Our clients will generally need to file either under Chapter 7 or Chapter 13 of the Bankruptcy Code. Generally, Chapter 7's are referred to the S. C. Bar Pro Bono Program or the S. C. Lawyer Referral Service. We do not handle Chapter 11 or 12 bankruptcies. Once a bankruptcy is over, the client will be sent a discharge order from the bankruptcy court. They should put this document in a safe place because they will need it when they apply for credit again.
Unsecured debts are things such as credit cards, hospital bills and doctor bills.
Secured debts are things such as a car loan, mortgage, mobile home debt, or a loan where a car was used as collateral for the debt. When a chapter 7 bankruptcy is finished, you will have either turned over the secured property to the creditor or worked out something to keep the secured property, and all of your unsecured debts will be wiped out forever. The fact that you have filed a Chapter 7 bankruptcy will stay on your credit report for 10 years. In a Chapter 13 bankruptcy, you have to have some money left over after all your monthly living expenses have been paid. That extra money will be used to make payments into a Plan which provides for payment in full or the value of the collateral to your secured creditors and either full or partial payment to your unsecured creditors.