Bankruptcy in South Carolina (2026): Exemptions & Means Test

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, you presumptively qualify 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 income is too high to pass the means test for 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. Because the right chapter and the property you can protect depend on your specific finances, consider consulting a licensed South Carolina bankruptcy attorney and confirming every figure against the current statute and U.S. Trustee data.