Overview --

The two main types of relief available for consumers are known as Chapter 7 (liquidation) and Chapter 13 (wage earner reorganization). Other types of relief are available under Chapter 9 (reorganization of a municipality); Chapter 11 (business reorganization); and Chapter 12 (family farmer reorganization). Certain concepts and terminology are common to all types of bankruptcy cases:

Commencement

A bankruptcy case is commenced by the filing of a petition, along with a list of all creditors. An individual must undergo credit counseling as a prerequisite to filing a case. A filing fee in the amount of $274 must be attached to a Chapter 13 petition. A petition can be filed by an individual or by a husband and wife jointly under Chapter 13. A filing fee in the amount of $299 must be attached to a Chapter 7 petition. A petition can be filed by an individual or by a husband and wife jointly under Chapter 13. A filing fee in the amount of $274 must be attached to a Chapter 7 petition. A partnership, a corporation, or an individual can file under Chapter 7. A filing fee in the amount of $1,039 must be attached to a Chapter 11 petition.

Trustee

A trustee will be appointed upon filing in a Chapter 7, 12, or 13 case. In a Chapter 11 case, a trustee can only be appointed upon request by a party in interest if it can be shown that the debtor should not be allowed to continue to manage its affairs. In South Carolina, the trustee is selected from a panel of trustees who have previously qualified. Depending on the type of case, the trustee will have different responsibilities.

Automatic Stay

Individuals seeking relief under the bankruptcy laws are provided immediate protection from their creditors. Once the Bankruptcy Court receives a bankruptcy petition, a case number is assigned which triggers an automatic stay of all collection efforts by creditors. The protection applies whether creditors actually know of the filing of the case. Any acts taken after the date of filing can be undone.

Elizabeth M. Atkins
778 St. Andrews Boulevard • Charleston , SC 29407
(843) 763-0333 • Fax:  (843) 763-9020
Office Hours: 8:30 AM - 4:30 PM Monday - Friday
E-Mail:  ematkins2000@yahoo.com