What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also called "liquidation" or "straight" bankruptcy, allows individuals to discharge (forgive) most unsecured debts fairly quickly. It provides a fresh financial start for people overwhelmed by debt. A Chapter 7 Trustee is appointed to review a Debtor's assets to determine if any assets are worth liquidating for the benefit of the Debtor's creditors. Because most assets are exempt, the assets might not be sold. If you have questions about whether Chapter 7 is right for you, set up a free consultation with one of our experienced attorneys. We focus our practice on helping individuals and businesses find debt relief, including Chapter 7, Chapter 11, Chapter 13, debt settlements, reorganizations and workouts, and other options.
Eligibility for Chapter 7 in South Carolina
To qualify for Chapter 7, you must pass the means test, which compares your income to the median in South Carolina. If your income is too high, you may need to consider Chapter 13 to reorganize. Other reasons a Debtor might file for Chapter 13 instead of Chapter 7 are: (1) to protect non-exempt assets at risk of liquidation, and (2) the Debtor is delinquent on payments on a secured asset such as a mortgage or car loan.
The Chapter 7 Bankruptcy Process
- Free consultation to review your history, your financial situation, and options.
- Pull credit and prepare Bankruptcy paperwork.
- File case and required forms with the court.
- Prepare for and attend the 341 Meeting of Creditors.
- Receive your debt discharge in about 3–6 months.
South Carolina Bankruptcy Exemptions
Common exemptions include:
- Homestead: Up to $76,000 of equity
- Vehicle: Up to $7,600 in equity
- Personal property, retirement accounts, and tools of trade
Using exemptions properly can help you keep most or all of your assets.
How a Bankruptcy Attorney Can Help
A South Carolina bankruptcy lawyer can help you:
- Determine eligibility and exemptions
- File paperwork correctly and meet deadlines
- Represent you in court and protect your assets
Need Help Filing Chapter 7 in South Carolina?
Contact an experienced bankruptcy attorney today for a free consultation. Understand your options and take control of your financial future.