Calculating Your Expenses for the Means Test

Calculating Your Expenses for the Means Test

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When you engage a bankruptcy attorney to handle your bankruptcy case, you will be subject to a Means Test to determine if you qualify to file for Chapter 7 bankruptcy. Your bankruptcy lawyer will ask you to gather some information about your monthly expenses. This includes both your necessary and discretionary expenses. You will need to provide documentation of your expenses, such as receipts, bills, or bank statements.

What expenses are considered “necessary” and which ones are considered “discretionary?” Your bankruptcy attorney will discuss these in regard to your specific circumstances, but we can take a peek at each of these in general. Today, we will look at what are considered “necessary” expenses:

Housing and Utilities

This includes your mortgage or rent, as well as any property taxes and insurance. You will also need to include any utility bills, such as electricity, gas, water, and sewage.

Transportation

Car payment, car insurance, and gas expenses. If you use public transportation, you will need to include those expenses as well.

Food

Groceries and any other food-related expenses such as dining out.

Childcare

If you have children who require childcare in order to work, you will need to include those costs here.

Medical:

This includes any medical or dental bills that you have incurred. It also includes health insurance premiums.

Other Necessary Expenses:

This may include items such as clothing, education costs, and pet care.

Our next article will cover “discretionary” expenses.

If you filing bankruptcy, Charleston residents and individuals throughout South Carolina have turned to the Drose Law Firm for assistance. Our bankruptcy lawyer handles solely debt resolution cases and has been doing so for more than three decades. Considering filing bankruptcy? If so, give us a call to schedule a consultation with our bankruptcy attorney today!

What is a Bankruptcy “Means Test”

What is a Bankruptcy “Means Test”

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One reason people choose to hire a bankruptcy lawyer is because the process to file is complicated and can be quite confusing. For instance, not everyone qualifies to file Chapter 7 bankruptcy as certain criteria must be met. The “Means Test” determines if you are eligible to file for Chapter 7 bankruptcy. Your bankruptcy attorney can explain this further, but here is a summary:

The first part of the Means Test examines your household income and compares it to the median income for a household of your size in South Carolina. If your household income is below the median income, you will automatically qualify for Chapter 7 bankruptcy. If your household income is above the median income, you will need to complete the second part of the Means Test, which looks at your disposable income.

Disposable income for purpose of the Means Test is defined as your monthly income after subtracting certain allowed expenses, such as taxes and child care costs. If your disposable income is less than $100 per month, you will qualify for Chapter 7 bankruptcy. To complete the second part of the Means Test, you will need to provide your bankruptcy lawyer with the following:

  • Your most recent federal tax return
  • Your pay stubs from the last six months
  • A list of all of your debts
  • A list of all of your assets
  • Any other documents requested by your bankruptcy attorney.

Our next article will answer some common questions about the Means Test.

If you are considering bankruptcy, Charleston residents and those in surrounding areas trust the bankruptcy lawyer at the Drose Law Firm to help guide them through the process. Some law firms have multiple practice areas (i.e., auto accidents, malpractice, criminal, civil, etc.) At Drose Law Firm, our bankruptcy attorney only handles debt resolution and has been doing so for more than three decades. Give us a call to  schedule a consultation with our bankruptcy lawyer today.

What to Expect When Filing Chapter 7 Bankruptcy

What to Expect When Filing Chapter 7 Bankruptcy

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We are continuing our series of articles discussing what to expect when filing Chapter 7 bankruptcy. Our previous articles gave an overview of what Chapter 7 bankruptcy is and explored the actual filing process. We also covered how you and your bankruptcy lawyer will be required to meet with your creditors before receiving the final discharge order. Today, we will look at what else to expect when filing Chapter 7 bankruptcy.

Credit Rating

Unfortunately, filing Chapter 7 bankruptcy will significantly damage your credit for up to 10 years. You may still be able to obtain credit, but it will be more costly (i.e., higher interest rate) and limited (i.e., lower credit limit). Your bankruptcy lawyer can suggest some strategies to help you re-build your credit after filing Chapter 7 bankruptcy.

Hiring a Bankruptcy Attorney

Filing bankruptcy can be quite complicated, so if you are considering filing Chapter 7, you may wish to hire an experienced bankruptcy attorney to help navigate the process. A bankruptcy attorney can file the paperwork, attend creditor meetings, provide suggestions on how to re-build your credit, and deal with any associated red tape.

It is often stressful for individuals to consider filing bankruptcy. Charleston residents and those in surrounding areas engage Drose Law Firm because our bankruptcy lawyer only handles debt resolution. If you are considering bankruptcy, we welcome the opportunity to talk with you. Give us a call to schedule a consultation with our bankruptcy attorney today.

What Can I Expect When I File Chapter 7 Bankruptcy?

What Can I Expect When I File Chapter 7 Bankruptcy?

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One of the first questions clients ask our bankruptcy attorney is what can they expect when they file Chapter 7 bankruptcy. This series of articles covers some of the basics about Chapter 7 bankruptcy. Our previous article covered how bankruptcy lawyers should go over the different types of bankruptcy with their clients, including providing and overview of Chapter 7. They should also discuss what the process of filing Chapter 7 bankruptcy entails. Here are a few more things you can expect:

Meeting with Creditors

A trustee will be appointed by the court to supervise your bankruptcy. You will then need to meet with your trustee and creditors an answer questions about your debts and property. Your bankruptcy lawyer will be present at this meeting.

Discharge Order

After the bankruptcy has been filed and you’ve answered all questions from the trustee and your creditors, your case will continue to be reviewed. If there are additional questions or concerns, those will need to be addressed by your bankruptcy lawyer on your behalf. Once all the requirements have been met to the satisfaction of the court, you will receive a discharge order which relieves you from your unsecured debt.

When represented by a bankruptcy attorney, a discharge order in many cases can be granted in approximately three months. If you have a lot of property or extenuating circumstances, the process could take longer. Drose Law Firm has spent more than three decades handling cases involving bankruptcy. Charleston residents and those in surrounding areas turn to our bankruptcy lawyer for their debt resolution and debt settlement needs. Give us a call to schedule a consultation today.

What Happens in a Chapter 7 Bankruptcy?

What Happens in a Chapter 7 Bankruptcy?

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When someone comes to our office to meet with our bankruptcy attorney, many times they ask about what exactly happens during the Chapter 7 bankruptcy process. There are many myths about bankruptcy, and our bankruptcy lawyer takes time to help our clients understand all of the options available to them. Our next series of articles will discuss what happens in a Chapter 7 bankruptcy. Let’s get started:

Overview of Chapter 7

Chapter 7 bankruptcy is designed to provide a debtor relief from debts owed to creditors. It is different from Chapter 13 bankruptcy, which essentially re-organizes debt into a structured plan to pay. In the case of Chapter 7, all qualifying debts may be completely discharged.

Qualifying for and Filing Chapter 7

A debtor must meet a certain set of requirements to qualify for filing Chapter 7 bankruptcy. A bankruptcy attorney can help a debtor determine whether or not they are qualified. If they are qualified to file Chapter 7, then the bankruptcy lawyer will move towards preparing the actual filing. This is a petition to the court which includes a comprehensive and detailed list of all the debtors property, debt, and creditors.

Our next article will outline more details about filing Chapter 7 bankruptcy.

When considering bankruptcy, Charleston residents and those in surrounding areas who need a trusted bankruptcy attorney may choose to engage Drose Law Firm. Our bankruptcy lawyer handles all types of bankruptcies and debt resolution cases. We have been in business for more than three decades and will be here to serve you if you need us. Give us a call to learn more today.

What Items and Income Are Exempt from Bankruptcy?

What Items and Income Are Exempt from Bankruptcy?

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What Items and Income Are Exempt from Bankruptcy?

We are continuing our series of articles discussing the various types of items and income that may be exempt from bankruptcy in South Carolina. Our previous articles discussed equity in your home, personal property, retirement accounts, and equity in your automobile. While only an experienced bankruptcy attorney can advise you of what is exempt in your case, here are more types of items and income that may qualify for exemption.

Professional Tools and Equipment

If you have specific tools and/or equipment that you need and use to perform your work, then these may qualify for exemption. Examples include commercial tractors, lawn mowers, welding equipment, books, computers, telephones, and any other professional equipment you use to earn income. If you have any tools of the trade that you think may qualify, be sure to disclose these to your bankruptcy attorney.

Alimony and Child Support

If you are receiving any alimony or child support, this is exempt from your bankruptcy filings. Once again, be sure to disclose all alimony and/or child support payments you receive to your bankruptcy lawyer.

Many people think that filing bankruptcy means losing everything. That is simply not the case. A bankruptcy lawyer can help you navigate through the difficult process and advise you of what assets you may be able to retain. When it comes to filing bankruptcy, Charleston residents and those in surrounding areas have trusted Drose Law Firm for more than three decades. Our bankruptcy lawyer handles debt resolution, debt settlement, and foreclosure resolution cases, including IRS debt resolution. Give us a call to schedule a consultation with our bankruptcy attorney today.

Bankruptcy Exemptions in South Carolina

Bankruptcy Exemptions in South Carolina

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Bankruptcy Exemptions in South Carolina

We are continuing our series of articles highlighting the different types of assets that may be exempt from bankruptcy under South Carolina law. Our previous article discussed the importance of disclosing all of your assets, equity, real estate, property, retirement accounts, etc. to your bankruptcy lawyer. We also covered how a portion of the equity in your primary residence and some personal property such as household goods, clothing, appliances, jewelry, etc. may also be exempt. Today, we will look at two more areas that may be protected when filing bankruptcy.

Some Retirement Accounts

It is important to disclose all of your retirement accounts and assets to your bankruptcy attorney as some types of tax-exempt retirement accounts and pension funds can be protected from bankruptcy. Your bankruptcy lawyer will review your retirement portfolio, retirement accounts, and pension and advise what can be exempt.

Equity in Your Automobile

If you have equity in your primary motor vehicle that you use for transportation, then either a portion or all of the equity may be protected from bankruptcy. Be sure to disclose to your bankruptcy attorney all of the motor vehicles that you own and/or are in your name.

Our next article will cover more types of assets that may qualify for bankruptcy exemption.

If you are considering filing bankruptcy, we can help. Our bankruptcy attorney has been handling debt resolution cases in South Carolina for more than 30 years.  We understand how difficult it can be to file bankruptcy. Charleston residents and those in surrounding areas have trusted Drose Law Firm to help them reclaim their financial freedom. Give us a call to speak with our bankruptcy lawyer today.

What Can I Exempt from Bankruptcy in South Carolina?

What Can I Exempt from Bankruptcy in South Carolina?

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Many of the clients who come to us are fearful that they will “lose everything” when they file bankruptcy. This is simply untrue. While you may lose some assets, there are provisions for certain assets to either be partially or fully exempt. It is extremely important for you to disclose all of your assets, property, equity, retirement accounts, etc. to your bankruptcy attorney. Our next series of articles will discuss some of the different types of assets that may be protected during the bankruptcy process. Let’s get started:

Equity in Your Home

In most cases, you can protect a portion of the equity you have in the primary home that you declare as your residence. Your bankruptcy lawyer can tell you how much equity may qualify for exemption based on your marital status and the current amount allowable under South Carolina law.

Some Personal Property

Some personal property may qualify for exemption from bankruptcy. While you will need to discuss this in depth with your bankruptcy attorney, examples of personal property that may be exempt include books, clothing, household goods, appliances, jewelry, firearms, crops, burial plots, and animals.

Our next article will cover more types of assets that may be protected under South Carolina bankruptcy law.

When it comes to filing bankruptcy, Charleston residents and those in surrounding areas have trusted the Drose Law Firm for more than three decades. Our bankruptcy lawyer handles only debt resolution cases. Whether you have a simple bankruptcy or a complex filing, our bankruptcy attorney is happy to review your case. Give Drose Law Firm a call to schedule a consultation today.

How Do I Prepare for Filing Bankruptcy?

How Do I Prepare for Filing Bankruptcy?

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Filing bankruptcy is a major decision that takes much thought and careful consideration. Once you make the decision to file either Chapter 7 or Chapter 13, consulting a bankruptcy attorney to assist you can make the process much easier.  What kinds of things do bankruptcy lawyers need from clients?  Let’s take a look so you can be better prepared by knowing some of the information you will need to provide:

Documents

Your bankruptcy attorney will ask for documents and information about your current financial situation. Examples of documents you will need to locate and provide to your bankruptcy lawyer include tax returns, bank statements, income statements, and credit card statements.

Accurate List of Debt/Assets

You will need to make an accurate list of debt and assets and provide this list to your bankruptcy lawyer.  Be sure to include everything you own and owe, including all unsecured debt, mortgages, loans, real estate, etc. Your bankruptcy attorney can provide you with further guidance in this area. You want to make sure the information you provide is accurate. Do not use educated guesses or ballpark figures when compiling your list of debts and assets.

Are you considering filing bankruptcy? Charleston residents and those in surrounding areas have trusted Drose Law Firm with their Chapter 7 and Chapter 13 bankruptcy filings for more than three decades. When it comes to bankruptcy lawyers, consider hiring someone whose sole practice area is debt resolution.  The bankruptcy attorneys at Drose Law Firm handle debt settlement, foreclosure intervention, IRS debt resolution, and even student loan debt. Give us a call to schedule a consultation with a bankruptcy lawyer today.

Filing Bankruptcy with Joint Debt

Filing Bankruptcy with Joint Debt

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Filing bankruptcy can be complicated. An experienced bankruptcy attorney can help you through the process, especially if you have any special or extraordinary circumstances. One of the circumstances that can complicate your bankruptcy is joint debt.

Joint debt is debt that involves you and at least one other person.  Often times, this other person is a spouse or business partner. When you have joint debt, all parties share the same legal responsibility for it. Joint debt most often occurs on large ticket items such as a home, real estate, business, or vehicle.

If you have any joint debt, it is important to disclose this to your bankruptcy lawyer. At the end of the day, if you file bankruptcy, the individuals you hold the joint debt with will become responsible for paying it back. In otherwards, while your bankruptcy attorney may list the debt in your filing, only you will be absolved from paying it back. This is another reason why speaking with a bankruptcy attorney is so important, as they can advise you on the options you have given your specific joint debt situation.

When it comes to filing bankruptcy, Charleston residents have trusted the Drose Law Firm for more than three decades. Our bankruptcy attorney and staff ease the stress and red tape associated with filing either Chapter 7 or Chapter 13 bankruptcy, helping you establish a clean slate and make a new start.  Not all bankruptcy lawyers understand the complexity of the laws associated with filing bankruptcy in South Carolina. Our bankruptcy lawyer is thorough and is always looking out for the best interests of our clients. Give Drose Law Firm a call to schedule your appointment today.