Chapter 13 Bankruptcy in South Carolina: How a Repayment Plan Works

When people think about bankruptcy, they often picture losing everything. But Chapter 13 bankruptcy works differently. Instead of selling property to pay creditors, Chapter 13 lets you keep your assets and repay some or all of your debts through a court-approved plan over three to five years.



For many South Carolina families, Chapter 13 is a way to catch up on a mortgage, keep a car, stop collection calls, and get a fresh start without losing what they’ve worked for. Here’s how it works.

What Is Chapter 13 Bankruptcy?

Chapter 13 is sometimes called a “wage earner’s plan.” It’s designed for people with regular income who can afford to make monthly payments but need time and legal protection to get their debts under control.

You make one monthly payment to a Chapter 13 trustee, who then distributes the money to your creditors according to your plan. At the end of the plan, many remaining eligible debts can be discharged, meaning you no longer owe them.

Who Qualifies for Chapter 13?

To file Chapter 13, you generally need:

• Regular income, such as wages, self-employment income, Social Security, or retirement benefits
• Debts below the federal limits. For cases filed between April 1, 2025, and March 31, 2028, the limits are $526,700 in unsecured debt and $1,580,125 in secured debt.
• Up-to-date tax filings for the required years
• Credit counseling from an approved agency within 180 days before filing

Chapter 13 can also be an option for people whose income is too high to qualify for Chapter 7.

How Long Does a Chapter 13 Plan Last?

Your plan will last either three or five years. The length usually depends on your income:

• If your household income is below South Carolina’s median income for your family size, your plan is typically three years.
• If your income is above the median, your plan is typically five years.

Your monthly payment is based on your income, necessary living expenses, and the types of debts you owe.

What Can Chapter 13 Help With?

Chapter 13 offers powerful tools that aren’t available in Chapter 7. It can help you:

• Stop foreclosure and catch up on missed mortgage payments over time
• Keep your car and, in some cases, lower the amount you have to repay on a car loan
• Stop wage garnishments, lawsuits, and collection calls through the automatic stay
• Protect co-signers, such as a family member who co-signed a loan, from collection while your case is open
• Repay tax debts and support arrears over time without added pressure
• Protect property that may not be fully protected in a Chapter 7 case

If you’re worried about losing your home or vehicle, read more about whether you can keep your house and car in bankruptcy in South Carolina.

The Chapter 13 Process, Step by Step

Here’s a general overview of what to expect:

• Credit counseling: Complete an approved course before filing.
• File your petition and plan: Your attorney files your bankruptcy paperwork and proposed repayment plan with the court.
• Automatic stay: As soon as you file, most collection actions, including garnishments and foreclosure, must stop.
• Begin payments: You generally start making plan payments to the trustee within 30 days of filing.
• Meeting of creditors: You’ll answer questions from the trustee under oath. Creditors may attend but often don’t.
• Plan confirmation: The bankruptcy judge reviews your plan and decides whether to approve it.
• Complete your plan: You make your monthly payments for three to five years and finish a financial management course.
• Discharge: Once your plan is complete, many remaining eligible debts are discharged.

Chapter 13 vs. Chapter 7

Chapter 7 is often faster and wipes out eligible debts in a few months. But it may not be the right fit if you’re behind on your mortgage, have property you want to protect, or earn too much to qualify.

Chapter 13 takes longer, but it gives you more control over how you handle secured debts like your home and car. To compare, read our post on whether Chapter 7 bankruptcy is right for you.

Frequently Asked Questions

Can Chapter 13 stop a foreclosure in South Carolina?
Yes. Filing Chapter 13 triggers the automatic stay, which generally stops a foreclosure. Your plan can then give you time to catch up on missed mortgage payments.

What happens if I miss a Chapter 13 payment?
Missing a payment doesn’t automatically end your case, but it can lead to dismissal if it isn’t addressed. If your income changes, your attorney may be able to modify your plan.

Do I have to repay all of my debts in Chapter 13?
Not always. Many people repay only a portion of their unsecured debts, like credit cards and medical bills, depending on their income and expenses. Remaining eligible balances may be discharged at the end of the plan.

Talk to a Greenville Chapter 13 Bankruptcy Attorney

Chapter 13 can be a powerful way to protect your home, your car, and your future. Attorneys Jason Ward and Anna Tarbert of Ward & Tarbert, LLC help individuals and families in Greenville and throughout South Carolina understand their options and build a plan that works.

Learn more about Chapter 13 bankruptcy or how bankruptcy can stop wage garnishment and creditor harassment. Call 864-900-9323 or contact us to schedule a consultation.