You can discharge most debts when you file for either Chapter 7 or Chapter 13 bankruptcy in South Carolina. There are just some debts that you can’t discharge regardless of which chapter of bankruptcy you file. If you’re considering filing for bankruptcy, it’s in your best interest to speak to a South Carolina bankruptcy lawyer. Determining which chapter to file is crucial to ensuring that you can discharge the specific debts you are struggling with.
What Exactly is a Bankruptcy Discharge in South Carolina?
The court orders a bankruptcy discharge to erase all the debtor’s qualifying debt. Most people file for bankruptcy to get this discharge. If your case proceeds without any issues, such as fraud or a creditor successfully objecting to your case, you will get a discharge after meeting the court’s requirements.
In most cases, debtors obtain their discharge four months after their Chapter 7 bankruptcy filing date and weeks after the conclusion of their Chapter 13 repayment plan. That means you will no longer be on the hook for the debts discharged once you obtain a bankruptcy discharge. In addition, your creditors will be prohibited from contacting you, sending demand letters, suing you, reporting you to credit reporting agencies, or conducting other debt collection activities.
What Debts Can I Discharge in a Chapter 7 or Chapter 13 Bankruptcy in South Carolina?
You can discharge these debts when you file for Chapter 13 or Chapter 7 bankruptcy:
- Medical bills
- Credit card bills, including late and overdue fees
- Most motor vehicle accident claims
- Deficiency balance from repossession
- Utility bills
- Collection agency accounts
- Personal loans from employers, friends, and family
- Certain civil court judgments
- Business-related debts
- Unpaid rent owed under rent contracts
- Most legal fees
- Overpayments from government programs, such as VA programs, Social Security, and other welfare programs
- Old unpaid taxes and tax penalties
Utility providers also can’t deny you service when you file for bankruptcy. However, they can charge you a deposit to help ensure that you pay them in the future.
Keep in mind that any dischargeable debt associated with fraud or misconduct can turn into a non-dischargeable debt. Also, take note that these are general dischargeable debts, so it’s best to talk to a South Carolina bankruptcy attorney to ensure that the specific debts you need to discharge can be discharged.
Debts You Can Only Discharge in a Chapter 13 Bankruptcy
Some people opt to file for Chapter 13 bankruptcy instead of Chapter 7 because they can discharge certain debts that are not dischargeable in a Chapter 7 bankruptcy. These debts include:
- Any debt sustained to pay for non-dischargeable taxes
- Malicious and willful damage to property
- Specific debts related to a separation or divorce property settlement
- Government penalties, forfeitures, and fines
- Liens that have been crammed down or stripped
- Debt from a dismissed bankruptcy case
Discuss Your Case With Our Experienced South Carolina Bankruptcy Lawyer
The best way to find out which debts you can discharge and how you can protect your assets when you file for bankruptcy is to consult with our South Carolina bankruptcy lawyer. Reach out to Reed Law Firm and arrange your free case review with our South Carolina bankruptcy lawyer by filling out our online form or dialing 803-726-4888.
