below-market transfers made in the months before filing.
You file with the U.S. Bankruptcy Court for the District of South Carolina, in the division covering your county.14United States Bankruptcy Court District of South Carolina. Court Locations The moment you file, an automatic stay freezes almost all collection activity: lawsuits, wage garnishments, creditor calls, foreclosures, and bank levies all stop. Creditors who violate the stay can face sanctions.15Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay
Roughly 21 to 40 days after filing, you’ll attend a meeting of creditors, often called a 341 meeting. Creditors rarely appear. The court-appointed trustee runs the meeting and asks questions under oath about your income, assets, debts, and paperwork. Bring a government-issued photo ID and proof of your Social Security number. If your filings are clean, the meeting usually runs under 10 minutes.5United States Courts. Chapter 7 Bankruptcy Basics
After filing and before discharge, you must complete a second course called debtor education, from a different approved provider than the pre-filing counseling.13United States Courts. Credit Counseling and Debtor Education Courses File the certificate promptly, because the court will not enter your discharge without it. In a routine case, the discharge order lands about 60 days after the date first set for the 341 meeting, putting the full timeline at roughly three to four months.16United States Courts. Discharge in Bankruptcy
After the Discharge
The discharge order permanently bars creditors from collecting on wiped-out debts. No calls, no letters, no lawsuits. A creditor who violates the order can face contempt sanctions.16United States Courts. Discharge in Bankruptcy
The filing itself stays on your credit report for up to 10 years from the filing date.17Consumer Financial Protection Bureau. How Long Does a Bankruptcy Appear on Credit Reports Many filers see score improvements within a year or two as the discharged balances disappear, though the filing remains visible to lenders and landlords for the full decade. Once you’ve received a Chapter 7 discharge, you cannot receive another one in a case filed within eight years of the first filing date. Courts can also deny a discharge entirely for concealed assets, destroyed records, or fraud connected with the case.18Office of the Law Revision Counsel. 11 USC 727 – Discharge