Can I File For Bankruptcy Without a Lawyer in South Carolina?
Hiring a bankruptcy lawyer is not as expensive as most people fear and that a good bankruptcy lawyer will usually save you a lot more money than it costs by reducing your monthly debt repayment. This does not include the fees to enroll in the required credit counseling course, to obtain copies of your financial records, and other fees if litigation is involved.
While you may feel that forgoing representation will save you money, it will most likely cost you thousands of dollars in the long run. In this blog, the Columbia, SC, bankruptcy lawyers at Reed Law Firm discuss the disadvantages of filing pro se.
What Type of Bankruptcy is Right for Me?
Even if you are considering hiring representation (which you should), it is important that you understand the two types of bankruptcy that most individual debtors file. Below, we provide an overview.
Chapter 7
Chapter 7 bankruptcy may be the right choice for you if you want to discharge your debts and start anew. In Chapter 7, assets are liquidated to pay off creditors. If your debt is mostly consumer debt, then your eligibility will be based on your income.
If your current monthly income is greater than the state median, then you will be required to pass the means test. If you make less than the state’s median income (as of November 2024, $59,869 for a single earner in South Carolina), then you may qualify under Chapter 7. If more than half of your debts are business debts, then you will automatically be eligible to apply for Chapter 7, bypassing the means test.
Chapter 13
If your income is above the state median, you may consider filing for Chapter 13 bankruptcy. Chapter 13 is coined the “wage earner’s plan,” allowing individuals to repay a portion of their debts as determined by a judge. This type of bankruptcy can allow you to combine your debts into a manageable monthly payment by detailing a repayment plan called a Chapter 13 Plan.
However, there is a debt limit, which is $465,275 in unsecured debts and $1,395,875 in secured debts (as of June 21, 2024). This type of bankruptcy may also be the best choice if you have significant assets that you would like to protect. However, if your debt is in excess of the current thresholds, you will likely need to consider a Chapter 11 filing or other debt relief options.
The downside of Representing Yourself
If you choose to file pro se or represent yourself, you may miss important deadlines or fail to file all the appropriate court forms in your bankruptcy case. The cost of hiring a bankruptcy attorney will depend on the complexity of your case, but at Reed Law Firm, we will work with you to make sure that any attorney fees do not break the bank. Given your financial situation, we feel that the last thing we want to do is place any additional burden on your shoulders. If you are worried about paying attorney fees, our legal team is happy to discuss your concerns.
Columbia, SC, Bankruptcy Lawyers Navigating the Complexities of the Bankruptcy Process
At Reed Law Firm, helping you get out of debt is our primary mission. If you are currently dealing with extreme debt, our Columbia, SC, bankruptcy attorneys would like to hear from you. Let’s work together to help clear your consumer or business debt so that you can begin your journey on the road to financial relief. To schedule your free consultation, contact us online or give us a call today.
