South Carolina
Bankruptcy in South Carolina (2026): Exemptions & Means Test
Independently fact-checked against primary sources (last audited August 17, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 7, 2026. · 5 primary sources cited on this page. How we verify our legal content
Bankruptcy is governed by federal law, but South Carolina sets the exemptions that decide which property you keep when you file. South Carolina has opted out of the federal bankruptcy exemption system, so residents must use the state's own exemptions under Title 15, Chapter 41 of the South Carolina Code. This guide explains the state's homestead, vehicle, and wildcard exemptions, the Chapter 7 means test for South Carolina, and where cases are filed. The figures below are dated; bankruptcy dollar amounts change, so confirm current amounts before relying on them.
Does South Carolina Use State or Federal Bankruptcy Exemptions?
South Carolina has opted out of the federal bankruptcy exemptions. Under S.C. Code 15-41-35, no individual may exempt property specified in 11 U.S.C. 522(d) except as expressly permitted by South Carolina law. That means a South Carolina filer protects property using the state exemptions in S.C. Code 15-41-30, not the federal menu. A handful of federal nonbankruptcy protections (for example, certain retirement accounts and benefits) can still apply, but the core property exemptions come from state law.
Residency rules under 11 U.S.C. 522(b)(3) determine which state's exemptions you use. If you have not lived in South Carolina long enough (generally the 730 days before filing, with a look-back for the prior period), the exemptions of a previous state may apply instead.
South Carolina Homestead Exemption
The homestead exemption protects equity in the home you or a dependent use as a residence. The base figure in S.C. Code 15-41-30(A)(1) is $50,000, but the statute requires the amount to be adjusted for inflation in even-numbered years. As adjusted effective July 1, 2026, the homestead exemption is approximately $80,125 for a single owner. Where multiple owners of a single residence both claim it, the combined cap is roughly $160,250.
The South Carolina Revenue and Fiscal Affairs Office publishes the updated amounts in a biannual memo to the Legislative Council, and the U.S. Bankruptcy Court for the District of South Carolina posts notices when they change. The most recent inflation adjustment took effect July 1, 2026 (a 60.2% cumulative increase over the 2006 base figures); the next one is due July 1, 2028, so verify the current figure before filing.
A federal cap can also apply. Under 11 U.S.C. 522(p), a debtor generally cannot exempt more than $214,000 (the amount in effect for cases filed on or after April 1, 2025, adjusted again April 1, 2028) of homestead equity acquired during the 1,215 days before filing. This rarely affects South Carolina filers because the state homestead is already below that cap, but it can matter for recently purchased equity.
Motor Vehicle, Personal Property, and Wildcard Exemptions
South Carolina protects equity in one motor vehicle up to about $8,000 per owner under S.C. Code 15-41-30(A)(2), as adjusted effective July 1, 2026. Married couples filing jointly can often each claim the vehicle exemption.
Other personal-property exemptions, as adjusted effective July 1, 2026, include roughly $6,400 in household furnishings, goods, clothing, appliances, books, and similar items; about $1,600 in jewelry; and up to about $2,400 in tools, books, and implements of the trade (S.C. Code 15-41-30(A)(6)). South Carolina also exempts certain firearms.
The wildcard works in two parts. S.C. Code 15-41-30(A)(5) gives a base cash exemption of about $8,000 (as adjusted effective July 1, 2026), but only to a filer who does not claim the homestead. Separately, 15-41-30(A)(7) lets a debtor apply any unused portion of the other exemptions, up to about $8,000, to property of the debtor's choosing. Confirm the current adjusted amounts, which the state updates every two years.
The South Carolina Means Test
The Chapter 7 means test compares your household income to the median family income for your household size in South Carolina. If your income is at or below the median, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7. If it is above the median, a more detailed calculation of disposable income on Bankruptcy Form 122A-2 decides whether the filing is presumed abusive.
The U.S. Trustee Program publishes the median figures and updates them periodically. For cases filed on or after April 1, 2026, the South Carolina median family income is:
- 1 earner: $64,808
- 2 people: $83,761
- 3 people: $95,672
- 4 people: $116,314
Add $11,100 for each individual beyond four. These numbers are revised about twice a year, so check the current U.S. Trustee table for your filing date.
Chapter 7 vs. Chapter 13 and the Automatic Stay
Chapter 7 is a liquidation. A trustee can sell nonexempt property to pay creditors, and most remaining unsecured debt is discharged, usually within a few months. Because South Carolina's exemptions cover a typical filer's home equity, car, and household goods, many Chapter 7 cases are no-asset cases where nothing is sold.
Chapter 13 is a reorganization. You keep your property and repay some or all of what you owe through a court-approved plan lasting three to five years. Chapter 13 suits filers who are behind on a mortgage or car loan and want to catch up, or whose means-test calculation raises a presumption of abuse in Chapter 7.
Filing either chapter triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection efforts, foreclosure, repossession, lawsuits, and wage garnishment while the case proceeds.
Where You File in South Carolina
South Carolina bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of South Carolina, a single statewide district headquartered in Columbia, with divisional coverage for Columbia, Charleston, and Greenville/Spartanburg. The court's website provides the local rules, forms, and filing information.
What Bankruptcy Can and Cannot Do
Bankruptcy discharges most unsecured debts, including credit cards, medical bills, and personal loans. It generally does not discharge most student loans, recent income taxes, child support, alimony, or debts from fraud. Before filing, you must complete a credit-counseling course from an approved provider, and before discharge you must complete a debtor-education course.
Exemption amounts, median income figures, and federal caps all change on their own schedules. This page is general information, not legal advice. The right chapter and the property you keep depend on your finances, so let a South Carolina lawyer check your exemptions against the current figures in a free bankruptcy evaluation (attorney advertising).
Frequently Asked Questions
Does South Carolina use state or federal bankruptcy exemptions?
South Carolina has opted out of the federal exemptions under S.C. Code 15-41-35, so filers must use the South Carolina state exemptions in S.C. Code 15-41-30 and cannot choose the federal set. Certain federal nonbankruptcy protections, such as some retirement accounts, can still apply.
What is the homestead exemption in South Carolina?
The homestead exemption is about $80,125 per owner, or roughly $160,250 for multiple owners of one residence, as adjusted effective July 1, 2026. The statutory base is $50,000, indexed for inflation in even-numbered years, with the next adjustment due July 1, 2028. Confirm the current figure before filing.
What is the South Carolina median income for the means test?
For cases filed on or after April 1, 2026, the U.S. Trustee Program median family income for South Carolina is $64,808 for 1 earner, $83,761 for 2, $95,672 for 3, and $116,314 for 4, plus $11,100 for each additional person. These figures update about twice a year.
Will I lose my house or car if I file bankruptcy in South Carolina?
Often no. The homestead exemption (about $80,125 per owner) and the motor-vehicle exemption (about $8,000 per owner) protect equity up to those limits, and you must stay current on the mortgage or car loan to keep the property. Equity above the exemption can be at risk in Chapter 7, while Chapter 13 lets you keep property and catch up on arrears.
What is the wildcard exemption in South Carolina?
South Carolina provides a base cash exemption of about $8,000 under 15-41-30(A)(5) for filers who do not claim a homestead, plus an unused-exemption wildcard of up to about $8,000 under 15-41-30(A)(7) that can be applied to property of the debtor's choosing. Both amounts are indexed and adjusted in even-numbered years, most recently effective July 1, 2026.
Where do I file for bankruptcy in South Carolina?
All South Carolina bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of South Carolina, which serves the entire state from Columbia and provides divisional coverage for Columbia, Charleston, and Greenville/Spartanburg.
What debts cannot be discharged in a South Carolina bankruptcy?
Most student loans, recent income taxes, child support, alimony, and debts from fraud generally cannot be discharged. Most credit-card debt, medical bills, and personal loans usually can be. A credit-counseling course is required before filing.
Updates
Clarified that income at or below the state median means the presumption of abuse does not arise under the Chapter 7 means test, not that a filer qualifies for Chapter 7.
Updated every South Carolina bankruptcy exemption figure to the amounts that took effect July 1, 2026 under the state's mandatory biennial inflation adjustment, corrected a mislabeled tools-of-the-trade figure, and retensed the page to reflect that the adjustment has already occurred rather than being upcoming.
Independently fact-checked against the cited primary sources
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
South Carolina Code of Laws, Title 15: CIVIL REMEDIES AND PROCEDURES
§ 15-41-30Property exempt from attachment, levy, and saleIn forcecited in 3 of our articles
(A) The following real and personal property of a debtor domiciled in this State is exempt from attachment, levy, and sale under any mesne or final process issued by a court or bankruptcy proceeding: (1)(a) The debtor's aggregate interest, not to exceed fifty thousand dollars in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor, except that the aggregate value of multiple homestead exemptions allowable with respect to a single living unit may not exceed one hundred thousand dollars. If there are multiple owners of such a living unit exempt as a homestead, the value of the exemption of each individual owner may not exceed his fractional portion of one hundred thousand dollars.
Official text (excerpt) · last checked 2026-09-06 · Read the full text in our law library · Verify at scstatehouse.gov
Cited in 19 court opinions in our collectionLatest citing opinion in our collection: 2025
Opinions citing this section in our collection:
- Cerny v. Salter (Supreme Court of South Carolina 1993, 311 S.C. 430)“…ty, Appellants (Cernys) challenge the constitutionality of S.C. Code Ann. § 15-41-30 (11)(B) (Supp. 1992). We affirm.…”
- American Service Corp. v. Hickle (Supreme Court of South Carolina 1993, 312 S.C. 520)“…appeals an Order holding that the Homestead Exemption Act, S.C. Code Ann § 15-41-30(11)(B) (Supp. 1992) 1 deprives Respond…”
- Ronaghan v. Charpia (Court of Appeals of South Carolina 2020)“…a is entitled to a homestead exemption in the property. See S.C. Code Ann. § 15-41-30(A)(1)(a) (2005 & Supp. 2019) (providing…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: South Carolina Debt Collection Laws: The Wage Garnishment Bar and the Tax-Levy Exception, South Carolina Homestead Exemption: Amount, Deadline and How to Apply
§ 15-41-35Exempt propertyIn force
No individual may exempt from the property of the estate in any bankruptcy proceeding the property specified in 11 U.S.C. Section 522(d) except as may be expressly permitted by this chapter or by other provisions of law of this State.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at scstatehouse.gov
United States Code Title 11
§ 522ExemptionsIn forcecited in 54 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 7,574 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Taylor v. Freeland & Kronz (1992) held that a trustee who does not object within the 30-day period cannot later challenge an exemption claimed under 522(l), even one with no statutory basis. Owen v. Owen (1991) held that 522(f) lien avoidance is not defeated by a state exemption written to exclude lien-encumbered property.
Opinions citing this section in our collection:
- Taylor v. Freeland & Kronz (Supreme Court of the United States 1992, 503 U.S. 638)✓A Chapter 7 debtor listed the entire proceeds of her TWA discrimination suit as exempt and the trustee let the 30-day objection window lapse; the Court held that under § 522(l) the property is exempt once no one objects, even absent a colorable statutory basis.
- Patterson v. Shumate (Supreme Court of the United States 1992, 504 U.S. 753)✓A debtor's $250,000 ERISA pension interest was excluded from his estate under § 541(c)(2); answering a surplusage argument, the Court read § 522(d)(10)(E) as exempting a broader set of plans, and expressly declined to decide whether § 522(b)(2)(A) also applied.
- Owen v. Owen (Supreme Court of the United States 1991, 500 U.S. 305)✓An ex-wife's judgment lien attached to a Florida condo before state law made it a homestead; the Court held § 522(f) measures impairment against the exemption the debtor would have had but for the lien, so Florida's carve-out for prior liens did not defeat avoidance.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Alabama (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test
§ 362Automatic stayIn forcecited in 54 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 19,606 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (1988) held that an undersecured creditor gets no interest as adequate protection under 362(d)(1) for delay caused by the stay. NLRB v. Bildisco & Bildisco (1984) applied 362(a) in requiring claims be pursued through bankruptcy administration, not suit.
Opinions citing this section in our collection:
- Clinton v. Jones (Supreme Court of the United States 1997, 520 U.S. 681)“…ublic interests. Brief for Petitioner 34-36. See, e. g., 11 U. S. C. § 362 (litigation against debtor stayed upon…”
- United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (Supreme Court of the United States 1988, 484 U.S. 365)✓An undersecured lender on a Houston apartment project sought monthly payments as the price of continuing the § 362(a) automatic stay; the Court held that 'adequate protection' under § 362(d)(1) does not entitle it to interest for the delay in foreclosing on its collateral.
- Pennzoil Co. v. Texaco Inc. (Supreme Court of the United States 1987, 481 U.S. 1)“…if it were forced to file for bankruptcy under Chapter 11. 11 U. S. C. §362 . Texaco, or its successor in interest,…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Arizona (2026): Exemptions & Means Test, Bankruptcy in Arkansas (2026): Exemptions & Means Test, Bankruptcy in California (2026): Exemptions & Means Test
Explore the law
This article also draws on these acts and chapters (opening at their first section): South Carolina Code of Laws, Title 15: CIVIL REMEDIES AND PROCEDURES § 15-41-10 (Minimum bid when selling property subject to exemption)
Related law for further reading — not part of this article’s citations.
Sources and References
- S.C. Code Title 15, Chapter 41 (Homestead and Other Exemptions), including 15-41-30 and 15-41-35(scstatehouse.gov).gov
- South Carolina Revenue and Fiscal Affairs Office memo, "Bankruptcy Property Exemption – Inflation Component" (Feb. 3, 2026), publishing the July 1, 2026 adjusted S.C. Code 15-41-30(A) exemption amounts (60.2% cumulative CPI adjustment)(rfa.sc.gov).gov
- U.S. Trustee Program, Census Bureau Median Family Income by Family Size (cases filed on or after April 1, 2026)(justice.gov).gov
- U.S. Trustee Program, Means Testing overview and forms(justice.gov).gov
- 11 U.S.C. 522 (Exemptions), including 522(b) opt-out and 522(p) homestead cap(law.cornell.edu)
- 11 U.S.C. 362 (Automatic stay)(law.cornell.edu)
- U.S. Bankruptcy Court, District of South Carolina, court locations and divisions(scb.uscourts.gov).gov
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