There are many common misconceptions about filing for bankruptcy. These misconceptions and attempts to attach negative stigma to the process are by design. The truth of the matter is that creditors don't want you to know about many of the benefits afforded to consumers by bankruptcy protection laws.
Filing for bankruptcy in Rock Hill, South Carolina may be your best option depending on the type and amount of debt you are struggling with. Consulting with our experienced bankruptcy lawyers in Columbia or Florence is an excellent place to start.
Chapter 13 or Chapter 7 bankruptcy in South Carolina
In some cases, it may be determined that repaying a portion of your debts is the best course of action and your attorney will assist you in filing Chapter 13 bankruptcy. In this type of bankruptcy, your unsecured debts are forgiven, which could free up enough income to pay your secured debts. This works well when debts are not insurmountable or in cases where a debtor has significant assets he or she wishes to protect.
In other cases, a Chapter 7 bankruptcy filing can be another option. In these cases, some assets may be liquidated but all debts are forgiven.
In either case, filing bankruptcy affords a debtor some of the strongest consumer protections available under the law. All lawsuits will be stopped from the moment of filing. Foreclosures will be halted, repossessed vehicles may be returned to you, tax problems will be tolled, and all collection calls and other adverse activity must stop.
Filing for Bankruptcy Protection in South Carolina
Much of the confusion about filing bankruptcy revolves around either the establishment of a repayment plan or seizure of assets. Payment plans may be mandated in certain cases, after bankruptcy reform, to ensure consumers are not unnecessarily filing Chapter 7 bankruptcy, which is easier, simpler and cheaper, or otherwise abusing the system. As for seizure of assets, in the vast majority of cases, debtors will keep their home, at least one vehicle, their clothing and furniture, and heirlooms or items of sentimental value.
Recently, USA Today attempted to address some other common concerns of filing bankruptcy.
- While certain debts can't be discharged, including most student-loan debt, alimony and child support, and most tax debt, eliminating other types of debt can permit you to focus on repaying those financial obligations.
- Most debtors are overly concerned about the impact on their credit score. The truth is by the time most consumers file for bankruptcy protection, their credit score has already been ruined by late payments, maxed out credit cards, and adverse actions taken by creditors. Eliminating debt can actually make a consumer more appealing to lenders in the aftermath of a bankruptcy discharge.
- Some worry about court costs and legal fees. Filing for bankruptcy results in court charges of less than $500 and your legal fees are likely to be more than covered by stopping payments on unmanageable debts. Bankruptcy is designed to be among the most affordable legal protections available to consumers.
In some cases, people wish to explore things like debt-consolidation, credit counseling and other alternatives to bankruptcy. We advise them to discuss these options with an experienced South Carolina bankruptcy attorney.