South Carolina Bankruptcy Courts
All attorney fees are subject to review by the South Carolina Bankruptcy Court. Additionally, the court establishes guidelines in typical consumer cases involving routine legal issues. Variations in authorized attorney fees are regularly approved however, based on the complexity of legal issues, novelty of application, or an excessive number of creditors. Ancillary proceedings (i.e. adversary proceedings) are not included within guidelines, and in the event an unusually high number of objections, hearings, and or motions are required, judges approve attorney fee increases on a case by case basis. For debtors, the best time to negotiate and understand attorney fees is during the initial consultation before signing a power of attorney.
South Carolina Bankruptcy Court Locations:
There are three South Carolina Bankruptcy Court Divisions: Charleston, Columbia, and Spartanburg.
Most attorneys require advance payment of fees because of the nature of the case. No competent attorney would accept a note for future fees, because the note itself is subject to discharge. Also, debtors must disclose the payment of all attorney fees to the court for review. This requirement serves two purposes. Judges and court ensure attorneys do not overcharge, and also discover the frequency and amount of attorneys fees over the course of year in anticipation of filing.
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