Bankruptcy proceedings have become everyday occurrences as a result of economic downturns and folks living in South Carolina are particularly vulnerable due to massive numbers of foreclosures throughout the state. If — after considering all options available to you — you come to the conclusion that bankruptcy is your only solution, your best course of action is to contact an attorney. But perhaps a lawyer is beyond your means. You still have legal recourse by filing your own bankruptcy papers online. Whether you seek protection under chapter 7 or 13, this complex process requires time and patience, but if it’s your only choice, this article can get you started.
What You Should Know
According to a Myrtle Beach Sun News article, South Carolina residents have filed the largest number of bankruptcies on record since federal laws were tightened in 2005. Like other states, SC bankruptcy actions are divided between home and business owners. The Mortgage Bankers Association, a nonprofit organization tracking U.S. default statistics, ranks South Carolina 18th in the nation for foreclosures and that figure is driving the state’s bankruptcy spike.
Once you file paperwork to establish either Chapter 7 or 13 protections, creditors are notified and they are thereafter legally prohibited from contacting or harassing you. Should creditors continue to dog you, contact the South Carolina Attorney General’s office (www.scag.gov/) and file a complaint. That said, be aware of the fact that bankruptcy proceedings can have a devastating affect on future credit. On average, it takes seven years to regain one’s credit standing, so be prepared to live in a cash-only world for the foreseeable future.
Even if you file for bankruptcy protection without an attorney’s help, you don’t have to go it alone. Consumer Credit Counseling Services, headquartered in Columbia, employs advisors to help consumers wade through bankruptcy filings and there is no charge for their help if you’re a South Carolinian. Obtain additional direction and advice from the South Carolina Bar Association (scbar.org/PublicServices.aspx). They may offer to refer you to an attorney willing to donate her services pro bono so you don’t have to file yourself.
Chapter 7 bankruptcy discharges all debt while allowing you to keep some of your assets. A South Carolina resident can shelter $5,000 in cash, $1,000 worth of jewelry, home furnishings valued at $4,000, tools worth $1,500 and an automobile appraised at $5,000. If a couple files for this form of bankruptcy, the aforementioned figures double under Chapter 7. Alternately, file for Chapter 13 protection if you want to repay your debt in the future. This option, often referred to as debt restructuring, sets up a court-mandated, monthly payment schedule subject to legal oversight.
How to Proceed
Search the Internet for websites offering bankruptcy assistance or purchase software to undertake the paperwork that shows you how to file online. These programs and websites walk consumers like you through self-filing bankruptcy procedures using prompts, step-by-step directions and downloadable legal forms. Some of the companies and sites you may wish to consider are Standard Legal, Socrates, MegaDox, US Legal Forms, Find Legal Forms, LegalMatch and LegalZoom.
Closely evaluate each software/website’s features. Ask yourself these questions before you purchase or commit: Are the software, forms and instructions written and/or approved by a licensed attorney? Will the program work with both PC and Mac platforms? Are there hidden fees not associated with the purchase of the software or site service? Does the program or site offer phone or online help from professionals able to talk you through confusing directions if you get stuck? Finally, get assurances, in writing, that the software you have chosen is legally accepted by the state of South Carolina for online bankruptcy filing.
Prepare to complete these forms when filing for bankruptcy in South Carolina: a voluntary petition of bankruptcy, real property and personal property statements, lists of exemptions, secured debts, priority debts and unsecured non-priority debts. You will be asked to provide contracts or lease verification and co-debtor data. Additionally, you must fill out detailed income and expense sheets and forms that list your creditors. A separate agreement gives you the option to set up monthly payments if cash is so short you can’t cover your filing fees. You will also be required to complete a statement of intention if you choose Chapter 7 protection.
Reference:
- www.nolo.com/legal-encyclopedia/filing-bankruptcy-south-carolina.html
- www.fsisc.org/topic.asp?pid=14
- www.legalconsumer.com/bankruptcy/filing-bankruptcy.php?ZIP=29407
