What is Bankruptcy?

The Bankruptcy Process in South Carolina

What to Expect

No one wakes up overnight and decides to file for bankruptcy. Most people have spent hours thinking about filing for bankruptcy. It can be a scary process. The best way to understand if the process is right for you is to meet with a bankruptcy attorney.  How can you know if this is the right option for you? What will happen to your credit score? Will you ever be able recover financially? The Howze Law Firm LLC can provide the guidance you need during this time by explaining the process and how it would affect you individually. Bankruptcy may not be the best option for everyone. You don’t need a sales pitch. It is important to have someone evaluate your situation and help you determine what is best for your situation.

What Is Bankruptcy?

Bankruptcy is a legal process by which a debtor (someone owing money) can file for court protection from creditors seeking repayment of debt. You should not feel that you have done something wrong if you are considering a bankruptcy. Sometimes things happen in life that cause debtors to get behind in bills. Most debtors have tried everything they can to fix things themselves before they consider filing for bankruptcy.

Bankruptcy is a legal process that involves the court process.  Debtors and Creditors are protected in the process and both are treated fairly. The court must review your petition and decide whether your case has merit to proceed, just like any lawsuit. There are court hearing(341 hearing in Chapter 7)and the Plan and Confirmation Hearing for Chapter 13 bankruptcies. Creditors can participate in the process as well.

Understanding the Types of Bankruptcy

Chapter 7 bankruptcy is the preferred petition for people wishing to discharge their unsecured consumer debts, such as credit card debt, medical debt, and personal loans. Unlike what most people think, everyone does not qualify for a Chapter 7. Petitioners must complete a means test to determine if Chapter 7 will be permitted. If a debtor has disposable debt and they can make payments toward their debt they may have to do a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy which allows the petitioner to consolidate all debt, including student loans and government debt into a monthly payment plan, supervised by the court. Chapter 13 debt consolidation is typically a three or five-year plan that can save the petitioner thousands of dollars in total repayment.

Talking to a bankruptcy attorney can help you decide which option is best for you. Don’t hesitate to call The Howze Law Firm LLC for your free bankruptcy consultation at 803-266-1812.