Consumer debt is on the rise, and current household debt is at a record $13 trillion. This is a nearly 1 percent increase over the past quarter, which seems to be following behind the soaring stock market. However, massive amounts of household debt can be incredibly difficult to overcome, especially when a serious life change impacts income. For many South Carolina consumers, rising household debts can be best addressed through Chapter 7 bankruptcy.
Finding a fulfilling job that provides extra income for a family can be difficult, but many women thought they found the ideal solution in Lularoe, a direct sales company. In South Carolina, the clothing company is mostly known for its brightly-patterned leggings, but many women who started selling them are now dealing with insurmountable debt. Since Jan. 2016, at least 24 people filed for bankruptcy -- both Chapter 7 and 13 -- citing Lularoe as at least one of the causes.
The Administrative Office of the U.S. Courts tracks bankruptcy filings nationwide, following trends over 12-month periods. Its most recent tracking found that personal bankruptcy filings declined over the past year, indicating that the current economic state is relatively stable. Although this might come as good news for South Carolina consumers, some bankruptcy experts believe that filings could soon be on the rise.
Student loans are an ongoing problem, and it does not look as if they are going anywhere soon. With trillions of dollars in student loans, people in South Carolina and across the rest of the United States are understandably eager for a solution. Unfortunately, many student loan debtors were taken advantage of by fraudulent companies that offered relief.
The current debt that the Millennial generation carries is likely heavier than most people realize. However much of that debt is in the form of student loans, which are typically not able to be discharged through bankruptcy. However, bankruptcy can still be an effective approach for South Carolina residents who are facing insurmountable debt, even if that means freeing up the funds to put toward ongoing student loan payments.
Filing for bankruptcy is rarely a pleasant experience, but the hope of relief from debt makes the effort worthwhile for many. Chapter 7 bankruptcy offers the chance to have many unsecured debts discharged, providing a fresh start for those in South Carolina who have been struggling to keep their heads above water. Through Chapter 7, the court assigns a trustee to manage each bankruptcy and determine which assets are exempt or nonexempt. However, recent actions by bankruptcy trustees in another state have many concerned about the security of filers.
Earning, saving and investing are important parts of planning a secure future. Without warning, a medical emergency, job loss or family crisis can wipe out a savings or hinder the ability to earn. When this happens, it is understandable when someone in South Carolina fears for the protection of his or her investments, especially if it becomes prudent to file for Chapter 13 bankruptcy.
Overwhelming personal debt can create various challenges in the life of an individual. Those in South Carolina who are facing the burdens of debt may wish to overcome their current predicament, but certain aspects of the process could be holding them back. When weighing bankruptcy as an option for relief, some may worry about the potential impact a similar circumstance might have on their credit.
Consumers are not the only ones who may be affected by financial difficulties. However, when a retailer suffers financial hardships the consequences may be far-reaching. The recent filing for Chapter 7 bankruptcy protection by Alfred Angelo Bridal has left many women in South Carolina and across the country wondering what to wear on their big day.
When the mortgage or rent is due, most people understand the consequences of not paying on time. They risk paying high penalties or even losing their homes altogether. The same may be said of not paying utilities and car payments, the consequences of which include the loss of something essential. When money is tight, people in South Carolina may pay those bills first, opting to push less critical bills, such as student loans, out of their minds for now. However, this may be a serious mistake.