Chapter 7 or Chapter 13 Bankruptcy?
The South Carolina Bankruptcy Means Test
To apply the means test first the Charleston bankruptcy court will look at your average income for the past 6 months. If you fall under the South Carolina Median Income you are eligible to proceed with Chapter 7. As your bankruptcy lawyer I will help determine if you qualify. If you are over the South Carolina Median Income you may still be eligible for a Chapter 7 Bankruptcy however things are a little more complicated and now your attorney has some work to do.
In a Chapter 7, the Bankruptcy Code requires me, as your lawyer, to apply the means test to determine whether or not your filing of a Chapter 7 bankruptcy is presumptively abusive. Abuse is determined by looking at the difference between your current monthly income and your allowable monthly expenses, and by determining the amount of your non-priority unsecured debt. It is a complicated process, and that is why you should seek the help of an experienced bankruptcy attorney to assist you. You can rebut the presumption of abuse by showing special circumstances that might justify extra expenses, such as showing you are responsible for the support of a child in a public college, or by showing a need for adjusting your monthly income downward.
Get You Ready to File for Bankruptcy
If you are not eligible to file for Chapter 7 Bankruptcy, then you must file for Chapter 13. What are the differences in South Carolina? We will find out shortly but before you can file for either Chapter 7 or Chapter 13 bankruptcy, you will need to take an online credit counseling course that has been approved by the U.S. Trustee.
Call me now at (843) 814-4215 or utilize this contact form to find out more about the South Carolina means test and how to prepare for filing bankruptcy from a dedicated Charleston bankruptcy attorney.