At Reed Law Firm, P.A., we help our clients understand how bankruptcy works and how attorney Eric Reed can help them put their overwhelming debt behind them. Here are answers to some of the most common questions our clients ask during their free initial consultation.
For more specific answers to your bankruptcy questions, call our Columbia-based firm at 803-807-2565 or our Florence law office at 843-536-0073 today. We represent clients throughout central and eastern South Carolina.
Is Bankruptcy My Best Option?
This depends on many factors, but in general, if your debts are much larger than your income, bankruptcy is probably the best way for you to get out of debt. In other cases, debt consolidation and/or negotiation with creditors may be better choices. If you schedule an appointment with us, we will not try to steer you into a bankruptcy if that is not your best option. We will explain how bankruptcy and other debt relief options work, so that you can make your own informed decision.
What Kinds of Debts Can Bankruptcy Help With?
Through bankruptcy, you can generally discharge unsecured debt such as loans, credit card and hospital bills. However, unpaid spousal support, child support and some tax bills cannot be discharged. Student loans are also not dischargeable in most cases. However, even if a debt is not dischargeable, we may still be able to use bankruptcy to gain protection for you and work out a repayment arrangement. No matter what the debt is, if it is causing you trouble, give us a call so we can explain your options.
What is the Bankruptcy Process?
Both Chapter 7 and Chapter 13 bankruptcy begin with a filing with the bankruptcy court. This filing shows your assets, debts, income, tax returns, creditors and other relevant information, along with a plan for either repaying the debt or liquidating it.
The court then assigns a trustee to your case and schedules a meeting of creditors within about 40 to 50 days of the filing. At this hearing, the trustee puts you under oath. The trustee, and possibly some of your creditors, ask you questions about your financial standing and the terms of the bankruptcy plan. Your lawyer will prepare you for this hearing and be present during the proceeding. Do not let this meeting scare you. It normally takes no more than about five minutes and most creditors do not even attend. Your lawyer will be there with you to get you through the process.
In Chapter 13, once the parties agree to a bankruptcy plan, the judge will schedule a hearing to review the plan. It is not always necessary for you to attend the hearing to confirm the plan.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.