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If medical bills, unemployment, underemployment, failed business ventures, or divorce leave you with an overwhelming amount of debt, bankruptcy may be the lifeline you need. A Gaffney bankruptcy lawyer from our firm can help you understand the type of bankruptcy that applies to your case, the filing process, and the financial benefits that bankruptcy can provide.
At Farmer & Morris Law, PLLC, our South Carolina bankruptcy lawyers understand what you’re going through, and we’re here to support you during the process. There is no shame or embarrassment in filing for bankruptcy. It exists to help individuals, small business owners, and corporations alleviate the stress, frustration, and anxiety associated with overwhelming debt loads.
Types of Bankruptcy You May Qualify for in Gaffney
Although bankruptcy offers the opportunity to eliminate overwhelming debt and start building a new financial future, there are different types of bankruptcy, each with its own set of qualifications and requirements. According to the United States Bankruptcy Court – District of South Carolina, these include Chapters 7, 11, 12, and 13.
Chapter 7 Bankruptcy
Filing for Chapter 7 requires the applicant to list all assets, regardless of their type. Non-exempt assets can be liquidated to pay off as much of their debt as they can. This may sound scary, but individuals who file Chapter 7 bankruptcy typically do not have non-exempt assets. In such cases, all qualifying debts are discharged, and applicants can retain all their assets.
Chapter 7 bankruptcy also does not have any debt limitations to comply with. At the end of the filing process, all qualifying debt is discharged.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy allows individual and corporate debtors to restructure their financial affairs and reorganize their debt. With this option, they are often able to retain control of their assets and, in some cases, can convert to Chapter 7 bankruptcy. Like with Chapter 7 bankruptcy, there is no debt limit when filing Chapter 11 bankruptcy.
Chapter 12 Bankruptcy
Chapter 12 bankruptcy is reserved for family farmers and fishermen. While it does have certain debt limitations, individuals who file for Chapter 12 bankruptcy can negotiate a favorable repayment plan for their debt load. A court-appointed trustee will oversee and assist with debt repayment and farming operations.
Chapter 13 Bankruptcy
Those who file for Chapter 13 typically have steady income but overwhelming debt. As such, they can maintain their property and set up a manageable payment plan based on anticipated future earnings. Once the court approves a repayment plan, debts that cannot be fully discharged are paid gradually, and many previously defaulted debts are relieved.
Which Bankruptcy Chapter Is for You?
The debt load and income of individuals, small business owners, corporations, and farmers might mean each qualifies for more than one type of bankruptcy. One of our Gaffney bankruptcy attorneys can analyze your situation, resources, and filing status (e.g., whether you are filing as an individual or a business) to determine which chapter is best for you.
Know Which Debts Are Dischargeable With Bankruptcy
Dischargeable debts are those the court can eliminate. After a bankruptcy discharge, you are absolved of legal responsibility for the discharged debt and never have to pay it back.
Some types of bankruptcy involve non-dischargeable debt that the court cannot eliminate. These debts vary from case to case and might include:
- Spousal support after a divorce
- Child support payments
- Certain types of tax debt
- Student loan debt
- Restitution and other payments ordered by a criminal court
It can be challenging to determine which debts are dischargeable and which are non-dischargeable. Our team can work hard to help you understand the difference and pick the bankruptcy chapter that covers the debt categories you are struggling with.
Benefits of Bankruptcy Protection
Being in debt is a stressful experience. Although filing for bankruptcy can also be an emotionally difficult decision, it can provide a tremendous sense of liberation if you have exhausted all your non-bankruptcy options. The U.S. Courts maintain that:
- Discharged debts are no longer your responsibility.
- Debt collection efforts must stop once creditors are notified that you have begun bankruptcy proceedings.
- Debt collection, phone calls, and letters must also stop.
If you are ready to experience the personal, financial, and stress relief of bankruptcy, our team can help you get started on the process of filing for bankruptcy.
Are There Alternatives to Bankruptcy?
As our team can explain further, bankruptcy is not the only option for people struggling with debt. Some people may benefit more from one of the alternatives listed below, which our team can review with you if they are relevant to your situation.
- Debt counseling or education
- Negotiating with creditors
- Staying the course/doing nothing at this moment
Important Items to Have When Filing for Bankruptcy
When filing for bankruptcy, preparation is essential to ensure your case proceeds smoothly. Whether you’re struggling with credit card debt or home foreclosure, there are essential documents you need. Here are the most important items and documents you should gather beforehand:
- Personal Identification: Government-issued photo ID (e.g., driver’s license or passport).
- Income Documentation: Including pay stubs from the past 6 months, tax returns for the last 2 years and documentation of any additional income (self-employment, rental, alimony, etc.).
- Asset Information: Including titles to vehicles, real estate deeds, and retirement account statements, as well as recent bank statements (checking, savings, investment accounts) and valuations for high-value items.
- Debt Records: Include all debts, including credit card and loan statements, collection notices, legal judgments, medical bills, and utility arrears.
- Monthly Expense Records: Such as rent or mortgage statements, utility bills, insurance premiums, childcare expenses, and any other recurring expenses.
- Legal Documents: Including copies of any existing lawsuits, garnishments or liens; any divorce decrees or child support orders are also important to show.
Having these items readily available helps your attorney complete your bankruptcy petition accurately and supports a more efficient review by the court and trustee. Your Gaffney bankruptcy attorney can ensure all required documentation is properly submitted.
Meet Our Gaffney Bankruptcy Attorneys
Our bankruptcy lawyers possess the education, experience, and personal dedication to assist South Carolina residents and businesses throughout the bankruptcy process. They and their teams can offer the support you need during this challenging time.
Sharon, one of our former bankruptcy clients, was “very satisfied” with our services and how we provided “understanding without judgment” while managing her case. We would now like to do the same for you.
Get Help Completing the Bankruptcy Filing Process
A bankruptcy lawyer who serves Gaffney, South Carolina, can make the process easier to understand and complete. In South Carolina, the filing process includes:
- Collecting and completing all necessary forms
- Compiling a list with the names and contact information of each of your creditors
- Understanding and selecting the right bankruptcy chapter
- Choosing the right filing location to which you should mail or personally deliver the required forms
- Paying the fees that apply to the type of bankruptcy you file
- Designing a repayment plan that your creditors and the court approve (in most chapters)
- Offer legal advice and answer your questions
- Stop creditor harassment
In addition, you attend court hearings, submit tax returns, complete financial management classes or counseling sessions, and wait for the final discharge of your debts or approval of your repayment plan. Our team can help you navigate this process, understand and complete all necessary forms, and keep you informed about your bankruptcy status at every step of the journey.
Contact Our Gaffney Bankruptcy Lawyers to Begin the Process Today
Overwhelming debt can feel insurmountable. That is why we work so hard to provide financial relief to Gaffney-based businesses and individuals who simply need a chance to start anew. We work with you to solve this legal issue as smoothly and efficiently as possible. Read our testimonials to learn more about how we’ve helped others.
When you are ready to give yourself a new financial start, contact Farmer & Morris Law, PLLC. The Gaffney bankruptcy lawyers at our law firm can help you get started on the road to financial recovery.
