What are the different types of insolvency?

In South Carolina, there are three main types of insolvency. Insolvency is a legal term that refers to an individual or business being unable to pay back their debts. The first type of insolvency is Chapter 7 bankruptcy. This type of bankruptcy filing is for businesses or individuals who are unable to pay back their debts. This type of insolvency allows you to have your debts discharged, meaning that you no longer need to pay the money back. The second type of insolvency is Chapter 13 bankruptcy. This type of filing is for businesses or individuals who can still make payments but at a reduced rate. In Chapter 13, your creditors may agree to accept a repayment plan that allows you to pay back your debts over a longer period of time. The last type of insolvency is liquidation. Liquidation is when the assets of a business or individual are sold off and the proceeds are used to pay back creditors. This type of insolvency should only be used as a last resort, as it can have a negative impact on your credit score. Overall, insolvency can be very difficult to handle on your own. It is important to speak to a bankruptcy attorney to understand all of your options. A bankruptcy attorney can provide you with advice and help you decide which type of insolvency is best for your situation.

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What are the different types of insolvency?

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