Most Commonly Asked Bankruptcy FAQs in Myrtle Beach
The stigma of filing bankruptcy in today’s society can halt some people from learning more about the process, even if it would benefit them and their family. The majority of that stigma comes from not fully understanding what bankruptcy is and how it is used. To help halt the belief that bankruptcy is bad or only used to evade paying debts, we’re explaining the basics of how to file bankruptcy. As Myrtle Beach bankruptcy attorneys, we understand the decision can be intimidating, but we’re here to walk you through the process.
Q) What Is Bankruptcy?
A) People and businesses are protected by the federal bankruptcy court while repaying debt throughout the bankruptcy process. The idea of filing allows good people to clear their debt, or set realistic goals of paying that debt, without allowing creditors to seize belongings or constantly harass the borrower.
Bankruptcy is usually classified in two ways: liquidation and reorganization. Chapter 7 bankruptcy is often described as liquidation and Chapter 13 bankruptcy is more of a reorganization. See all Myrtle Beach bankruptcy options and descriptions click here
Q) What’s The Difference Between Chapter 7 and 13 Bankruptcy?
A) One of the most common questions received as a Myrtle Beach bankruptcy lawyer is related to the differences between filing Chapter 7 and filing Chapter 13 bankruptcy. The major difference is that Chapter 7 calls for a minimum number of your belongings to be sold as payment toward your debts. Nearly everything you own can be kept when filing Chapter 7 bankruptcy while debts under a credit card or medical bills are wiped out.
Chapter 13 bankruptcy is often called “wage earner” bankruptcy. Your income – whether from a traditional salary or Social Security – will be considered when deciding how much you can repay to creditors. Secured debts fall under Chapter 13, which offers the chance to make up missed payments to avoid repossession or foreclosure. Compare all Myrtle Beach bankruptcy options and descriptions click here
Q) Should I File Chapter 7 or 13 Bankruptcy?
A) Your income level and housing expenses will greatly determine if you should file Chapter 7 bankruptcy or Chapter 13. As your Myrtle Beach bankruptcy lawyers, we’ll walk you through the options, but an easy way to determine which is best is to subtract your monthly expenses from your monthly income. If your normal monthly expenses are equal to or greater than your normal monthly income, you’ll likely file a Chapter 7. With a zero-balance income, you’ll have no cash to put towards payments typically decided in Chapter 13 bankruptcy.
Q) How Much Does It Cost To File Bankruptcy?
A) The United States Bankruptcy Court District of South Carolina reports it cost $335 to file Chapter 7 bankruptcy and $310 to file Chapter 13. These fees are paid to the Clerk of Court and do not include legal fees. The filing fee may be waived only in very limited circumstances and with court approval.
Q) How Long Do Bankruptcy Cases Take?
A) Again, the details will depend on which chapter bankruptcy you file for. Chapter 7 bankruptcy cases usually take three to six months. Chapter 13 bankruptcy cases, which include a repayment plan, can take three to five years.
Q) How Long Does A Bankruptcy Stay On My Credit Report?
A) Credit reporting agencies have the option to document the bankruptcy for up to 10 years.
Local Myrtle Beach Bankruptcy Attorneys
If you have additional questions, call us today and make an appointment for a private consultation. We have an office in Murrells Inlet and downtown Myrtle Beach to serve you. Call 843.448.4246 to schedule your bankruptcy consultation today!