What You Need to Know About Bankruptcy Court Procedures in South Carolina – Insights from “The SCOOP”
If you’re considering bankruptcy or are already in the process, understanding the legal procedures can make a significant difference in the success and efficiency of your case. At Stone Law Firm, our experienced Chapter 7 and Chapter 13 bankruptcy attorney is here to guide you through each step.
The U.S. Bankruptcy Court for the District of South Carolina recently released its July 2025 issue of “The SCOOP” – a newsletter with practical tips and reminders for those practicing bankruptcy law. This valuable update offers clarity on common procedural issues and how to avoid costly mistakes when filing for bankruptcy protection. In this blog post, we summarize the key takeaways from “The SCOOP” and explain how they might impact your bankruptcy case, whether you’re filing under Chapter 7, Chapter 13, or Chapter 11. I like the Court’s new newsletter blog because it helps keep the SC consumer bankruptcy attorneys up to date on the issues the SC Bankruptcy Court view as critical.
Artificial Intelligence and Federal Bankruptcy Rules
With the rise of AI tools being used for document preparation, the court reminds all filers that compliance with Fed. R. Bankr. P. 9011 is mandatory. Even if an AI-generated document is used, you are still legally responsible for verifying its accuracy. AI tools have produced incorrect or misleading content that has made its way into court filings—something the court is cracking down on. The Scoop cites a case that involved AI drafting in a pleading where there were mistakes. This is a wake up call for all bankruptcy consumer attorneys we cannot blindly rely on AI to draft motions and pleadings.
What This Means for You:
If you are filing for Chapter 7 or Chapter 13 bankruptcy, it is crucial to work with a qualified bankruptcy attorney like those at Stone Law Firm. We don’t rely on AI to complete your filing—we rely on decades of legal experience to ensure accuracy and compliance with court rules.
Notice of Contested Hearings
If a hearing is expected to last more than 30 minutes, include testimony, or involve contested evidence, a “Notice of Contested Hearing“ must be filed no later than 10:00 AM three business days before the hearing. If applicable, a Joint Statement of Dispute should also be filed.
This rule applies to various motions and objections that could arise in Chapter 13 repayment plans or Chapter 7 asset cases.
Exhibits in Hearings and Trials
Litigants are reminded to coordinate and mark exhibits well in advance of a hearing or trial. Make sure all parties have a copy, including the court staff.
Best Practice:
At Stone Law Firm, our bankruptcy attorney takes the time to prepare every detail, including exhibits, to ensure smooth hearings whether you’re in a Chapter 7 liquidation or Chapter 13 reorganization case.
Continuance Requests Must Be Justified
The court now strictly requires justification for continuance requests. In Chapter 13 cases, consent must be obtained from the trustee. In Chapter 11, the U.S. Trustee must also agree.
If all affected parties do not consent, a motion must be filed explaining the reason for the delay and what steps have been taken to secure agreement. On a personal note, I have seen how the Court has become frustrated over continuance requests that are not justified. As a SC bankruptcy attorney, make sure any request has a real reason.
Stay Relief Motions: New Rules Starting December 1, 2024
Effective December 1, 2024, if you’re seeking relief from the automatic stay, the applicable rule is now FRBP 4001(a)(4). This rule provides clarity on orders that grant relief from stay, often requested by creditors in Chapter 13 and Chapter 7 cases.
Motions to Extend or Impose the Automatic Stay
If you file for bankruptcy and need to extend or impose the automatic stay, this motion must be filed early—within 30 days of the case filing. If you can’t get a hearing in time, you may need to file a separate motion for temporary relief.
Why It Matters:
This is especially important for repeat filers who may not have the full protection of the automatic stay unless action is taken. Our Chapter 13 bankruptcy attorney at the Stone Law Firm is experienced in handling these emergency motions to protect your assets and stop creditor actions.
Chapter 11 and Subchapter V Updates
While most individuals file under Chapter 7 or Chapter 13, business owners or high-debt individuals may file under Chapter 11, including Subchapter V. The court now urges timely filing of first-day motions (such as those to use cash collateral or pay wages). Also, when opening a Subchapter V case, schedules and statements should be properly tagged in CM/ECF. So far I have not filed a V case yet.
Certificates of Service
Failure to properly serve documents can cause delays or missed deadlines. The court encourages the use of the CM/ECF mailing matrix to ensure all interested parties receive proper notice.
Why Choose Stone Law Firm for Your Bankruptcy Case?
Whether you are an individual drowning in credit card debt or a small business struggling to stay afloat, bankruptcy may be a viable solution. At Stone Law Firm, our experienced Chapter 7 and Chapter 13 attorneys provide full-service representation, including:
- Preparing and filing your petition
- Handling contested hearings
- Managing creditor objections
- Filing emergency motions for the automatic stay
- Representing you in adversary proceedings or hearings (a separate retainer must be signed in most cases)
Why Our Clients Trust Us:
- We stay up-to-date with court procedures and local rule changes, including updates from newsletters like “The SCOOP.”
- We offer compassionate, judgment-free consultations. Attorney Stone cares and shows compassion.
- Our team has successfully handled hundreds over 3500 bankruptcy cases in the South Carolina Bankruptcy Court.
Which Bankruptcy Chapter Is Right for You?
Chapter 7 – Liquidation
This option is best for individuals with limited income and high unsecured debts. You may be able to discharge credit card debt, medical bills, and personal loans. Our Chapter 7 attorneys will evaluate your eligibility and help protect your assets through available exemptions.
Chapter 13 – Wage Earner’s Plan
Ideal for those with a regular income, Chapter 13 bankruptcy allows you to reorganize debt and repay over 3–5 years. This is often used to stop foreclosures, catch up on missed mortgage or car payments, and protect non-exempt property.
Our Chapter 13 bankruptcy attorneys will work with you to propose a feasible repayment plan and ensure court approval.
Final Thoughts
The latest guidance from the U.S. Bankruptcy Court for the District of South Carolina serves as a reminder that attention to detail and procedural accuracy are critical in bankruptcy cases. If you’re navigating financial hardship, don’t go it alone.
Contact Stone Law Firm today to speak with a trusted Chapter 7 or Chapter 13 bankruptcy attorney. We’re here to help you make a fresh start—efficiently, lawfully, and compassionately.
📞 Call us today to schedule your free consultation and start your journey to financial freedom.
Stone Law Firm
Bankruptcy Law You Can Trust in South Carolina
Serving Charleston, Columbia, and Greenville