How to File Bankruptcy in South Carolina: A Comprehensive Guide

Filing for bankruptcy in South Carolina can be a daunting process, but with the right information, it can be a manageable journey. This guide will walk you through the essential steps and considerations.

Understanding Bankruptcy Types

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows you to discharge most of your debts. It is typically suited for individuals with limited income.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often called a reorganization bankruptcy, enables individuals to create a repayment plan to pay off debts over a period of three to five years.

Steps to Filing Bankruptcy

Gathering Financial Documents

Start by collecting all necessary financial documents, including income statements, tax returns, and a list of assets and liabilities.

Counseling Requirement

Attend a mandatory credit counseling session from an approved agency. This is a prerequisite before filing.

Filing the Petition

File your bankruptcy petition with the South Carolina Bankruptcy Court. This includes completing several forms detailing your financial situation.

Hiring a Bankruptcy Attorney

While you can file for bankruptcy on your own, hiring local bankruptcy lawyers can make the process smoother and help avoid common pitfalls.

Costs Involved

Understanding the costs associated with filing bankruptcy is crucial. This includes court fees, attorney fees, and other miscellaneous costs. For a detailed breakdown, visit how much does filing bankruptcy cost.

Life After Bankruptcy

Rebuilding Credit

After bankruptcy, focus on rebuilding your credit by paying bills on time and considering a secured credit card.

Budget Management

Create a realistic budget to manage your finances better and avoid falling into debt again.

Frequently Asked Questions