I will call you from an outgoing phone line, number 864-593-1217, at your appointment time.
Basic Qualification for Bankruptcy
(the “Means Test”)
- How long in SC?
- What County?
- Prior Bankruptcy?
- Persons in Household
- Gross Monthly Income (Before all tax and deductions, the required multiple for a month is 4.33 weeks)
- Last Year’s Gross Income
If your income is too high for Chapter 7, then Chapter 13 is your remaining option. Chapter 13 is also the remedy for curing mortgages.
The Chapter 7 trustee‘s job is to liquidate and pay creditors and the Chapter 13 trustee’s job is to look for reasons to pay more to your creditors.
What do they look at to try to accomplish these goals? Two things, “non exempt equity” and “preferential transfers”.
Part 1: Non exempt equity in assets
- Vehicles Titled in Your Name, Private Party Values
- Rent or Own Your Home, FMV & Mortgage Balance
- Other Real Estate, Other Personal Property of Value
- Last Year’s Tax Refund / All tax returns that you are required to file must be filed prior to filing.
Part 2: Preferential Transfers
Hearing question (transfers):
- Have you transferred money or value (item, property or loan) more than $600 to a friend or family member in the last three years?
Hearing questions (unusual income, spending detail – they are still looking for transfers):
- Have you sold real estate or received inheritance in the last 10 years (If you receive inheritance during or 6 months after your bankruptcy, it may be used to pay your creditors).
- Have you settled lawsuits, Workers Compensation claims or withdrawn or closed retirement accounts in the last five years?
- Have you received insurance money from theft fire or other disaster in the last three years?
- Do you gamble?