What Are the Costs of Filing Bankruptcy in South Carolina?

Filing for bankruptcy in South Carolina can be a daunting process, but understanding the costs associated with it is crucial for anyone considering this option. The total expenses can vary significantly depending on the type of bankruptcy filed, whether it is Chapter 7 or Chapter 13, and other individual circumstances.

1. Court Filing Fees
The first major cost when filing for bankruptcy is the court filing fee. As of 2023, the filing fee for Chapter 7 bankruptcy in South Carolina is approximately $338, while Chapter 13 bankruptcy filing fees are around $313. These fees are paid directly to the bankruptcy court and are generally non-refundable, even if your case is dismissed.

2. Attorney Fees
Hiring a bankruptcy attorney is another significant cost. While you are not legally required to have an attorney, having professional guidance can make the process smoother and more effective. Attorney fees in South Carolina can range from $1,000 to $3,500 or more depending on the complexity of your case and the attorney's expertise. It’s essential to find an attorney who offers a clear breakdown of their services and fees.

3. Credit Counseling Fees
Before filing for bankruptcy, debtors must complete a credit counseling course from an approved provider. This typically costs between $20 to $100. This fee can vary based on the provider, and some may offer the course for free or on a sliding scale based on income.

4. Additional Costs
Other potential costs in the bankruptcy process include:

• Cost of acquiring necessary documents (such as credit reports and financial statements),
• Fees associated with mandatory debtor education courses, typically ranging from $50 to $100,
• Costs incurred for additional motions or paperwork, which can vary based on the case.

5. Impact on Credit
While not an upfront cost, it’s important to consider the long-term financial implications of filing for bankruptcy. It can remain on your credit report for up to 10 years for Chapter 7 and up to 7 years for Chapter 13, potentially affecting your ability to secure loans or favorable interest rates in the future.

Conclusion
While the costs of filing for bankruptcy in South Carolina may seem overwhelming, it’s important to weigh these against the potential benefits of financial relief. Evaluating your situation with a qualified bankruptcy attorney can help you make a more informed decision. Remember, it's essential to budget for not only the direct costs of filing but also the long-term implications of bankruptcy on your financial health.