When you file for bankruptcy, you will be required to disclose your debts—which are also called creditor claims in bankruptcy court—and classify them as secured (home mortgage), unsecured (credit cards), priority unsecured (child support, alimony), or nonpriority unsecured (credit cards, medical bills). Priority unsecured debts cannot be discharged in a Chapter 7 bankruptcy, and you will remain responsible for them after your Chapter 7 bankruptcy. Priority unsecured debts also cannot be discharged in a Chapter 13 bankruptcy, and must be paid in full in a three-to-five-year repayment plan.

In South Carolina, as in all states, when filing for bankruptcy, individuals are required to list all of their debts and categorize them accordingly. Secured debts are those tied to an asset, like a home mortgage. Unsecured debts are not tied to any asset and include credit card debts and medical bills. Among unsecured debts, there are priority unsecured debts, such as child support and alimony, which are given special status. These priority debts cannot be discharged in a Chapter 7 bankruptcy, meaning the debtor remains responsible for their payment even after other debts may be forgiven. Similarly, in a Chapter 13 bankruptcy, priority unsecured debts are not eligible for discharge and must be paid in full over the course of the repayment plan, which typically spans three to five years. It's important for debtors in South Carolina to accurately classify their debts in bankruptcy proceedings to ensure compliance with federal bankruptcy laws and the specific requirements of the U.S. Bankruptcy Court for the District of South Carolina.