As of March 2011, there was a sharp disparity in different state’s bankruptcy filing rates. Five states still have filings higher this year than last, but South Carolina showed it is still one of the country’s leaders in fewest bankruptcies filed.
Many Americans have been seeking relief after losing jobs, seeing their businesses fail or facing foreclosure. Although bankruptcies in South Carolina are trending down, bankruptcies still occur. Here is a repayment plan for the bankrupt in South Carolina.
Chapter 13 Bankruptcy, also called a wage earner’s plan, enables individuals with regular income to develop a plan to repay all or part of their debts. Under Chapter 13 Bankruptcy, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. During this time, the law forbids creditors from starting or continuing collection efforts.
Not everyone can qualify to file Chapter 13 Bankruptcy. To file Chapter 13 Bankrupty you must meet the following criteria:
- Chapter 13 Bankruptcies must be filed as an individual and not as a business. If you own a business, however, you can file for Chapter 13 Bankruptcy but as an individual. Chapter 13 Bankruptcy, in many cases, can include business-related debts for which you are personally liable. Stock and commodity brokers cannot file under Chapter 13 Bankruptcy.
- You must have sufficient discretionary income. After you have subtracted your taxes, normal living expenses, and secured debt expenses from your gross income, you must have enough remaining to service your unsecured debts within a given time frame.
- You must have debts that are not too high. Secured debts cannot exceed $1,010,650 and unsecured debts cannot exceed $336,900.
- You must be current on your income tax filings. To file for Chapter 13 Bankruptcy, you will have to submit proof that you filed your federal and state income tax returns for the four years prior to your bankruptcy filing date.
After filing Chapter 13 Bankruptcy you must create a repayment plan which meets the laws governing the plan. After the plan has been made and the court has approved the plan, you will make scheduled payments to a court-appointed trustee who will then make the payments to the creditors.
If your plan is not confirmed and the case is dismissed, the court may authorize the trustee to retain a specified amount for costs, but all other funds paid to the trustee are returned to you.
If the plan is approved, you will continue to make the payments on time for the duration of the plan. Once the plan has been fully implemented and the bankruptcy is over, creditors can no longer seek relief for any or part of a debt you owed them. In the event you completely fail to honor your plan, the trustee can force you into Chapter 7 Bankruptcy or turn you back over to your creditors for full collections.
Understanding all the intricacies of Chapter 13 Bankruptcies can be difficult. If you are in financial trouble and considering filing bankruptcy, contact a bankruptcy lawyer.
If you need relief from the stress of debt and you live in or around the metropolitan areas of Charleston or North Charleston, South Carolina, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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