Chapter 7 bankruptcy allows individual consumers to wipe out most debts by having the U.S. Bankruptcy Court issue what is called a "Discharge of Debt." The main reason most people choose Chapter 7 instead of Chapter 13 bankruptcy is that Chapter 7 eliminates the need to pay back creditors for unsecured debt. In other words, you may be able to throw out those credit card statements and doctors' bills that have been piling up and never worry about certain monthly payments again.
Also known as liquidation bankruptcy, Chapter 7 has several rules and restrictions under South Carolina law. In particular, only certain people qualify, based on a method called the Chapter 7 means test. In general, if your income is less than the median household income, you qualify. However, there are many other factors that also need to be considered, including your disposable income and ability to repay some debts.
Our Chapter 7 bankruptcy attorneys can help you decide if this form of bankruptcy is the right one for you. We're familiar with how the process works in the United States Bankruptcy Court for the District of South Carolina. We can also help you fill out all the paperwork and meet all the strict deadlines on time. Helping people make a fresh start is what we do best.
This is the number one question people ask us when they contact our law firm about whether they should file for Chapter 7 bankruptcy. In most cases, yes, you can keep your home and your car.
If you qualify under Chapter 7, you can get rid of unsecured debt but won't lose your house or have your car repossessed. Chapter 7 means creditors will stop harassing you over the phone and your mailbox won't be full of those embarrassing red late payment notices.
Declaring Chapter 7 bankruptcy allows you to eliminate unsecured debt, which can give you a brand new start. It does not eliminate past due child support payments, however, nor most school loans, certain taxes and a few other types of debt. It is primarily for those overburdened by debt, with no other alternative. A Chapter 13 bankruptcy may be a better option if you have a lot of equity in real property or own other assets, such as motor vehicles, boats, furniture, electronics and appliances.
The reliable team at Matthews & Megna can clarify all the details of both options, and if you decide you want to file for Chapter 7 bankruptcy, we will be there with you, every step of the way. Call us today at (803) 799-1700 or contact us online for a free initial evaluation.
We are a debt relief agency. We help people understand their financial options and file for bankruptcy.