What Happens to My Car and Home If I File for Bankruptcy in South Carolina?

If you file for bankruptcy in South Carolina, you may be able to keep your house and car, particularly if you stay current on payments and use the protections built into South Carolina’s exemption laws. Bankruptcy is designed to give you a financial reset, not take away every asset you rely on.

When you discuss your case with our bankruptcy lawyers in Florence at Reed Law Firm, they’ll walk you through how the law actually works and help you choose the chapter that protects your property and your future.

What Happens to My Home In a South Carolina Bankruptcy Case?

The answer depends on two major factors:

• Your mortgage status (whether it’s current or behind)
• Your home’s equity

If Your Mortgage is Current

If your equity falls within South Carolina’s exemption limit, the trustee cannot force a sale. In Chapter 13, you can keep your home even if your equity exceeds the exemption, and you can propose a repayment plan that allows you to keep your mortgage and catch up on missed payments over time.

If You’re Behind on Your Mortgage

Chapter 13 becomes a lifeline. Once filed, the automatic stay stops foreclosure immediately, even if your home is in the later stages of the process. A structured repayment plan can let you catch up gradually and prevent you from losing your home permanently.

For instance, if a homeowner on Hoffmeyer Road fell months behind on mortgage payments after a job loss, foreclosure letters can arrive quickly. In this case, a seasoned bankruptcy lawyer in Florence can file a Chapter 13 and stop the foreclosure the same day. A Chapter 13 repayment plan will allow them to repay arrears over five years and keep the house.

What Happens to My Car In a South Carolina Bankruptcy Case?

Most people keep their vehicles during bankruptcy. The law looks at:

• Equity in the vehicle (value minus the loan balance)
• Payment status
• Whether the car is necessary for work or household needs

If Your Loan is Current

You typically reaffirm the loan in Chapter 7 and continue paying it, or include the loan in a Chapter 13 repayment plan. If your equity falls within the SC exemption, the trustee cannot take your vehicle.

If You’re Behind on Your Car Loan

Chapter 13 allows you to catch up on the missed payments and spread them over time. In some cases, the law even allows a reduction of the loan balance or interest rate, depending on the vehicle’s age and value.

For instance, a worker at Florence’s industrial corridor near TV Road fell behind on their truck payments. Repossession seemed inevitable. In this scenario, a Florence bankruptcy attorney can file for Chapter 13 to stop the lender from taking the truck. Consequently, they’ll get to keep the vehicle by consolidating it into a manageable repayment plan.

How a Bankruptcy Lawyer in Florence Can Protect Your Home and Car

To do this, your attorney will examine the value of your home, the balance on your mortgage, and the equity in your vehicle. They’ll compare those numbers to South Carolina’s exemptions and determine which bankruptcy chapter gives you the strongest protection.

Your Florence bankruptcy lawyer will likewise consider the personal side, including your job, your transportation needs, your monthly budget, and what stability looks like for your family. Their primary goal is to build a bankruptcy plan that protects property and your chance at a fresh financial start.

Seek Legal Guidance From Our Bankruptcy Attorneys in Florence

Fear of losing property keeps many people from exploring bankruptcy, even when it could save their home, vehicle, and financial future. If you’re in the same boat, connect with Reed Law Firm at 803-726-4888 or online to explore your options with our Florence bankruptcy lawyers in a confidential case evaluation.