None of us like to be in state of bankruptcy. Imagine being in deep debt, and you have no other option but to declare yourself bankrupt?
Knowing where you stand
It is critical in any situation to know where exactly you stand in your debt status. Is the debt amount surpassing all assets, investments and earning amount put together? If yes, then you might need to hire a good bankruptcy attorney and file for bankruptcy.
If you live in South Carolina, you need not have to worry about finding the right attorney. South Carolina has plenty of credible bankruptcy attorneys and finding the right bankruptcy attorney in South Carolina should not be an issue provided you do your homework.
Ways to Declare Bankruptcy
Bankruptcy can be declared in two ways:
- Filing for Bankruptcy under Chapter 7
- Filing for Bankruptcy under Chapter 13
Now you might wonder the difference between the two. Chapter 7, otherwise known as straight bankruptcy helps in wiping out your debt in return for some of your property. This does not come with a repayment plan option. In order to qualify for Chapter 7, you need to pass the Means Test.
Chapter 13 on the other hand, comes with a repayment plan wherein you can pay off all your debts within a period of 3 – 5 years. This repayment plan requires the approval from the court. The repayment plan under Chapter 13 needs to undergo two tests namely the best interest and efforts test.
Filing for bankruptcy might sometimes be the best option for you. It can give you a fresh start once your debts are cleared and ease the burden off your shoulders.