Reed Law Firm, P.A. is a federally designated debt relief agency. We proudly help people file for bankruptcy relief under the U.S. Bankruptcy Code.
image description
Giving You Hope For a Debt-Free Future

SOUTH CAROLINA
BANKRUPTCY ATTORNEY

Chapter 13 bankruptcy can help forestall a foreclosure

In somewhat surprising news, a study conducted by a major state university has determined that bankruptcy may be a valuable tool in fighting a foreclosure. South Carolina residents may be interested to know that a Chapter 13 filing can forestall a bank's attempt to repossess a home based on debt. While this is not a "cure-all" measure, it certainly represents a positive step in the right direction for those suffering from debt of this kind.

According to the study, individuals who chose to file for Chapter 13 were five times more likely to keep their homes than those who did not. The reason for this is essentially that Chapter 13 is a debt repayment plan designed to chip away at existing debt over a longer period of time. Unlike Chapter 7, which attempts to address debt immediately by selling assets to pay down creditors, Chapter 13 gives individuals three to five years to do the same thing.

Generally speaking, a court will work with an individual to develop a sensible and realistic monthly payment plan to work down debt. Often, at the end of the prescribed period, remaining debt can be forgiven by the court. While banks will still attempt to foreclose on these individuals, a Chapter 13 filing can "buy time" for those individuals to satisfy debts without losing their home.

While a Chapter 13 bankruptcy filing may be a scary thought to many South Carolina residents, it may be fair to say that losing a home is considerably scarier. Bankruptcy is actually a very effective tool in the arsenal of an individual fighting debt. Given the option to pay off over the long-term and have some debts forgiven, it is certainly a more pleasant option than foreclosure.

Source: NASDAQ, "Bankruptcy Can Save Your Home From Foreclosure", Motley Fool, Aug. 16, 2014

Source: NASDAQ, "Bankruptcy Can Save Your Home From Foreclosure", Motley Fool, Aug. 16, 2014

No Comments

Leave a comment
Comment Information

Contact Us

For more information or to schedule an appointment with an experienced lawyer regarding a bankruptcy filing, please contact us.

image description

COLUMBIA OFFICE
220 Stoneridge Drive,
Suite 301
Columbia, SC 29210
Phone: 803-807-2565
Fax: 803-726-4887
Email | Map & Directions

FLORENCE OFFICE
1807 West Evans Street,
Suite B
Florence, SC 29501
Phone: 843-679-0077
Fax: 843-679-0667
Email | Map & Directions

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

image description

Reed Law Firm, P.A.
220 Stoneridge Drive,
Suite 301

Columbia, SC 29210

Phone: 803-726-4888
Fax: 803-726-4887
Columbia Law Office Map

Reed Law Firm, P.A.
1807 West Evans Street,
Suite B

Florence, SC 29501

Phone: 843-679-0077
Fax: 843-679-0667
Florence Law Office Map

Reed office

‚Äč