Individual Chapter 7:
Chapter 7 cases are considered liquidations, although the majority of cases do not result in the loss of any assets. To qualify as an individual, you must pass a “means test”, which determines you and your family earn less than the median income for your household size in the county you reside. Depending on the size of your household, this median income can range from approximately $36,000 to $83,000.
If you own a car or a home, Chapter 13 is usually a better option; however, with Chapter 7 you may keep them but may have to reaffirm the debt. Regardless of your bankruptcy choice, South Carolina provides generous exemptions that allow you, in most cases, to retain your assets.
Business Chapter 7:
South Carolina and the IRS state that you must dissolve your corporation if your business is going under. This can be accomplished through a formal dissolution or through filing for Chapter 7 bankruptcy. Filing Chapter 7 is much easier, as it terminates the corporation and often, if there are remaining assets, a court appointed trustee will liquidate them. This process is simple and usually inexpensive. Many LLC’s, S-corporations, and other business entities file Business Chapter 7 with Moss and Associates successfully.