Filing for bankruptcy is a big step. Hesitating to hit the reset button on your finances when you really need it can cause you and your family a great deal of harm.
For many, now is the time for a financial reset
We've been helping South Carolina families work through their financial challenges and understand when it's time to declare bankruptcy for many years. Here are the questions you need to ask yourself:
- Are the numbers too high to get back in control of my debt? If your debts exceed your assets, and you don't have an obvious source of additional cash (such as a relative or inheritance), bankruptcy may be your way out.
- Am I in danger of foreclosure or repossession? Bankruptcy can help you keep your home, your car and important possessions. The intent is to get you back on your feet, not to leave you destitute.
- Am I being charged interest at the penalty rate? If you have multiple maxed-out credit cards or a card above the credit limit, you're likely being charged interest at the maximum legal rate. When consumer debt spirals out of control like this, bankruptcy may be your only option.
- Will it take a very long time to pay off my debts? Remember, a bankruptcy stays on your credit report for seven to 10 years. That may seem like a long time (and it is!). However, when you're in a deep enough financial hole, it may actually be the fastest way out.
- Have my employment circumstances changed? If you're in a situation where you can't earn as much income as you used to, wiping out the debts you accrued when you previously had higher income may be the right step.
- Are my debts dischargeable through bankruptcy? Bankruptcy can help with consumer debt, medical debt, personal loans, utility debt, lawsuit judgments, mortgages and car loans. It generally does not apply to student loans, debts to government agencies, back taxes, and certain other types of debt. Keep in mind that even if bankruptcy can only discharge some of your debts, it still may be worthwhile to file. That's because it will free up more money to pay off your other debts.
We can help you find the right way forward
There's a lot to consider when making the decision to declare Chapter 7 bankruptcy or Chapter 13 bankruptcy. We know that this is a decision many South Carolinians are struggling with right now due to the financial impact of the COVID-19 pandemic. We encourage you to explore your options, take our bankruptcy quiz, and take advantage of our free consultation.
Getting out of debt, even seemingly insurmountable debt, is possible. The key is to take an honest look at your situation and evaluate your debt relief options. If you're considering declaring bankruptcy, contact Benjamin R. Matthews & Associates, LLC today to find out how we can help.