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Bankruptcy

Bankruptcy is a court-supervised legal process that helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.

In South Carolina, as in all states, bankruptcy is governed by federal law, specifically the U.S. Bankruptcy Code. Individuals and businesses in South Carolina can file for bankruptcy under Chapter 7 (liquidation), Chapter 13 (reorganization for individuals), or Chapter 11 (reorganization for businesses), among others. Chapter 7 allows for the sale of non-exempt assets to pay off creditors, while Chapter 13 and Chapter 11 involve creating a repayment plan to pay back debts over time. South Carolina has its own set of exemptions that determine what property can be kept during a Chapter 7 bankruptcy. These exemptions include equity in a home, personal property, and tools of the trade, among others. The process is handled in the federal bankruptcy courts located in South Carolina, and debtors are often required to complete credit counseling. The goal of bankruptcy is to provide a fresh start for the debtor while ensuring fair treatment to creditors.

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State Statutes

adversary proceeding assumption of contracts, leases automatic stays

Chapter 11 bankruptcy Chapter 12 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy — confirmation hearing Chapter 13 bankruptcy — disposable income Chapter 13 bankruptcy — eligibility Chapter 13 bankruptcy — repayment plan Chapter 7 bankruptcy Chapter 7 bankruptcy — changing trustee Chapter 7 bankruptcy — conversion to chapter 11, 12, or 13 Chapter 7 bankruptcy — discharge Chapter 7 bankruptcy — eligibility Chapter 7 bankruptcy — means test Chapter 7 bankruptcy — no assets cosignors courts creditor claims — secured, unsecured, priority

debtor in possession

estate exemptions

hardship discharges homestead exemption

involuntary bankruptcy

liquidation

nondischargeable debt nondischargeable debt — alimony nondischargeable debt — child support nondischargeable debt — fraud nondischargeable debt — student loans

petition preferential transfer priority debt proof of claim

reaffirmation of debt reorganization plan

section 341 meeting of creditors statement of financial affairs

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Bankruptcy

Individual & Family Legal Plan

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South-Carolina State Code

South-Carolina State Code

Bankruptcy

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