When you declare bankruptcy in South Carolina, odds are you will be declaring Chapter 7 bankruptcy, or the process of liquidation. But before you do so, you will have to enter a credit counseling program for at least 6 months prior to filing. In order to be eligible, you must also make less in a year than is the median annual income for your state. If you meet these qualifications you may file. As the name liquidation bankruptcy implies, you will be in a process of liquidating your assets in order to pay off your creditors. The good news is that each state has exemptions which keep creditors from taking most if not all of your stuff.
The process of filing for bankruptcy
The first thing that you'll 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.
341 hearing
After your case for bankruptcy in South Carolina has been filed, it will please you to know that your creditors will no longer be able to ask you for money and any leans they have against your property must be dropped. You will then have a hearing with your creditors known as a 341 hearing. Here you will be under oath and must answer any questions that they or the trustee in the case may have.
Exemptions in South Carolina
Finally, when you declare bankruptcy in South Carolina, you must make sure that you have declared as much of your property as exempt as possible; that way your creditors will not be able to take it. Examples of property that is exempt in the state of South Carolina includes: real property used as primary residence up to $50,000, burial plot, motor vehicle up to $1200, household furnishings, clothing, appliances, jewelry, cash and other liquid assets, health aids, and personal injury proceeds. It's beyond the scope of this article to outline every exemption, so see your lawyer for further details.
If you're considering filing for bankruptcy, consult with a bankruptcy attoreny in your area. They will be best equiped to advise you on the best cource os action.
