Reed Law Firm, P.A. - bankruptcy

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Columbia South Carolina Bankruptcy Law Blog

What is the Chapter 7 means test?

Chapter 7 bankruptcy is one of the most popular bankruptcy chapters among consumers. This is because the process is over very quickly in comparison to other options. In addition, Chapter 7 bankruptcy filers tend to benefit from large debt discharges.

However, Chapter 7 bankruptcy is not available to all debtors. In order to qualify, you must pass a means test. This test is conducted to verify whether you have an income that is sufficient to pay back your debts in a realistic time period. If your income is not deemed to be sufficient, you will be able to file for Chapter 7 bankruptcy.

Are there benefits to going through foreclosure?

Struggling financially and living beyond your means can feel very stressful, and you may spend a significant amount of time thinking about how you can get yourself out of the situation you are in. If you have been missing your mortgage repayments, you may also have received threats of foreclosure from your bank.

Foreclosure is the process of the mortgage provider taking ownership of your home and selling it to cover the debts that you owed. As a result of foreclosure, you will lose ownership of your home, which is never a good situation to be in. However, sometimes foreclosure can have benefits that will help you to move forward with your life.

Changing your lifestyle to fight credit card debts

Certain chapters of our life can be busy and stressful, and instead of being mindful of the way in which we spend our money, we can easily become complacent. The availability of credit cards makes it easier than ever for consumers to spend money that simply isn't theirs. This can spiral out of control if it is not properly managed.

If you have recently realized the extent of the credit card debt you have accumulated, it is important that you start considering the ways you can take action. By making simple changes in the way that you live your life, it can be possible to address your debts effectively.

Hiding from repossession can double your trouble

Your vehicle is an important part of your life. More than a convenience, your car gets you to and from work, allows you to keep your appointments, and provides a way to transport your family to the places they need to be. Without your vehicle, you may have no choice but to find other options, some of which are expensive and others, embarrassing.

However, if you have fallen behind on your car payments, even one payment behind, you may be at risk of losing your vehicle to repossession. The loan application you signed included repossession rights for the lender, and most car loan lenders are quick to exercise that right. If you are concerned that your vehicle is in danger of repossession, you may be tempted to hide it from the repossession company. You may be surprised to learn how much trouble that can bring you.

Why Chapter 13 bankruptcy could be the right choice for you

If you are struggling with debts that you see no way out of, you may be considering the possible benefits of bankruptcy. The bankruptcy process subjects the debtor to the rules of the bankruptcy court, which allows for special actions that can benefit them, such as relief from creditor actions and debt discharges.

It is very common for debtors to be confused about which bankruptcy chapter to file with, however. Two of the most common options for individual debtors are Chapter 7 and Chapter 13 bankruptcy. The following are some reasons why filing for Chapter 13 bankruptcy might benefit you.

Should I use a settlement company to get out of debt?

You may be hearing others in South Carolina complaining about how bad the economy is. This is a perennial worry. No matter how good things are for big industries and investors, the average person still struggles to make ends meet. Perhaps you work more than one job, buy mostly generic groceries and plan to drive your old car as long as you can keep it running. With these sacrifices, you can make your paychecks stretch.

What do you do when those tricks no longer help? When the monthly payments on your debts are no longer affordable, you may spend a great deal of time trying to figure out how to fix things. You may have seen commercials on TV or ads online about debt settlement companies who promise to wipe out your debt in a relatively short period of time. This may seem like the answer to your problems, but you may wonder whether these companies keep their promises.

Is bankruptcy the best way to address medical debt?

Medical debt can be crippling because your illness will likely make it difficult for you to work to pay back these debts. Additionally, the stress of debt accumulation can prevent you from being able to recover from your illness fully.

It is important to prioritize your health over everything else. This means that you should try not to let the burden of your debts affect your mental state. Being proactive when possible to address your debts could help you to feel less strained by the medical debts that you have accumulated.

Which assets will be liquidated in Chapter 7 bankruptcy?

Chapter 7 bankruptcy is a popular choice among individual debtors because it makes it possible for them to have a large number of debts discharged. However, the process will also require that a significant amount of their assets is liquidated in order to pay back the debt.

It is important that you fully understand the process of asset liquidation in Chapter 7 bankruptcy before filing. This will help you to be fully prepared and in control.

How to deal with surprise medical expenses

There’s a reason why the news is constantly pumping out story after story about people struggling to deal with their medical bills. It’s because health care expenses can eat up a serious chunk of your budget, and surprise medical expenses can be absolutely crippling.

You hear about stories like the woman who got a bill for $4,727 for an appendectomy at an in-network hospital, and you think, “I hope that never happens to me.” But it could. Even if a hospital is in your insurance network, a surgeon might not be. Or the doctor could order a procedure that your insurance doesn’t cover. These unexpected medical bills can be horrific. One man from Texas recovered from a heart attack only to be slapped with a bill of nearly $109 thousand.

A foreclosure is bad for your health

When you get that foreclosure notice, times are already tough. You are having financial problems, and you can't make ends meet. You wish you could pay the mortgage, but it's just not possible. That brings on a lot of stress and takes an emotional toll.

It's probably just going to get worse, according to researchers who looked at the toll a foreclosure takes on both mental and physical health. The results were very clear: In both areas, people tended to see a notable decline in health while going through a foreclosure.

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