I help people with consumer debts in SC and many of my clients have unrealistic beliefs about what creditors can do to collect in our state. In many cases, your debt situation is not as bad as you think thanks to protections our state has.
I advocate for paying debt obligations back but sometimes a catastrophe happens and we need to know our rights in SC. With the pandemic and many people out of work, I am seeing alot of anxiety. I hope this info helps :
1. Our state is one of 2-3 states that does not allow wage garnishment. In other states if a credit card gets a judgment against you, they easily start garnishing your wages. No such law in SC. There are caveats to this such as IRS tax, child support and some jurisdictional caveats.
So for most people in SC, other than having a lien on your house for ten years, that is usually all credit cards do to collect. There is a mechanism for them to go further in the court system (especially if they know you have significant assets), but usually they do not.
2. Medical debts. If there is one debt I would not pay if I was in economic trouble it is this debt. In most cases the only thing medical hospitals or doctors do is try to make a claim against your SC tax refund pursuant to the SC Gear Program. Most do not sue. Significant amount of medical debt does not even get reported to your credit report
3. There is a moratorium in SC on foreclosures until next month and many lenders are extending it longer. If you are behind, call your lender to exhaust all remedies to include loan mods.
State exemptions. Even if you have a creditor sue you and they elect to fight you all the way, every citizen in SC can claim exemptions on specific assets. SC used to have the worst exemptions - now we are top ten state. Here are some specifics:
Homestead : you can have approx 62k in equity protected from creditors (124 joint )
Cars: 6200 equity in a car
Cash : 6200 (if homestead is not claimed)
Household items : 4700
Jewelry: 1100
Guns: 3500
401k: total
Wildcard : 6200 ( can use for any assets or stack on others )
Note: figures are approx amounts and we have a cost of living adjustment added in
If you have debt issues now- take a deep breath. Times will get better soon and in many instances the debt issue is not as bad as you think it is. Talk with your lender, try to get a realistic plan to pay back. Creditors talk a big game when trying to collect and many do not know our specific rights in SC when they call so keep that in mind.
I advocate for paying debt obligations back but sometimes a catastrophe happens and we need to know our rights in SC. With the pandemic and many people out of work, I am seeing alot of anxiety. I hope this info helps :
1. Our state is one of 2-3 states that does not allow wage garnishment. In other states if a credit card gets a judgment against you, they easily start garnishing your wages. No such law in SC. There are caveats to this such as IRS tax, child support and some jurisdictional caveats.
So for most people in SC, other than having a lien on your house for ten years, that is usually all credit cards do to collect. There is a mechanism for them to go further in the court system (especially if they know you have significant assets), but usually they do not.
2. Medical debts. If there is one debt I would not pay if I was in economic trouble it is this debt. In most cases the only thing medical hospitals or doctors do is try to make a claim against your SC tax refund pursuant to the SC Gear Program. Most do not sue. Significant amount of medical debt does not even get reported to your credit report
3. There is a moratorium in SC on foreclosures until next month and many lenders are extending it longer. If you are behind, call your lender to exhaust all remedies to include loan mods.
State exemptions. Even if you have a creditor sue you and they elect to fight you all the way, every citizen in SC can claim exemptions on specific assets. SC used to have the worst exemptions - now we are top ten state. Here are some specifics:
Homestead : you can have approx 62k in equity protected from creditors (124 joint )
Cars: 6200 equity in a car
Cash : 6200 (if homestead is not claimed)
Household items : 4700
Jewelry: 1100
Guns: 3500
401k: total
Wildcard : 6200 ( can use for any assets or stack on others )
Note: figures are approx amounts and we have a cost of living adjustment added in
If you have debt issues now- take a deep breath. Times will get better soon and in many instances the debt issue is not as bad as you think it is. Talk with your lender, try to get a realistic plan to pay back. Creditors talk a big game when trying to collect and many do not know our specific rights in SC when they call so keep that in mind.
