Bankruptcy
Eddye Lane, P.A. is a debt relief agency under federal law. We help people file for bankruptcy relief under the United States Bankruptcy Code to get a fresh financial start or reorganize their debt.
Bankruptcy can be a great tool for protecting property against foreclosure, tax levies, judgments, garnishments, and repossessions. It’s almost like magic! The filing of bankruptcy immediately prohibits most ongoing efforts of foreclosures, evictions, repossessions, lawsuits, garnishments, tax levies, and other creditor collections.
Every case is custom to the particular debtor’s assets, finances, and the creditors involved. Don’t depend on the experiences of others who have filed when making your decision. Bankruptcy does not end one’s credit life, as active bankruptcy debtors often buy cars and homes while their case is pending, with the court’s permission. There are many qualifications, rules, and exceptions, so the best thing to do is to consult with an experienced bankruptcy attorney.
Our firm primarily provides bankruptcy services to individual consumers, which can include a husband and wife, in a Chapter 7 or Chapter 13, and any small- to moderately-sized businesses in a Chapter 7.
The goal in a bankruptcy is to get a “discharge” of debts. This is the court’s final order confirming that the filer is free of certain debts that were addressed in the bankruptcy. All debts are not dischargeable. Some examples are child support/alimony, student loans, certain tax debts, and criminal restitution. Corporations and businesses cannot get a discharge in a Chapter 7, but it may be very helpful in the dissolution of an entity or in the winding down of affairs.
What Is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is referred to as a liquidation or fresh start bankruptcy. In short terms, it is often used to wipe out certain debts completely. Don’t get too excited. It does not allow a debtor to wipe out secured debt and keep the collateral being purchased on credit. Chapter 7 is most popular for qualified persons who can no longer afford to pay their debt and have insurmountable credit card debt, medical bills, or other unsecured debt. Likewise, it does not necessarily mean that a debtor will lose any real or personal property that he or she owns or is purchasing. South Carolina has very attractive exemptions, meaning there are things that are appreciable categories of property that are protected from the creditor’s reach.
The typical Chapter 7 is usually complete within six months, and reporting of the bankruptcy filing remains on a debtor’s credit report for ten (10) years. This does not mean that a debtor cannot get new credit for that period, as the intent of the process is to provide a “fresh start.” Debtors can get credit from whomever will give it as soon as the Chapter 7 case is complete; however, debtors seeking the “fresh start” are strongly counseled against unnecessarily incurring new high-interest debt.
What Is Chapter 13 Bankruptcy?
Chapter 13 is referred to as a reorganization or repayment plan under bankruptcy laws. Think of it as restructuring monthly debt. Chapter 13 does not adjust your ongoing contractual mortgage obligation, but is often a help for people who are behind on their mortgage, car payments, or other debts, and for those who cannot pay all of the funds demanded by the creditor. In cases where items have been purchased more than 910 days before the date of filing, the debtor may be able to pay only the value of the item versus the full amount owed for the item, including cars and mobile homes.
One of the other attractive features of a Chapter 13 is that it may allow a debtor to pay a much smaller amount than is owed to unsecured creditors, so monthly obligations are more palatable. Unsecured creditors are those that are owed money, but do not hold or claim any collateral.
In Chapter 13, the debtor(s) will propose a Plan to the court and creditors to reflect how his or her debt will be paid on a monthly budget. A Chapter 13 Plan usually lasts between three and five years.
All persons, other than those excepted by law, are required to complete a credit counseling session with an approved counseling agency and provide a certificate for filing with the court, before filing the case. Participation in a financial management course and provision of a certificate of completion after filing is required before a discharge is granted by the court. If income and expense information is organized, the first session takes approximately 45 minutes online. The counseling services are also available telephonically for those who do not use the internet. Most of our internet user clients elect to use www.ccadvising.com for the first course. For the second course, our clients usually elect to use www.beadviser.com. They are both reasonably priced and offer quick production of the required certificates. Other approved credit counseling agencies for District of South Carolina filers can be found here.
To learn more about filing bankruptcy, including Chapter 7, 11, 12, and 13, click here.
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