Chapter 13 Bankruptcy in South Carolina

Chapter 13 Bankruptcy in South Carolina: A Lifeline for a Fresh Start

Facing insurmountable debts can be an overwhelming experience, leaving individuals and families in South Carolina trapped in a cycle of financial distress. Fortunately, the United States Bankruptcy Code offers a lifeline through Chapter 13 bankruptcy, providing an opportunity for debtors to restructure their debts and regain control of their financial future. In this article, we explore Chapter 13 bankruptcy in South Carolina, its benefits, eligibility criteria, and how it can be a powerful tool for a fresh financial start.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a form of personal reorganization bankruptcy, also known as a “wage earner’s plan.” It allows individuals with regular income to create a repayment plan to settle their debts over a period of three to five years. UnlikeChapter 7 bankruptcy, which involves liquidating assets to pay off creditors, Chapter 13 enables debtors to keep their property and assets while repaying their debts in manageable installments.

The Benefits of Chapter 13 Bankruptcy

  1. Protecting Assets: One of the most significant advantages of Chapter 13 bankruptcy is its ability to protect assets from being seized by creditors. Debtors can retain ownership of their homes, vehicles, and other essential assets, provided they continue making payments according to the repayment plan.
  2. Debt Consolidation: Chapter 13 allows individuals to consolidate their debts into one affordable monthly payment. This simplifies financial management and reduces the stress associated with juggling multiple creditors.
  3. Halting Foreclosure and Repossession: Filing for Chapter 13 puts an automatic stay on foreclosure and repossession proceedings. This means that debtors can avoid losing their homes or vehicles as long as they adhere to the repayment plan.
  4. Long-Term Debt Relief: Chapter 13 bankruptcy offers a more sustainable debt relief solution compared to other bankruptcy options. It allows individuals to maintain a steady income while resolving their debts over time.

Eligibility for Chapter 13 Bankruptcy

While Chapter 13 bankruptcy is an attractive option for many debtors, not everyone qualifies for this form of debt relief. To be eligible for Chapter 13 bankruptcy in South Carolina, individuals must meet the following criteria:

  1. Regular Income: Debtors need to demonstrate a stable source of income that enables them to create a repayment plan.
  2. Debt Ceiling: As of September 2021, unsecured debts must not exceed $419,275, and secured debts must not exceed $1,257,850 to qualify for Chapter 13 bankruptcy.
  3. Tax Filings: Individuals seeking Chapter 13 bankruptcy must have filed their federal and state income tax returns for the previous four years.
  4. Credit Counseling: Before filing, debtors must complete credit counseling from an approved agency within 180 days.

The Chapter 13 Bankruptcy Process

  1. Petition Filing: To initiate the Chapter 13 bankruptcy process, debtors must file a petition with the bankruptcy court in their district. Along with the petition, they need to provide information about their income, debts, expenses, and a proposed repayment plan.
  2. Automatic Stay: Once the petition is filed, an automatic stay is imposed, halting all collection efforts from creditors. This provides immediate relief and breathing space for the debtor.
  3. Repayment Plan: The debtor, with the help of a bankruptcy attorney, designs a repayment plan based on their income and expenses. The plan must be submitted to the court for approval.
  4. Creditor Meeting: Debtors attend a meeting with creditors, where they can address any concerns and finalize the repayment plan.
  5. Approval and Execution: Once the court approves the repayment plan, debtors begin making payments to a bankruptcy trustee, who then distributes the funds to creditors according to the plan.


For individuals drowning in debts and seeking a viable path to financial recovery, Chapter 13 bankruptcy in South Carolina can be the light at the end of the tunnel. By offering debtors the chance to restructure their debts while keeping their assets intact, Chapter 13 bankruptcy provides a realistic opportunity to regain control of one’s financial future. If you find yourself in dire financial straits, consult a qualified bankruptcy attorney to explore whether Chapter 13 bankruptcy is the right solution for your situation. Remember, with proper guidance and discipline, Chapter 13 can pave the way for a fresh financial start. Call today for a free to set up a free consultation ! We have offices in Columbia, Greenville, and Florence. However, we assist people in all cities in South Carolina to include Charleston and Spartanburg


- Stone Law Firm