Commercial & Consumer Bankruptcy

Bankruptcy for Individuals and Businesses

Chapter 13 — Two Businessmen Talking in Aiken, SC
When an individual or business falls desperately behind on debt payments, one option may be to declare bankruptcy. There are many different avenues to take if you’re considering filing for bankruptcy and should only be decided after you’ve spoken to a bankruptcy attorney like Andrew C. Marine. Attorney Marine will sit with you one-on-one and discuss the best course of action to take based on your individual situation. Call (803) 649-0875 to schedule a meeting with Andrew C. Marine today.
Chapter 13 — Two Businessmen Talking in Aiken, SC
When an individual or business falls desperately behind on debt payments, one option may be to declare bankruptcy. There are many different avenues to take if you’re considering filing for bankruptcy and should only be decided after you’ve spoken to a bankruptcy attorney like Andrew C. Marine. Attorney Marine will sit with you one-on-one and discuss the best course of action to take based on your individual situation. Call (803) 649-0875 to schedule a meeting with Andrew C. Marine today.

Consumer Bankruptcy

Consumers have the option to choose which type of bankruptcy to pursue. These options are found in separate chapters of the Bankruptcy Code. Consumers most commonly file under Chapter 7 or 13, and very few file under Chapter 11.

Consumer: Chapter 7

Chapter 7 bankruptcy, often referred to as "liquidation bankruptcy," is the most common type chosen by consumers. Once the debtor file’s a petition with the court, all debt collection activity stops and a court appoints a trustee to oversee the liquidation of the debtor’s assets. Once assets have been liquidated, the trustee will collect the proceeds and pay the creditors. Any unresolved debt is then discharged.

Consumer: Chapter 13

If a debtor has regularly incoming wages and believes the financial strain is only temporary, they may file for Chapter 13. Similar to Chapter 7, all debt collection is stopped once a petition is filed. However, instead of liquidating assets, the individual seeks approval of a payment plan from the court and uses the incoming wages to make payments. Any unresolved debt is then discharged. The debtor must have less than $360,475 in unsecured debt and $1,081,400 in secured debt to be eligible for Chapter 13. 

Commercial Bankruptcy

Businesses must choose alternative types of bankruptcies, each of which correspond to a different chapter of the federal Bankruptcy Code. Businesses usually choose either Chapter 7 or 11, and occasionally Chapter 13. Sometimes businesses can even be involuntarily drawn into bankruptcy by their creditors, who face stiff financial penalties if they initiate an involuntary bankruptcy for invalid reasons.

Commercial: Chapter 7

The process for commercial Chapter 7 bankruptcy is very similar to the consumer’s process. Assets are still liquidated and overseen by a court-appointed trustee. However, outstanding debt at the end of payment is not discharged and the business typically closes.

Commercial: Chapter 11

In Chapter 11 bankruptcies, which are usually filed by businesses and rarely by individuals, the commercial debtor is usually allowed to stay in business throughout the bankruptcy proceedings. A business debtor may only operate independently in its ordinary course; transactions outside the ordinary course of business require court approval.

Andrew C. Marine does not provide Chapter 11 bankruptcy assistance, but can happily refer you to a trusted and experience colleague who can.
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