First-Time Guide to Filing for Bankruptcy
If you are filing for bankruptcy for the first time in South Carolina, the process follows a clear sequence with strict rules and deadlines. If you’re overwhelmed with medical bills, job disruptions, and rising housing costs, knowing the steps helps you avoid delays and protect your income and property.
When deadlines are approaching or collection activity is active, our Columbia bankruptcy attorneys at Reed Law Firm can help keep your case on track. Meanwhile, here’s a quick step-by-step guide for filing for bankruptcy.
Step 1: Take Stock of Your Debt and Income
Start by listing every creditor, balance, interest rate, and monthly payment. Include credit cards, medical bills, personal loans, past-due utilities, and any lawsuits or garnishments. Likewise, collect all recent bank statements, tax returns, and pay stubs. These will determine your eligibility and strategy when filing for bankruptcy.
Step 2: Seek Legal Advice From a Bankruptcy Attorney in Columbia About Your Options
First-time filings move fast and leave little room for error. A lawyer can evaluate your eligibility, prepare filings to local standards, coordinate the automatic stay, and communicate with trustees and creditors. Remember, speed and precision protect your paycheck and home when you’re facing foreclosure sales, repossessions, or garnishment.
Step 3: Choose The Bankruptcy Chapter That Fits Your Situation
Most first-time filers choose between Chapter 7 and Chapter 13. Chapter 7 can wipe out qualifying unsecured debt for people who meet the means test. Chapter 13 creates a court-approved plan to repay a portion over three to five years and can stop foreclosure or repossession.
Eligibility is dependent on your income, household size, and the type of debt. The U.S. Trustee Program explains that the means test screens for the ability to repay under Chapter 13. For instance, if you have a steady income but heavy arrears on a car note, you may use Chapter 13 to keep your vehicle and catch up over time.
Step 4: Complete an Approved Credit Counseling Course in Columbia
You’re legally required to do this before filing for bankruptcy. The certificate is filed with your petition, and skipping this step leads to the dismissal of your case. The counseling focuses on budgeting and alternatives, but it does not replace legal advice. That’s why it’s in your best interest to discuss your specific situation with a seasoned Columbia bankruptcy lawyer.
Step 5: Prepare and File Your Petition and Schedules
Your petition, schedules, and statements disclose income, assets, debts, recent transfers, and expenses. Accuracy matters because trustees review filings closely. Once filed in the U.S. Bankruptcy Court for the District of South Carolina, the automatic stay takes effect and stops most collection activity against you, including calls, lawsuits, garnishments, and repossessions, subject to certain statutory exceptions.
Step 6: Attend The 341 Meeting and Finish Your Education Course in Columbia
You will attend a brief meeting with the trustee, usually by video or phone. You must finish a debtor education course and file the certificate. Missing it can delay your discharge. Trustees serving the Columbia division expect complete documentation, so ensure to bring all relevant pay stubs, IDs, and bank statements.
Step 7: Receive Your Bankruptcy Discharge and Rebuild
If there are no objections, the court enters a discharge order. Qualifying debts are wiped out in Chapter 7 or addressed under the Chapter 13 plan. For instance, you can clear your medical debt and redirect your monthly payments to savings.
Connect With Our Bankruptcy Lawyers in Columbia
Bankruptcy has a structure. Following the steps and meeting every deadline protects your much-needed relief. If you’re considering a first-time filing in Columbia or anywhere in Richland County, our Columbia bankruptcy attorneys can help. To arrange your confidential case evaluation, reach Reed Law Firm online or call 803-726-4888.
