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How To Claim Bankruptcy In South Carolina

How To Avoid Bankruptcy In South Carolina

Guidance for Bankruptcy – South Carolina Legal Services

If you are facing financial troubles in South Carolina, you might think bankruptcy is your only option. You might be hesitant about seeking the help of an experienced bankruptcy attorney because you are afraid of the stigma and reputation that might follow you when you file for bankruptcy protection. However, there are things that you can do to help you get your financial footing reestablished and avoid filing for bankruptcy even if you are facing financial woes. When you are facing financial problems and you cant pay your bills on time, you and your family are caught in a stressful situation that takes over your thoughts 24 hours a day. Facing financial problems can be one of the most challenging things you do in your lifetime. Here at David Aylor Law Offices we want our clients to be aware of all the options available to them.

What Is Chapter 7

Chapter 7 results in termination of a business. A trustee is appointed to take control of the business assets and liquidate them to distribute to the creditors in the order of their priority. For an individual, the trustee liquidates non-exempt assets which have equity for the benefit of unsecured creditors, and the individual is relieved of his debt.

What Information Should A Creditor Client Provide In Order To Analyze The Best Course Of Action

In its initial discussion with a bankruptcy professional, a creditor client should provide all documentation regarding its relationship with the borrower, including all loan documentation, financial statements, mortgages, guaranties, UCC financing statements, invoices, bills of lading, payment receipts, and correspondence addressing the relationship between the creditor and debtor. A current statement as to the outstanding unpaid balance is essential and a historic statement as to payment dates and amounts is also helpful. In addition, any available appraisals, inventories or borrowing base certificates should be provided.

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The Process Of Filing For Bankruptcy

The first thing that youll need to do when you file for bankruptcy in South Carolina is to contact a lawyer. Find a good lawyer that is well experienced in the laws pertaining to bankruptcy. Next, you need to collect paperwork that contains information such as how much you make, what major possessions and property you own, and a list of your current living expenses. This information is then used to fill out the various forms needed when one files for bankruptcy. The petitions and forms are then filed with the South Carolina district bankruptcy court and your case is ready to go.

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  • Chapter 13 Bankruptcy South Carolina: 7 Things You Need to Know

Chapter 13 bankruptcy in South Carolina provides debt relief and asset protection for people who are working or receive a steady income. Individuals and couples who have trouble paying their debts can turn to Chapter 13 Bankruptcy to reorganize their debts into a monthly plan they can afford.

That said, filing Chapter 13 is a big decision. You are committing to a bankruptcy repayment plan that could last for up to five years. This is why understanding the bankruptcy differences and understand your Chapter 13 plan payment is crucial to making the most informed decision. Lets get started.

Dealing With Your Car

Claim Withdrawal Form

Concern about what a Chapter 7 bankruptcy in South Carolina means for your vehicle is normal. After all, chances are you need the car to travel to work and back, among other things. The good news is that filing bankruptcy in South Carolina puts you in the drivers seat, meaning you can choose what to do with the car. Do you love the car, your monthly payment is manageable, and the remaining loan balance does not significantly exceed the current value of your vehicle? If so, you can choose to keep everything the way it was before your Chapter 7 bankruptcy in South Carolina was filed. This is done by way of a reaffirmation agreement. Since this agreement basically removes the car loan from the pool of debts that are getting discharged, you should only sign it if you are sure that you are able to make the monthly payments without issue. Another option to deal with your car is to give the car back. While doing this in any other situation doesnt get you out of having to pay the loan, filing bankruptcy in South Carolina does just that. In other words, such a surrender allows you to walk away without having to worry about what the creditor might do about a deficiency balance after the car is sold at auction. Your liability on any such deficiency is discharged as part of your South Carolina bankruptcy.

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How Are Chapter 7 And Chapter 13 Bankruptcy Different

Chapter 13 bankruptcy is a form of debt repayment. You submit a proposed repayment plan with your bankruptcy petition to the court. After all, your monthly expenses of a reasonable nature are paid, you must indicate how much money you have available to pay toward any of your other outstanding debts and how this money should be divided among your creditors. Priority claims, which are secured debts, such as mortgage payments, any taxes owed, and back child support, must be paid in full. Any unsecured debts, such as credit cards, medical bills, and unsecured loans are usually only partially paid.

While it can vary from one petitioner to another, unsecured debts might be paid at rates as low as 10 cents on the dollar. Any debt repayment plan must pass three tests it is delivered in good faith unsecured creditors will be paid at a rate equal to what they would receive in a Chapter 7 filing and all of your disposable income is paid directly into your Chapter 13 plan for at least three years but as long as five years to meet the payment requirements to match the amount of unsecured debt payments that would be received through a Chapter 7 filing.

South Carolina Bankruptcy Exemptions

When you file Chapter 7 bankruptcy in South Carolina, everything you own is considered an asset and you are allowed to keep only assets protected by a valid exemption. If you have lived in South Carolina for at least two years when your case is filed, you have to use the South Carolina bankruptcy exemptions. In addition to protecting specific types of property, the South Carolina bankruptcy laws include a so-called wildcard exemption which allows you to protect unspecified property up to a certain amount.

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What Are Priority Claims

This is a technical term used in bankruptcy law, and refers to what debts must be paid before all other debts .

A list of the most common priority claims can be found on Form 10 . These include

  • past due debts for child and spousal support,
  • most unpaid taxes, and wages,
  • salaries or commissions you owe to employees and
  • contributions you owe to an employee benefit fund.

The full definition of the nine types of priority debt is found in section 507 of the bankruptcy code.

Navigating Your South Carolina Bankruptcy Case

What are North Carolina’s exemptions ? Charlotte Bankruptcy Lawyer

Bankruptcy is an unusual area because it’s essentially a qualification process. The laws provide instructions for completing a 50- to 60-page bankruptcy petition, and because all rules apply in every case, you can’t skip a step.

One way to keep track of your research is to use the bankruptcy forms as an outline. You’ll find links to the exemption-related bankruptcy forms and other exemption resources in the chart below. You can also look at the list of Chapter 7 and 13 bankruptcy forms to see where this topic fits in the bankruptcy scheme. And this handy bankruptcy document checklist will help you gather the things you’ll need to complete the petition.

Bankruptcy Exemption Information

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    How To File Bankruptcy In South Carolina For Free

    Even though there is a $338 court filing fee for a Chapter 7 bankruptcy in South Carolina, you can ask the court to waive this fee. As long as your income is less than 150% of the federal poverty guidelines and the court finds that you are unable to pay the fee even after filing bankruptcy in South Carolina, you can file your case for free.

  • Dealing with Your Car
  • The Bankruptcy Process For Small Businesses

    The Small Business Reorganization Act of 2019 created shorter deadlines, a streamlined process and statutory changes giving small business debtors greater flexibility in negotiating with creditors under the new Subchapter V of Chapter 11. This change allowed small businesses a feasible means to reorganize and retain the business without the rigorous requirements of a Chapter 11 case that usually made the relief unaffordable and unsustainable for a small entity.

    In order to qualify to apply for bankruptcy protection under Subchapter V, you must be engaged in commercial or business activities and have specific types of debt of $2,556,050.00 or less.

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    What Can I Keep When I File For Bankruptcy

    The main reason people avoid bankruptcy is the fear that they will lose everything they own in the process. A fresh start may be appealing, but walking away with nothing to your name will hardly feel like an opportunity for financial security. Fortunately, North Carolina permits those who file for bankruptcy to claim certain properties as exempt. These assets will not be sold in the process of repaying your creditors.

    The type of bankruptcy proceeding you choose is closely related with your exemptions, so enlisting the help of an experiencedbankruptcy attorney near you is essential. At theLaw Office of Kimberly A. Sheek, I will answer every question you have about filing for bankruptcy. My goal is for you to understand each step of the proceeding, as well aswhat life may look like afterward. Together, we can protect as many of your assets as possible to ensure you have what you need to build a better future.

    Learn more about bankruptcy exemptions in North Carolina, by calling 842-9776 for a free consultation.

    Are There Alternatives To Bankruptcy

    Bankruptcy Proof of Claim

    Filing for bankruptcy is often the best option for certain people in certain situations, but for others, debt consolidation may be a viable option. Debt consolidation means that you take all of your debts and combine them into one. You then pay a fixed rate on the one consolidated debt.

    A bankruptcy attorney can help you through this process as well. Basically, a debt consolidator purchases your debt from your creditors. They give you a fixed interest rate, and a repayment plan that you can manage. The bankruptcy does not go on your credit record, and it will get your creditors off your back.

    If, however, the repayment plan is more than your budget can accommodate, you will have to file for bankruptcy.

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    Are There Any Other Considerations When Filing For Bankruptcy In South Carolina

    An exemption limit applies to any equity you have in property, and limits the amount of equity that is exempt. Equity refers to the difference between the fair market value of the property and the unpaid balance on the property. An example of this would be how a home valued at $500,000 with a loan of $450,000 has an equity value of $50,000. If the states homestead exemption is $50,000 or greater, the debtor would be exempt from liquidating the $50,000 equity in the home in order to pay off their debts.

    There are other factors that can affect what your limit will be, depending on where you live. Marriage may allow couples in some states to double their exemption limits. Filing with head of household status, or having a number of dependents, may also increase some exemption amounts. In some states, senior citizens may have a higher exemption limit on homestead, personal property, or other items in comparison to other states. Disability may also raise your exemption limit, especially for motor vehicles.

    A creditor may attempt to claim a debtors exempt property. This frequently occurs over the classification of property as non-exempt. In such cases, the debtor must prove that the property is in fact exempt, and that the creditor has no claim in it.

    Submit A Reorganization Plan

    Subchapter V requires that you must submit a plan of reorganization within 90 days of the filing date. If at all possible, the plan is prepared before the case is filed in order to have a comprehensive strategy in the case.

    The plan must include terms of payment to each creditor and provide a clear statement of the financial circumstances of the business that led to the need for reorganization and the means to feasibly fund the plan moving forward. You will seek votes from creditors to approve the plan and the goal is to arrive at an agreed payment structure to allow for a quick confirmation of the plan.

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    What Do I Need To Know About Chapter 11 Bankruptcy In South Carolina

    Chapter 11 bankruptcy is mostly used by businesses and corporations, although it is available to individuals as well. This type of bankruptcy provides the South Carolina debtor the opportunity to restructure their business so that their financial situation can be improved.

    A Chapter 11 bankruptcy helps debtors reorganize their business or their personal assets and debts. The duration of the bankruptcy is dependent on the level of debt and the complexity of the business situation. It is the most complex of all types of bankruptcy and is also the most expensive. Companies that decide to opt for Chapter 11 bankruptcy do so after significant thought and analysis as well as a consultation with their South Carolina bankruptcy attorney. Only when they are sure it would be their best alternative, do they go for it.

    Bankruptcy Exemptions In South Carolina

    Chapter 7 Bankruptcy South Carolina: Cost and Qualification in 2021

    Each state has its own rules about exemptions when debtors file for Chapter 7 or Chapter 13 bankruptcy. Exemptions are what property is safe from the bankruptcy process and creditors. Typical exemptions are things such as homes, cars, insurance policies and retirement accounts. South Carolina law requires that a debtor use specific exemptions laid out in state law. Exemptions have to be claimed at the time of filing for bankruptcy or you may forfeit their protection.

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    What Should Be Considered In Choosing A Bankruptcy Lawyer

    Because bankruptcy is a very specialized area of the law, it is essential that a qualified attorney be chosen with experience in the particular type of bankruptcy involved. Some very qualified bankruptcy attorneys do not provide representation in Chapter 11s because they focus on representing consumers in smaller bankruptcies, rather than businesses. In choosing a bankruptcy attorney for Chapter 11, it is critical to determine that he or she has substantial experience in the field of Chapter 11 bankruptcy.

    Bankruptcy is one of the few areas of the law in which attorneys are allowed to become certified specialists. Christine Brimm has been certified by The Supreme Court of South Carolina as a specialist in bankruptcy and debtor-creditor law.

    Stop Collection Agency Calls Protect Your Home Car And Possessions

    Across the country, millions of good folks who have been working hard their entire lives have had to face the fact that they can’t make ends meet. Perhaps they lost a job, have a mountain of medical bills, can’t pay the mortgage or are falling behind on car payments and creditors. Don’t despair: There is a way out, and the compassionate legal professionals at Benjamin R. Matthews and Associates, LLC can help you make a fresh start.

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    Bankruptcy Property Exemptions In South Carolina

    As previously mentioned, bankruptcy property exemptions can vary from state to state. South Carolina law requires that statebankruptcy exemptionsbe utilized, as opposed to federal standards, due to the fact that the state has opted out of the federal exemptions. Many of South Carolinas common bankruptcy exemptions are listed below. However, the amounts listed could be higher if filing for bankruptcy as a married couple.

    Bankruptcy property exemptions in South Carolina include:

    • Homestead and Motor Vehicle: In South Carolina, homestead refers to equity in dwelling used as residence. Homestead exemptions are up to $58,225 in a residence or burial plot. Motor vehicle exemptions, or equity in an automobile, is $5,825 and
    • Personal Property: Up to $4,650 in the following categories of personal property:
    • Household goods
    • Musical instruments and
    • Animals, and/or crops
  • Jewelry and Hearing Aids: Up to $1,175 in jewelry, as well as health aids such as a wheelchair
  • Tools of the Trade: This exemption is up to $1,750 in implements, books, and other professional tools
    • Cash: If there is no homestead or burial exemption, there is an exemption of up to $5,825 in cash or liquid assets
    • Pensions and Retirement: Tax exempt retirement accounts are obviously exempt property. ERISA and pension fund benefits are considered to be exempt, as well as public employee pensions. Assembly member, police, firefighter, judge, and solicitor pensions are also exempt


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