Find Bankruptcy Lawyers Near You in Myrtle Beach, SC

The cost of hiring a bankruptcy lawyer in South Carolina varies by case type and complexity. For a straightforward Chapter 7 case, attorney fees generally range from $1,200 to $2,500, with the court filing fee of $338 paid separately. Chapter 13 cases involve higher attorney fees, typically between $3,000 and $5,000, because the lawyer must manage a three-to-five-year repayment plan and attend multiple court hearings. Many South Carolina bankruptcy lawyers offer payment plans that allow you to pay attorney fees in installments before filing, and the court permits installment payments for the filing fee if you cannot pay the full amount upfront.

For individuals with limited income, South Carolina Legal Services may provide free legal assistance for bankruptcy cases, though eligibility is based on income guidelines. Some lawyers also offer flat-fee arrangements for Chapter 7 cases, which cover all work from initial consultation through the discharge hearing. It is important to discuss fee structures, payment schedules, and any additional costs such as credit counseling course fees during your initial consultation. This information is general and does not constitute legal advice; you should consult with a qualified bankruptcy attorney regarding your specific financial situation.

Bankruptcy law in Myrtle Beach, South Carolina provides individuals and businesses with a legal pathway to address overwhelming debt through federal court proceedings. The two primary options for individuals are Chapter 7 bankruptcy, which involves liquidation of non-exempt assets to discharge most unsecured debts, and Chapter 13 bankruptcy, which creates a court-approved repayment plan lasting three to five years. Chapter 7 is typically suited for those with limited income and few assets who cannot realistically repay their debts, while Chapter 13 works best for individuals with regular income who want to keep their property and catch up on secured debts like mortgage or car payments. For businesses, Chapter 11 bankruptcy allows reorganization while continuing operations, though it is less common for small businesses in Myrtle Beach compared to Chapter 7 or Chapter 13. The choice between these chapters depends on your income, asset value, debt type, and long-term financial goals, and a bankruptcy lawyer can help evaluate which chapter aligns with your specific circumstances.

South Carolina has its own set of bankruptcy exemptions that determine what property you can keep when filing for bankruptcy. Unlike some states, South Carolina requires residents to use state exemptions rather than federal exemptions, meaning you cannot choose between the two systems. The South Carolina homestead exemption allows you to protect up to $60,975 of equity in your primary residence as of 2024, with adjustments made every three years for inflation. For vehicles, you can exempt up to $5,800 in equity in one motor vehicle under South Carolina law. The state also offers a wildcard exemption of up to $5,800 that can be applied to any property of your choice, including cash, household goods, or other assets not covered by specific exemptions. Additional exemptions cover personal property such as clothing, household furnishings, appliances, and tools of the trade up to certain limits. These exemptions are codified in South Carolina Code Sections 15-41-30 and 15-41-35, and a bankruptcy lawyer can help you apply them correctly to protect your assets.

The means test is a critical calculation that determines whether you qualify for Chapter 7 bankruptcy or must file under Chapter 13. This test compares your current monthly income over the six months before filing to the median income for a household of your size in South Carolina. As of 2024, the median income for a single-person household in South Carolina is approximately $58,000, while a family of four has a median income around $88,000. If your income falls below these thresholds, you automatically pass the means test and can file Chapter 7. If your income exceeds the median, you must complete a more detailed calculation of your disposable income after subtracting allowed expenses, and if that disposable income is sufficient to repay a portion of your unsecured debts over five years, you may be required to file Chapter 13 instead. The means test forms are complex and require careful documentation of income sources, expenses, and household size, which is why working with a bankruptcy lawyer is essential to ensure accurate completion.

When you file for bankruptcy in Myrtle Beach, the automatic stay goes into effect immediately, stopping most creditor collection actions including phone calls, wage garnishments, foreclosure proceedings, repossession efforts, and lawsuits. This protection begins the moment your case is filed with the U.S. Bankruptcy Court for the District of South Carolina and remains in place until your case is closed or dismissed. From filing to discharge, a Chapter 7 case typically takes three to six months, while Chapter 13 cases last the duration of your repayment plan, usually three to five years. Before you can receive a discharge, you must complete two mandatory courses: a credit counseling course taken within 180 days before filing, and a debtor education course taken after filing but before discharge. These courses are available online or by phone and typically cost between $10 and $50 each. The court will not issue your discharge until you file certificates of completion for both courses, so it is important to schedule them promptly.

The costs associated with bankruptcy in Myrtle Beach include court filing fees and attorney fees. As of 2024, the filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, with installment payment plans available through the court for those who cannot pay the full amount upfront. Attorney fees for Chapter 7 cases in the Myrtle Beach area typically range from $1,200 to $2,500, while Chapter 13 attorney fees are higher, often between $3,000 and $5,000, because of the ongoing case management required. Many bankruptcy lawyers offer payment plans that allow you to pay attorney fees in installments before filing, though the filing fee must be paid in full or through a court-approved installment plan. For individuals with very low income, pro bono resources may be available through South Carolina Legal Services, which provides free legal assistance to qualifying low-income residents in bankruptcy matters. Additionally, the U.S. Bankruptcy Court for the District of South Carolina offers a pro se clinic for individuals who choose to file without an attorney, though this is not recommended for complex cases.

Life after bankruptcy requires a deliberate approach to rebuilding your financial standing. A Chapter 7 discharge remains on your credit report for ten years from the filing date, while a Chapter 13 discharge stays for seven years. During this time, you can begin rebuilding credit by obtaining a secured credit card, making all payments on time, and keeping credit utilization low. Many individuals see their credit scores improve within one to two years after discharge as old debts are removed and new positive payment history accumulates. It is important to understand that not all debts are dischargeable in bankruptcy. Student loans generally cannot be discharged unless you can prove undue hardship through a separate adversary proceeding, which is difficult to win. Most tax debts are not dischargeable, particularly income taxes less than three years old or those where you filed a fraudulent return. Child support, alimony, and most fines or penalties for violating the law also survive bankruptcy. A bankruptcy lawyer can provide guidance on which of your specific debts may be dischargeable and help you plan for the financial steps ahead.