Questions and Answers about Bankruptcy Chapter 7 and 13.
1. Q: What is Bankruptcy?
A: Bankruptcy is a legal process that allows one to protect their assets and prioritize or eliminate payments to creditors.
2. Q: What is a chapter 7 Bankruptcy?
A: Chapter 7 bankruptcy is filed to eliminate all debt.
3. Q: What if I want to continue to pay some of my debts such as my home and car.
A: You can agree to continue to pay (reaffirm) certain debts either informally or formally (a new written contract) under the same terms (or in some cases better terms) as before in a Chapter 7 Bankruptcy.
4. Q: What is the purpose and theory of bankruptcy? Can I just file bankruptcy when I no longer wish to pay my creditors?
A: The idea and purpose behind bankruptcy is to prevent a piecemeal dismantling of the Debtor's estate or assets. If there are any assets or property that are not essential (i.e. very expensive luxury items) for the debtor's livelihood or health, bankruptcy provides a plan to fairly divide the property for the benefit of the creditors. If you have enough money to pay your debts you will not be accorded the protection of a bankruptcy discharge which is the legal forgiveness of one's debts.
5. Q: How do I know if I need bankruptcy protection?
A: Signs that bankruptcy may protect you or be beneficial to you and/or your family include:
(i) Paying credit cards and finance companies becomes so burdensome that obligations on one's home and vehicles become delinquent.
(ii) Inability to pay utilities. (If you are writing checks to your creditors in the dark, it is time to consider bankruptcy protection).
(iii) Loss or danger of loss of essential property such as a car or even your home.
(iV.) Lawsuits are being filed and served seeking to place judgments on your property.
(v) You tax refund is being intercepted (for anything other than student loans) or your wages are being garnished for Federal or State Taxes.
(Vi) You are unable to drive because your drivers license was suspended for a car accident case where insurance coverage , if any, covered only a portion of the damages.
6. Q: What will I lose or what can I keep if I declare bankruptcy?
A: For almost all individuals, no personal property is jeopardized. Your homestead (in South Carolina) is also protected up to $56,000.00 + in value above and beyond any mortgages or liens for an individual; $112,000.00 + for a couple. For a further explanation follow this link:_http://www.paulheldsumtersc.com/bankruptcy.html
Q: What if I am behind on my house? What if I am in foreclosure?
A: A chapter 13 bankruptcy may help in this situation; for instance if you are behind in your mortgage payments by $10,000.00, a chapter 13 bankruptcy plan could allow you to pay as little as $187.00 per month (in addition to regular mortgage payments) over 5 years to catch up on the payments.
Q: What if I am behind on my car payments or my vehicle has been repossessed?
A: A chapter 13 bankruptcy can help you retrieve your vehicle if filed within the redemption period. Also in most cases your payment in a Chapter 13 will be lower.
For more information click here_
For Appointments Call (803) 775-6669 or (803) 233-3431 or click here_
138 N Main Street Sumter SC 29150 (Across from old Sumter County Courthouse)
We are a debt relief agency. We file bankruptcy for individuals under the United States Bankruptcy Laws.
Admitted United States District Court 1986
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