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Columbia Bankruptcy Law Blog

Credit card debt and the typical South Carolina family

Credit cards make it easy to acquire both wanted and needed items. While it may still be a few days until payday, the South Carolina resident can simply stop by the grocery store and stock up by charging items on the credit card. Additionally, rather than waiting until funds are available, one can go ahead and purchase a new outfit or other desired item. These may seem like small things, but over time, the South Carolina consumer can find him or herself with more debt than can easily be handled.

In some cases, individuals find themselves in credit card debt due to overspending and not paying attention to the family budget. In other cases, the individual's financial picture suddenly changes due to the loss of a job or divorce. Others find it necessary to use credit cards to pay for medical expenses. Regardless of the reason behind the credit card debt, the outcome is still the same.

The connection between credit card debt and your love life

South Carolina readers know their finances can have an impact on various areas of life, including their relationships. Money and financial hardship can cause a significant strain on your relationship with your partner or your significant other, eventually causing a permanent and irreparable rift between the two of you.

Studies show that debt is a financial issue that can have a considerable impact on a person's love life. In fact, a recent survey finds that three in four people believe that credit card debt is a reason to avoid or leave a relationship with a person. If you are dealing with a substantial amount of debt and are unable to manage it on your own, you may find it beneficial to consider the legal ways to confront this situation and preserve your personal relationships.

Joey Lawrence files for bankruptcy after decrease in income

Many people think that money makes the world go round, and unfortunately, they are often not wrong. In order to carry out tasks, meet basic needs and attend to many of life's obligations, money is needed. However, financial stability can be difficult to come by, and individuals who are struggling may not know where to turn. Fortunately, there are debt relief options like bankruptcy that may be able to help.

South Carolina readers may believe that celebrities have a lock on financial stability, but that is often not the case. In fact, it was recently reported that actor Joey Lawrence filed for bankruptcy last year. Apparently, Lawrence and his wife had amassed over $400,000 in debt due to back taxes, car loans, unpaid rent, credit card balances and other liabilities.

South Carolina resident struggling with debt

The bills are piling up, and the phone keeps ringing. The stress and anguish caused by not being able to stop the never-ending cycle of debt can take a toll on the typical South Carolina resident. For many, the answer to this apparent dilemma is found in filing for Chapter 7 bankruptcy.

Chapter 7 bankruptcy can offer the individual the opportunity for a fresh start. With this kind of bankruptcy, most types of debts can be discharged. Rather than spending years attempting to just pay the interest on mounting debt, the South Carolina resident is given a clean slate and able to start over again.

More consumers able to pay off credit card debt with savings

The country is experiencing decreases in unemployment and increases in household income, both positive signs for consumers in South Carolina and elsewhere. However, many families are still struggling financially, particularly when it comes to credit card debt. Consumers in the nation have over $900 billion in credit card balances, which roughly equates to $7,300 per household. While this amount is increasing, a growing of people have adequate savings to pay off their credit cards if necessary.

According to an online personal finance website, almost 60 percent of families have sufficient funds to eliminate their debt. However, 21 percent of the people surveyed indicated that they did not have enough money to pay those balances. Furthermore, 12 percent responded that they had no savings at all. This indicates that many households are experiencing financial uncertainty.

Bankruptcy attorney helps clients decide issues re collateral

In South Carolina, when one files a personal bankruptcy, one of the benefits available is that a secured loan transaction can be erased simply by returning the collateral that stands as security for the loan. Thus, surrendering a car will put to rest the creditor's claims. There may be a deficiency amount that the creditor will claim, but in a Chapter 7 straight bankruptcy, the bankruptcy attorney will see to it that any deficiency will be discharged as an unsecured debt.

In a Chapter 13, which is a payment plan, the surrender of collateral will generally end the creditor's claim. However, in the case of a deficiency still due, it may be filed as an unsecured claim in the Chapter 13. Unsecured claims will generally get paid some very small percentage of the debt that is claimed. The difference, therefore, where the collateral is surrendered, is of little significance between a Chapter 7 or a Chapter 13 under the foregoing examples.

Is the root of your health problems in your credit card debt?

Most Americans use credit cards, and many credit card holders have debt they carry over from month to month. While many people are able to effectively manage these balances, there are times this type of debt becomes unmanageable, leaving a South Carolina consumer struggling with minimum payments, accumulating interest and receiving calls from creditors. 

The stress of credit card debt can be significant. In fact, there is evidence to suggest that this debt can actually lead to health problems and other issues. The amount that Americans owe on credit cards is the highest it has even been, amounting to approximately $1 trillion. Of the people who have credit card debt, the majority say that they regret it, expressing regret over how their spending led to stress.

Settling credit card debt in South Carolina

Credit card debt can put a damper on anyone's finances. For many people, credit cards are sometimes utilized to purchase necessary items before payday. With continued use, however, consumers may overuse their cards while incurring high interest rates that their credit card companies charge. For many, paying off this debt is a top priority; therefore, South Carolina residents are advised to understand their options when settling credit card debt.

The average credit card debt in U.S. households continues to rise at a steady pace. For many consumers, settling the debt may be the only option, especially when minimum monthly payments become overwhelming. When settling a credit card debt, the consumer and the creditor negotiate the bill balance, ultimately allowing the consumer to pay less than what is owed.

South Carolina residents facing foreclosure

One of the most coveted goals for South Carolina residents is owning a home. This American dream comes with a lot of rewards but also many responsibilities. As the excitement of being a homeowner wears off, the true cost of owning a home can sometimes come as a shock. South Carolina residents are advised to understand the risk associated with home ownership and what to do should their home become subject to foreclosure.

There are many reasons why some homeowners fall behind on their mortgage loan payments. Some of those may include buying a home that was more than they could afford, a second mortgage or an unexpected life event. Whatever the reason may be, the foreclosure process can be extremely lengthy; therefore, it is important for homeowners to understand the process.

Which is better, Chapter 7 or Chapter 13 bankruptcy?

If you stepped into 2018 with serious financial problems, you are definitely not alone. In South Carolina and throughout the nation, many people are currently trying to overcome serious financial obstacles. For some, unexpected job loss or medical crisis quickly turned financial stability to chaos. On the other hand, you might simply be one of many whose spending got out of hand and credit card bills began piling up until your debt outweighed your financial resources. The good news is that most financial problems are temporary.

Much depends on the details of your situation as well as what type of options you access to help you get things back on track. The latter may prove challenging, especially if you haven't a clue as to what types of debt relief options are available in your situation. You'll be glad to know there is guidance support available in your area. Many people use Chapter 7 or Chapter 13 bankruptcies to resolve their financial problems. The question is, how can you determine which option would help you most?

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