MasConcepts Incorporated

I wanted to post my experience with filing for Chapter 13 in South Carolina. This sub helped me with a lot of answers and anxiety so hopefully this pays it forward a bit.

To start with numbers: I owed about $50k in consumer debts (loans and CC’s) which I had been carrying for years and always made minimum payments on. I also had a leased vehicle that I still “owed” about $20k on through the remainder of the lease, which I surrendered. I make about $80k per year, single household. No “large” assets, no mortgage.

I debated bankruptcy for a long time, like we all have, but no matter how hard I tried to work extra and buckle down on expenses I could just barely stay afloat. I gave up on borrowing any more money a couple of years ago, but the interest rates I had were monstrous.

I work in the legal field and one thing I know for sure, a good lawyer makes all the difference. I deal with financial crime on a daily basis and feel confident I could have filed myself, but I can’t stress enough how a good lawyer is worth their fee for the simplicity and peace of mind.

After meeting with the 3rd attorney, I found a great fit. All of my documents were gathered and submitted. At the 3rd and final meeting with the attorney before filing, we went over the schedules to outline the plan payment. I originally had about $2k in disposable income, but with some great legal guidance I was able to get that down to about $1600, with a 36 month repayment window. I filed in the last week of February. The 341 was set for the 3rd week of May.

The 341 went exactly like the majority of people in here, my hearing started at 9:30AM and I was in my car heading home by 9:35AM. The trustees representative may have asked me 8 yes or no questions. The trustee was not present himself, and the representative was very polite. Side note: I also learned right after filing that in SC we having standing trustees, meaning no rotation. One person does it for several counties continuously.

I got incredibly lucky and 4 of my creditors didn’t file claims, leading to a savings of approximately $14k. That shaves about a year off of my plan, so I should be free and clear in about 2 years.

My plan was confirmed on 6/1, now I just make my $1600 monthly payment and count down. I feel relieved financially for the first time in maybe a decade, as many others have said I wish I would have filed sooner. I’m sure I’m forgetting some details, so if anybody has any SC specific questions I’d be happy to answer (not as legal advice).

Interesting SC local rules that I haven’t seen talked about here much:

• Vehicle repossession is a huge deal. It may be that way everywhere for all I know, but my attorney made it clear that most finance companies won’t attempt to repo a car, they will instead contact the attorney and ask for permission to contact me after about 4 months to set up a surrender.

• You can apply for credit, or increase your net worth up to $25k without having to notify the court. The trustee almost never asks for tax returns or anything to check in post confirmation.

• The default payment method for 100% repayment is as much as possible as soon as possible, not x amount over 5 years. That could be specific to my attorney, or my trustee, I’m not sure. But my attorney was adamant that we do $1600 for 36 months rather than a lower payment over 5 years. He said that was the trustees general rule.

Thank you all for your posts and comments over the years, they helped me decide to move forward and I’m very happy I did. Wish me luck!