Those considering filing for bankruptcy may wonder what the process entails. Bankruptcy proceedings can become complex, and South Carolina residents interested in this option for handling unmanageable debt may wish to find out more information. There are various steps to the process and different proceedings from which to choose.
Filing for bankruptcy could possibly put a stop to any pending repossession actions. Some parties may be interested in utilizing bankruptcy for this purpose or to halt other collection efforts. An “automatic stay” is issued once a bankruptcy petition is filed, and it mandates that creditors cease all collection efforts, pending the further order of the court. If creditors continue to attempt to collect on debts after becoming aware of the stay, they could face significant consequences.
One of the first considerations is determining what chapter of the Bankruptcy Code may be most appropriate to a particular situation. Chapter 7 is the most common type of proceeding, and that process involves liquidation of the filer’s non-exempt assets. However, those who earn over a certain amount of income may not qualify for Chapter 7. They do still have options, however, and Chapter 13 may be able to help them create a court-approved repayment plan.
South Carolina residents may be relieved to learn that they could have viable options for handling their substantial debt. Gathering information on bankruptcy and working to determine whether they may qualify could be the first steps toward achieving a fresh financial start. If they would like to discuss their specific cases, they may wish to consider consulting with an experienced debt relief attorney.
Source: The Huffington Post, “Some Bankruptcy Legal Facts and Suggestions”, Brad Reid, Feb. 3, 2016