It depends on your specific situation. The better order depends on the couple’s property, debts, income, support obligations, and whether either spouse already has a bankruptcy case pending. For example, a couple with substantial joint credit card debt and little marital property may have different concerns from a couple who owns a home with significant equity. Filing bankruptcy can also change how property is treated, so the timing should be considered before either spouse transfers or divides major assets. Additionally, the situation can change depending on whether one spouse or both spouses plan to file for bankruptcy.
When a spouse files for bankruptcy, certain property interests may be included in the bankruptcy estate. This can include the debtor’s interest in a home, vehicle, bank account, investment, business interest, or other property owned when the bankruptcy case begins.
South Carolina divorce law separately addresses marital property and equitable division. Unde S.C. Code § 20-3-620, the Family Court considers factors such as each spouse’s income, earning potential, property, debts, support obligations, and tax consequences when dividing marital property. That can create complications when the same home, vehicle, bank account, or other asset is involved in both cases.
Usually, no. The automatic stay generally doesn’t prevent a South Carolina Family Court from continuing a divorce, deciding child custody, or establishing or modifying a domestic support obligation. However, the stay can affect property division issues when the divorce proceeding seeks to divide property that is part of the bankruptcy estate. This means that your family court case may continue while a bankruptcy case is underway, but the bankruptcy can still affect how certain property issues are handled.
Bankruptcy generally doesn’t eliminate child support or alimony obligations. Domestic support obligations receive special treatment under federal bankruptcy law, and certain other debts created through a divorce or separation may also survive bankruptcy. A credit card balance doesn’t necessarily receive the same treatment as a support obligation or another debt assigned through a divorce.
A divorce order can assign responsibility for a debt between spouses, but that doesn’t necessarily change the creditor’s rights against a spouse who remains jointly liable. For example, a divorce agreement might require one spouse to pay a joint credit card. If the spouse who agreed to pay the debt later files for bankruptcy, the creditor may still pursue the other spouse if that spouse remains legally liable on the account. Review joint debts before you finalize property and debt division issues.
Before filing bankruptcy or signing a divorce agreement, make a complete list of:
Do not transfer, sell, give away, or divide significant property simply to change what appears in either case. Consider discussing major transactions with our Florence bankruptcy lawyers before acting.
Bankruptcy and divorce can involve the same home, accounts, vehicles, debts, and income, but each legal case follows different rules. If you’re dealing with both, our Florence bankruptcy lawyers can assess the bankruptcy and divorce issues together and explain how a filing may affect your property, debts, and financial agreements. Book your confidential case evaluation by contacting Reed Law Firm online or at 843-679-0077.
]]>If you’re wondering what will happen to your tax refunds during bankruptcy, consider reaching out to Reed Law Firm. Our bankruptcy attorneys in Columbia can review your refund and financial records before you file and help you understand how the money may be treated in your case.
Yes. A tax refund can become part of the bankruptcy estate if it represents an interest you had when the case began. 11 U.S.C. § 541(a) generally includes a debtor’s legal or equitable interests in property as of the bankruptcy filing. For example, if you file Chapter 7 in February and later receive a refund based on income earned during the previous tax year, the trustee may have a claim to some or all of that refund.
Possibly. The key question is whether an exemption protects your refund. Under S.C. Code § 15-41-30(A)(5), a debtor who doesn’t claim the homestead exemption may exempt up to a certain amount in qualifying cash and liquid assets, including refunds. Other exemptions may also apply depending on your circumstances. Your refund should be reviewed alongside the rest of the property you’re claiming as exempt, rather than assuming the entire refund is protected or unavailable.
In Chapter 13, you generally keep your property while making payments under a court-approved repayment plan. Your tax refund may affect how much you must pay through that plan, depending on your income, expenses, and the terms of the plan. Also, Chapter 13 plans generally must provide for the payment of projected disposable income to unsecured creditors. A tax refund may affect that calculation or the amount paid under a particular plan.
Yes. The timing of the filing can affect how your refund is treated. A refund connected to income earned before bankruptcy may become part of the estate. A bankruptcy filed during the tax year can create a more complicated calculation because some of that year’s income may have been earned before filing and some afterward. For instance, if you file bankruptcy late in the year, your eventual refund may relate partly to income earned before filing. The trustee may need to determine what portion belongs to the bankruptcy estate.
Don’t transfer or give away a refund to keep it out of your bankruptcy case. Unusual transactions before filing can raise questions about where the money went and why it was used. If you receive a refund and spend it before filing, keep records showing how you used the money. If you need to spend it on ordinary living expenses or another legitimate need, consider discussing the situation with our Columbia bankruptcy lawyers first.
If you’re considering bankruptcy, determine how much you expect to receive and which tax year the refund relates to. Keep your tax return, refund information, bank records, and records showing how you used the money. Then tell your bankruptcy lawyer about the expected refund before filing. Your lawyer can consider the timing, bankruptcy chapter, and South Carolina exemptions when determining how the refund may affect your case.
Find out more about your case by getting in touch with Reed Law Firm. Our bankruptcy lawyers in Columbia can evaluate your expected refund, tax records, filing date, and available exemptions to help you understand what may happen to the money. Complete our online form or call 803-726-4888 for your confidential consultation.
]]>Most individuals considering bankruptcy will look at Chapter 7 or Chapter 13. Chapter 7 can discharge many qualifying debts, while Chapter 13 allows an individual with regular income to repay debts through a court-approved plan. Your financial situation helps determine which chapter you may use.
For Chapter 7, your income and household expenses may determine whether you pass the means test. Under 11 U.S.C. § 707(b), a Chapter 7 case involving consumer debts primarily may be presumed abusive if the debtor’s income and allowable expenses meet certain thresholds. Chapter 13 has its own eligibility rules, including limits on the amount of secured and unsecured debt and a requirement that the debtor have regular income sufficient to make plan payments.
Before filing, gather records showing where your money comes from and where it goes. These may include 1099 forms, bank statements, invoices, payment-platform records, and business expense receipts. You also need information about your debts and property. Make a list of credit cards, loans, medical bills, tax obligations, and other debts. Identify vehicles, computers, tools, inventory, business accounts, and money clients still owe you.
Most individual debtors must complete an approved credit counseling course within 180 days before filing for bankruptcy. The counseling session reviews your financial situation, debts, income, and expenses, and may help you consider alternatives to bankruptcy. You generally complete it with an approved provider before filing and receive a certificate showing that you completed the requirement.
Your bankruptcy petition officially starts the case, but it is filed with additional documents covering your income, expenses, debts, assets, and financial history. Work-related property needs to be listed accurately, including vehicles, computers, tools, equipment, inventory, and business accounts. South Carolina’s exemption law also matters. S.C. Code § 15-41-30 identifies property that may be exempt from attachment, levy, sale, or bankruptcy proceedings, including certain interests in a home, vehicle, household property, and tools of a trade.
If your case belongs in the Columbia Division, you can file with the U.S. Bankruptcy Court for the District of South Carolina. The court states that debtors who have completed the required documents and pre-filing credit counseling may file in person or by mail, with electronic filing options also available for qualifying self-represented debtors. You may have to pay a filing fee, although qualifying debtors may have options for a waiver or payment arrangements depending on the circumstances.
After filing, a trustee is assigned to your case. You must attend a 341 meeting of creditors, where the trustee can ask questions about your petition, income, debts, property, and financial affairs. Your case may require additional documents or information. Chapter 13 cases also involve review and confirmation of the proposed repayment plan. Before receiving a discharge, you generally must complete a required financial-management course and satisfy the other requirements that apply to your bankruptcy chapter.
Before filing as a self-employed individual, contact Reed Law Firm at 803-726-4888 or online to request your confidential case review. Our Columbia bankruptcy attorneys can help you organize income from multiple sources, account for legitimate business expenses, identify property that must be disclosed, apply South Carolina exemptions, and determine whether Chapter 7 or Chapter 13 better fits your circumstances.
]]>Your Chapter 13 Florence bankruptcy case will be heard by the United States Bankruptcy Court, District of South Carolina, Columbia Division. This is located in the J. Bratton Davis U.S. Bankruptcy Courthouse in Columbia, which serves 12 counties across the state, including Florence.
Once you file for Chapter 13 bankruptcy, the trustee assigned to your case takes on several responsibilities:
Because the trustee reviews your case closely, accurate and complete financial disclosures from the outset help avoid delays or objections later in the process.
You will likely interact with the trustee’s office more than once during your case, from the initial meeting of creditors through the life of your repayment plan. Having an attorney who understands how the local trustee’s office typically handles cases can help you prepare for that meeting and respond effectively if questions or objections arise.
If you are facing a Chapter 13 bankruptcy, you need professional legal representation, and you should not wait to consult with a bankruptcy lawyer. Our attorneys at Reed Law Firm, P.A., serving Florence and South Carolina at large, work to protect your rights throughout the process. Please don’t hesitate to reach out by contacting us online or giving our firm a call at 843-679-0077 today.
]]>When a creditor obtains a bank levy, it can impose a serious financial burden on you. When a bank account is frozen, it can freeze the funds in the account or can make them available to the creditor in question. South Carolina also, however, implements certain exemptions in relation to specific accounts and assets. If you have questions or concerns regarding a bank freeze, you need skilled legal guidance. Our experienced Florence debt relief attorneys at Reed Law Firm, P.A., are on your side.
To freeze your bank account in Florence, the creditor must file a civil lawsuit and win a court judgment against you regarding an unpaid debt. The specific courts that hand down these judgments in Florence are the Florence County Magistrate Court and the Florence County Court of Common Pleas. The matter of which court will handle the case is determined by the amount of debt involved.
There are important legal exemptions regarding the freezing of bank accounts that can help protect your assets. For example, an individual who doesn’t claim a homestead exemption can protect up to a specific amount of cash in their bank account, as long as it is from a legal source to begin with. A homestead exemption allows a homeowner to protect their home from seizure by creditors.
Certain sources of income are exempt from levy actions, and they include all the following:
These protections, however, are not absolute. When the creditor is a government entity, such as in cases involving overpaid public benefits or unpaid taxes, that agency may still be able to levy funds that would otherwise be protected from a private creditor.
In South Carolina, certain types of accounts are also exempt from bank levies. Prime examples include individual retirement accounts and annuities, as well as accounts established in the name of a trust. The money held in accounts associated with pension plans that qualify under the Employee Retirement Income Security Act is also exempt. It is important to note, however, that depositing money in exempt accounts for the sole purpose of evading a creditor’s reach will not exempt the funds.
Our formidable Florence debt relief attorneys at Reed Law Firm, P.A., dedicate our impressive practice to helping clients throughout the State of South Carolina secure financial relief through a range of solid legal protections, and we are here for you, too. For more information about everything we can do to help, please don’t put off reaching out by contacting us online or giving our firm a call at 843-679-0077 today.
]]>The State of South Carolina has wage-garnishment guidelines that are far more restrictive than those in many other states. These extend to not allowing most private creditors to garnish earnings.
As a result, creditors can’t pursue earnings wage garnishment for some of the most common forms of consumer debt, including credit card debt, cash advances, medical bills, and personal loans. Some medical bills can garnish wages through the SC Gear program.
The exceptions to this rule include all the following:
It’s not unusual for debt collectors to threaten debtors with wage garnishment, which makes it important to keep your legal rights in mind. There are consumer protection laws in place, and unlawful threats, such as those made by most private creditors, can be reported to the SC Department of Consumer Affairs. A trusted debt relief lawyer can help you better assess your rights and your best options in the face of wage garnishment.
In those instances when wage garnishment is allowed in South Carolina, legal limits apply. The cap for garnishment is generally set at the federal limit of 25 percent of the employee’s disposable weekly earnings. For student loans, however, this percentage is reduced to 15 percent.
The maximum wage garnishment amount for child support arrears in South Carolina follows federal limits. These caps are considerably higher than they are for other forms of debt, and they break down as follows:
Our knowledgeable Columbia debt relief attorneys at Reed Law Firm, P.A., skillfully serve clients throughout South Carolina. We appreciate the stress and financial challenges associated with overwhelming debt, and we have the experience and legal insight to help you tackle it head-on. To learn more, please don’t delay reaching out by contacting us online or giving our firm a call at 803-726-4888 today.
]]>To begin, it’s important to define bankruptcy as it relates to debt settlement.
Bankruptcy is a legal process designed to protect, rather than to focus blame on or punish, consumers. The bankruptcy process affords distinct benefits backed by both federal and state law. Bankruptcy cases in Columbia are filed with the District of South Carolina U.S. Bankruptcy Court and are heard in the J. Bratton Davis U.S. Bankruptcy Courthouse.
Debt settlement, on the other hand, is a private action that the government does not directly sponsor. The process generally involves negotiating a payment plan with creditors for a lump sum paid upfront, representing a fraction of the total owed. Consumers typically make regular payments into the settlement plan until the payment amount has accrued.
Ultimately, debt settlement lacks the legal protections that bankruptcy offers. It’s also less predictable and doesn’t offer as broad a range of debt relief options as bankruptcy does.
Often, bankruptcy is a better option than debt settlement, based on a range of primary factors.
In a Chapter 7 bankruptcy, you can completely discharge most, if not all, of your common unsecured debts like credit cards, personal loans, and medical bills. Chapter 13 bankruptcy results in a structured repayment plan that can eliminate your remaining balances at the end of your payment plan, which will be either 3 or 5 years.
Once you file for bankruptcy, the law implements an automatic stay that puts an end to all the following:
This is a level of protection that debt settlement simply can’t offer.
Yes, bankruptcy is a process, but it tends to offer consumers speedier financial recovery than debt settlement can. Ultimately, debt settlement can drag on. And because it doesn’t offer the same level of debt relief, it can be more difficult to turn your financial standing around.
Your financial situation is unique to you, and our dedicated bankruptcy attorneys at Reed Law Firm, P.A., are committed to helping you find the right answers for you. We’re proud to faithfully serve clients throughout Columbia and the State of South Carolina, and we welcome the opportunity to help you as well. Learn more by contacting us online or giving our firm a call at 803-726-4888 today.
]]>The State of South Carolina has a three-year statute of limitations for filing lawsuits in relation to debt collection. The clock generally begins ticking when you default on the debt. Be aware, however, that making a payment on the debt, even a small one, can restart the three-year window.
Debt that passes the three-year mark in South Carolina is generally considered time-barred, and this applies to both the original creditors and to debt buyers.
If a debt buyer sues you, you’ll either be served with a summons and complaint or will receive it in the mail. From here, you will likely have 30 days from the date of receipt to submit your written answer. If you fail to do so, your case will almost certainly be resolved in the form of a default judgment, which means the outcome will be guided solely by the debt buyer’s input.
Once you’ve been served with a debt collection lawsuit, it’s time to take action. And the most important first step is consulting with a skilled debt collection defense lawyer.
Your accomplished debt collection defense attorney will faithfully address each of the following next steps on your behalf:
Our diligent Florence debt collection defense attorneys at Reed Law Firm, P.A., are proud to serve clients throughout South Carolina, and we have the experience and drive to help make a big difference in terms of how your case is resolved. If you’ve been served with a debt collection lawsuit, time is of the essence, so please don’t put off contacting us online or giving our firm a call at 843-679-0077 for more information today.
]]>The truth is that Florence and South Carolina are both experiencing a significant increase in overall debt that rivals other parts of the country. In other words, if you are facing a hardship in relation to debt, you’re in good company and should not consider it a stain on your character.
The papers served to you contain important information that will pave the way toward what’s to come. This makes finding all the following information a critical first step:
It’s important to note here that it is not particularly unusual for a debt collection lawsuit to be served to the wrong person in South Carolina. This highlights the importance of pinning down the basics.
Next up is consulting with a savvy debt collection defense attorney. The importance of the help they provide can be difficult to overstate.
You are protected from harassment by debt collectors at both the state and federal levels. Once you have legal representation on your side, the debt collector must limit their communications to your formidable debt collection defense lawyer.
If you fail to respond in accordance with the legal deadlines that apply, it will very likely translate to an automatic loss for you, in the form of a default judgment. Having professional legal representation in your corner means that you’ll not only have a solid defense but that you will also remain timely.
Your capable legal counsel will also challenge any evidence that doesn’t have sufficient documentation attached. This means requiring the debt collector to prove the debt belongs to you.
Finally, you’ll look to your focused legal advocate to leverage their legal insight and skill in pursuit of a favorable case outcome. This can range from having the case dropped altogether to seriously reducing the payout or implementing a manageable payment plan.
Our well-respected Florence debt collection attorneys at Reed Law Firm, P.A., serving clients throughout the State of South Carolina, will spare no effort in defense of your rights and in pursuit of an optimal case outcome. Learn more by contacting us online or giving our firm a call at 843-679-0077 today.
]]>There is a significant amount of data supporting the finding that residents of Columbia and of South Carolina generally are experiencing a significant rise in debt concerns. This leaves the state even more vulnerable to unfair debt collection practices, which only amplifies the underlying problem.
FDCPA is designed to protect consumers like you from harassment by debt collectors. When third-party debt collectors cross the legal line, they can be held accountable via consumer action, and the protections FDCPA offers are expansive.
FDCPA sets exact parameters for when debt collection calls can be made. This is between 8 AM and 9 PM, local time. And if you let the debt collection agency know that you can’t take calls at work, debt collection calls during your work hours will also be off limits.
Debt collectors cannot stoop to practices that are identified as abusive or threatening. If a debt collection agent informs you that they will be taking any action that they’re not legally allowed to take, it’s a threat, and it’s against the law. Prime examples include threatening any of the following:
That last one deserves special attention. South Carolina law generally does not allow creditors to garnish wages to collect consumer debts, which means a collector who threatens garnishment over a credit card or medical bill is threatening something the law doesn’t permit, and that’s an FDCPA violation.
While embarrassing consumers into making payments may be effective, debt collection agencies are not allowed to use this underhanded technique. This means they can’t contact your friends and family other than to obtain contact information for you. And this extends to leaving voicemails regarding your debt.
If a debt collector steps over the legal line, you have the right to sue for statutory damages, which are capped at $1,000. In addition, however, your case can address actual damages like out-of-pocket expenses and lost income. You can also seek compensation for the emotional duress you suffered as a result of the illegal debt-collection practices, along with your reasonable attorney’s fees, which the law requires the collector to pay if you prevail.
Our trusted FDCPA attorneys at Reed Law Firm, P.A. serve Columbia and the State of South Carolina, and we dedicate our practice to advocating for the rights of all our valued clients. For more information about how we can help, please don’t delay contacting us online or giving our firm a call at 803-726-4888 today.
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