What Documents Do I Need to File for Bankruptcy in South Carolina?
Declaring bankruptcy can be stressful and time-consuming, but it is necessary if you cannot afford to pay off your debt. Bankruptcy allows debtors to get creditors off their backs and eventually restore their credit. Most individuals file under Chapter 7 or Chapter 13. Before filing a bankruptcy petition, you will need to gather several documents to submit to your attorney to review your financial situation. If you are planning on filing for bankruptcy, our Columbia, SC, bankruptcy attorneys are here to guide you each step of the way.
Chapter 7 Bankruptcy
If you file under Chapter 7, you can sell your assets to pay back creditors, with many individuals keeping their homes and cars. If more than 50% of your debts are non-consumer (business debts), then you will automatically qualify under Chapter 7. However, if more than 50% of your debt is consumer debt, then you will need to pass the means test. If your income is above the median income for the state, then you will most likely not qualify under Chapter 7. (As of November 2024, the median household income in South Carolina is $59,869 for a single earner).
Chapter 13 Bankruptcy
Coined a “wage earner’s plan,” Chapter 13 allows individuals to restructure their debt into a manageable monthly payment. Eligibility will depend on you earning a regular income and meeting the debt thresholds for secured debt (i.e., car loans and mortgage) and unsecured debt (i.e., medical bills, student loans, and credit cards). As of June 21, 2024, you must have less than $465,275 in unsecured debts and $1,395,875 in secured debts to qualify under Chapter 13. If you are in excess of these amounts, our bankruptcy lawyers can help you explore different options.
Due at the Time of Filing
The following documents must be submitted when filing for Chapter 7 and Chapter 13 pursuant to the Federal Bankruptcy Code:
- Voluntary Petition for Individuals Filing for Bankruptcy
- Initial Statement About an Eviction Judgment Against You (if applicable)
- Statement About Your Social Security Numbers
- Statement Pursuant to Local Rule 1073-2(b)
- Certificate of Credit Counseling and Debt Repayment Plan
- List of creditors (Certified by Attorney or yourself, if electing to self-represent)
- Creditor Matrix Pursuant to Local Bankruptcy Rule 1007-3
- A $338 filing fee for Chapter 7 and a $313 filing fee for Chapter 13
A Columbia, SC bankruptcy lawyer will assist you in filling out the appropriate paperwork so that your case moves smoothly. If you fail to submit the appropriate forms, you risk having your case dismissed. Working with an attorney will help streamline the process and ensure that you mitigate as much debt as is feasible.
Other Documentation Due Within 14 Days of Filing
In addition to the above court forms, you will need to submit supporting paperwork encompassing:
Identification
You must submit your driver’s license or other form of state-issued ID. Additionally, you will most likely have to supply your social security card.
Proof of Income
You will need to submit paystubs, profit and loss statements (if self-employed), workers’ compensation, unemployment benefits, or disability benefits. Copies of current pay statements received within 60 days of your filing may also need to be remitted.
Tax Returns
If you file under Chapter 7, you may need to submit federal and state tax returns with tax periods ending two years from the date of your bankruptcy filing. If you file under Chapter 13, you will need to submit all federal tax returns with tax periods ending within four years of your filing.
Property
You will need to list the property you own, property that is exempt from bankruptcy, and if any creditors have secured claims against any of your property. You will also need to provide documentation of checking accounts, savings accounts, investment accounts, retirement accounts, and life insurance policies in your name.
Debts
You will need to submit bills, creditor statements, collection letters, and other notices related to your debt. This paperwork will be compared to the List of Creditors form that you submitted to the court.
Certificate of Credit Counseling
You must complete a Credit Counseling class at least 180 days prior to filing for bankruptcy and provide proof of completing the course.
Reach Out to Our Columbia, SC, Bankruptcy Attorneys Today
Credit card debt and medical bills can come at you all at once, giving you a stark reality of how much you owe to creditors. Thankfully, the legal team at Reed Law Firm has successfully helped thousands of individuals such as yourself climb their way out of the “debt hole.” Our Columbia, SC bankruptcy lawyers are dedicated to helping clients achieve success in reducing or eliminating debt. To learn more or arrange your free consultation, contact us online or give us a call at your earliest convenience.
