South Carolina Debt Collection Laws: Time Limits, Garnishment and Your Rights
South Carolina debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for South Carolina
- Time limit to sue on a written contract
- 3 years for an action on a contract, obligation or liability, express or implied (written or oral). Instruments under seal are excepted. S.C. Code 15-3-530(1); 15-3-520
- Wage garnishment limit
- Wages cannot be garnished for debts from consumer credit sales, consumer loans, consumer leases or rental-purchase agreements. An employer may not fire an employee because of a garnishment. S.C. Code 37-5-104, 37-5-106
- Money protected in a bank account
- Cash and other liquid assets (including bank deposits) up to $7,600 (base amount $5,000, inflation-adjusted figure effective July 1, 2024), but only for a debtor who does not claim the homestead exemption. S.C. Code 15-41-30(A)(5), (A)(7), (B); U.S. Bankruptcy Court D.S.C. notice of July 1, 2024 adjustment
- Answering a debt lawsuit
- In magistrate court, answer within 30 days after service, in writing (approved Answer form) or in person at the court. If you do not respond within 30 days, a default judgment is entered. S.C. Rules of Magistrates Court 7, 11; S.C. Judicial Branch, Magistrates Court FAQs
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 3 years for an action on a contract, obligation or liability, express or implied (written or oral). Instruments under seal are excepted. Source: S.C. Code 15-3-530(1); 15-3-520 |
|---|---|
| Time limit for credit cards and open accounts | 3 years, the same as written contracts; South Carolina uses one period for contracts express or implied. Source: S.C. Code 15-3-530(1) |
| Can a payment restart the clock? | Yes. A written acknowledgment or promise signed by the debtor, or a payment of any part of the principal or interest (which the law treats as a written promise), prevents the limitations bar. The suit is then brought on the original debt. Source: S.C. Code 15-3-120, 15-3-130 |
| How long a judgment lasts | A judgment is a lien on the debtor's real estate in each county where it is entered on the abstract of judgments, for 10 years from the date of the judgment. Source: S.C. Code 15-35-810 |
If you are sued
| Answering a debt lawsuit | In magistrate court, answer within 30 days after service, in writing (approved Answer form) or in person at the court. If you do not respond within 30 days, a default judgment is entered. |
|---|
Garnishment and what creditors can't take
| Wage garnishment limit | Wages cannot be garnished for debts from consumer credit sales, consumer loans, consumer leases or rental-purchase agreements. An employer may not fire an employee because of a garnishment. Source: S.C. Code 37-5-104, 37-5-106 |
|---|---|
| Money protected in a bank account | Cash and other liquid assets (including bank deposits) up to $7,600 (base amount $5,000, inflation-adjusted figure effective July 1, 2024), but only for a debtor who does not claim the homestead exemption. A wildcard of up to $7,600 of unused exemptions can also be applied to any property. Statute: https://www.scstatehouse.gov/code/t15c041.php. |
| Homestead exemption | Up to $76,125 in a residence used by the debtor or a dependent (up to $152,250 total for multiple owners of one home), as adjusted effective July 1, 2024. The statute's base amounts are $50,000 and $100,000. Statute: https://www.scstatehouse.gov/code/t15c041.php. |
| Vehicle exemption | One motor vehicle up to $7,600 (base $5,000, as adjusted effective July 1, 2024). |
| Bankruptcy exemptions | South Carolina has opted out of the federal bankruptcy exemptions; residents use South Carolina exemptions. Source: S.C. Code 15-41-35 |
Debt collectors and interest
| State debt collection law | Yes. The South Carolina Consumer Protection Code bars unconscionable conduct in collecting consumer credit debts and applies to both creditors and debt collectors. Factors include threats of violence or criminal prosecution, calls at unusual hours (before 8 a.m. or after 9 p.m.), contacting a consumer known to have a lawyer, and contacting third parties. A consumer may recover actual damages plus a penalty of $100 to $1,000. Source: S.C. Code 37-5-108(2), (5) |
|---|---|
| Interest rate limits | Judgments bear interest at the Wall Street Journal prime rate (first edition of the year) plus 4 percentage points, compounded annually; the S.C. Supreme Court confirms the prime rate by order each January. The legal rate on accounts stated and other sums due is 8.75%. Source: S.C. Code 34-31-20(A)-(B) |
Where to get help in South Carolina
Debt & Collections FAQ
What is the statute of limitations on debt in South Carolina?
3 years for an action on a contract, obligation or liability, express or implied (written or oral). Instruments under seal are excepted.
How long can a creditor sue on a credit card debt in South Carolina?
3 years, the same as written contracts; South Carolina uses one period for contracts express or implied.
Does making a payment restart the statute of limitations in South Carolina?
Yes. A written acknowledgment or promise signed by the debtor, or a payment of any part of the principal or interest (which the law treats as a written promise), prevents the limitations bar. The suit is then brought on the original debt.
How long does a court judgment last in South Carolina?
A judgment is a lien on the debtor's real estate in each county where it is entered on the abstract of judgments, for 10 years from the date of the judgment.
How much of my wages can be garnished in South Carolina?
Wages cannot be garnished for debts from consumer credit sales, consumer loans, consumer leases or rental-purchase agreements. An employer may not fire an employee because of a garnishment.
How much money in a bank account is protected from creditors in South Carolina?
Cash and other liquid assets (including bank deposits) up to $7,600 (base amount $5,000, inflation-adjusted figure effective July 1, 2024), but only for a debtor who does not claim the homestead exemption. A wildcard of up to $7,600 of unused exemptions can also be applied to any property.
What is the homestead exemption in South Carolina?
Up to $76,125 in a residence used by the debtor or a dependent (up to $152,250 total for multiple owners of one home), as adjusted effective July 1, 2024. The statute's base amounts are $50,000 and $100,000.
Can a creditor take my car in South Carolina?
One motor vehicle up to $7,600 (base $5,000, as adjusted effective July 1, 2024).
What debt collection practices are illegal in South Carolina?
Yes. The South Carolina Consumer Protection Code bars unconscionable conduct in collecting consumer credit debts and applies to both creditors and debt collectors. Factors include threats of violence or criminal prosecution, calls at unusual hours (before 8 a.m. or after 9 p.m.), contacting a consumer known to have a lawyer, and contacting third parties. A consumer may recover actual damages plus a penalty of $100 to $1,000.
What is the maximum legal interest rate in South Carolina?
Judgments bear interest at the Wall Street Journal prime rate (first edition of the year) plus 4 percentage points, compounded annually; the S.C. Supreme Court confirms the prime rate by order each January. The legal rate on accounts stated and other sums due is 8.75%.
How do I respond to a debt collection lawsuit in South Carolina?
In magistrate court, answer within 30 days after service, in writing (approved Answer form) or in person at the court. If you do not respond within 30 days, a default judgment is entered.
Which bankruptcy exemptions can I use in South Carolina?
South Carolina has opted out of the federal bankruptcy exemptions; residents use South Carolina exemptions.
Debt & Collections in other states
More South Carolina law
- South Carolina tenant rights & landlord-tenant law
- South Carolina small claims court
- South Carolina wills, probate & estates
- South Carolina protective & restraining orders
- South Carolina employment law
- South Carolina unemployment benefits
- South Carolina divorce & family law
- South Carolina expungement & criminal records
- South Carolina traffic tickets & dui
- South Carolina personal injury & wrongful death
- South Carolina workers' compensation
- South Carolina foreclosure & homeowner law
- South Carolina consumer protection
- South Carolina starting an llc & small business
- South Carolina bankruptcy
- South Carolina car insurance & vehicle laws
- South Carolina property tax & homestead exemptions
- South Carolina criminal law
- South Carolina gun laws
- Find a lawyer or free legal help in South Carolina
- All South Carolina law guides
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.