What is a Bankruptcy Petition?
A bankruptcy petition is a special legal document filed with the local South Carolina bankruptcy court requesting protection from harassing creditors and relief from unmanageable debts. Once filed, the automatic bankruptcy stay protects you from continued collection efforts and gives your family the breathing space needed to consider your financial options.
An experienced Florence bankruptcy attorney at Reed Law Firm, P.A. can explain your rights and help you prepare and file the appropriate bankruptcy petition. Call (803) 726-4888 or contact our South Carolina debt relief team online to schedule a confidential consultation.
Overview of Federal Bankruptcy Petitions
Your ‘petition’ is the legal document electronically filed with the United States Bankruptcy Court for the District of South Carolina that opens your debt relief case. The lengthy document and attachments, which an experienced local bankruptcy law firm can complete for you, generally request the following information:
- Personal identifying information
- Prior bankruptcy history
- Income and employment information
- Assets and valuables
- Monthly family expenses
- Business information
- Military service
- Creditors’ contact information and account numbers
- List of debts
The petition also strongly urges petitioners to meet with an attorney before filing for bankruptcy to discuss the potential consequences, benefits, and bankruptcy alternatives.
Understanding the Legal Impact of Bankruptcy Filings in Florence
Once you sign and file your bankruptcy petition with the court – generally electronically with attachments – you’re ultimately requesting debt relief. You’ll immediately receive a case number with proof of filing, which your attorney can help you submit to creditors, collections agencies, and other court officials. The petition triggers the automatic bankruptcy stay as soon as it’s filed. This immediately stops all lawsuits, collection attempts, wage garnishments, and foreclosures – giving the court time to consider your eligibility and relief request.
Choosing the Right South Carolina Bankruptcy Petition
Although the petition is generally the same, you must file for the right type of bankruptcy under federal law. Individuals and small business owners often choose from the following options:
Chapter 7 Liquidation
This traditional bankruptcy requests the complete liquidation of all non-exempt assets to pay debts, followed by the discharge of all remaining eligible debts. This often includes credit cards, mortgage and vehicle deficiencies, personal injury judgments, past due rent and utilities, medical bills, personal loans, and even student loans in cases of extreme hardship. Both individuals and businesses may file for Chapter 7 liquidation, but they must pass a ‘means test’ or prove their income is below the state median.
Chapter 13 and Chapter 11 Repayment Plans
Individuals with sufficient income may file for Chapter 13 wage earners’ bankruptcy, which restructures their debts into a manageable monthly payment plan based on their income and expenses. The court may then forgive the remaining debts after plan completion. Small businesses can also request reorganization and repayment under Chapter 11. The benefits of these plans are that individuals may keep their homes and vehicles, and businesses may remain open while enjoying bankruptcy protections.
Florence, S.C. Bankruptcy Petition Lawyers
Our experienced bankruptcy eligibility attorneys in Florence can help you understand your options, perform any necessary income and debt calculations, and petition for the right type of bankruptcy in South Carolina. Discuss the legal benefits and consequences of petitioning for bankruptcy with our dedicated debt relief team today by calling (803) 726-4888 or connecting with us online.
