People burdened with mounting debt know the sacrifices that can come along with trying to manage that debt. Creating budgets for their incomes and cutting some expendable expenses in order to put more money toward paying off debt is often an option that South Carolina residents consider in order to work on their debt. However, budgeting and cutting certain expenses may not always be enough.

Bankruptcy is often an option that could help overwhelmed individuals get their finances back on track. Indeed, several individuals recently filed for Chapter 7 and Chapter 13 bankruptcies in another state. One woman facing considerable debt that exceeded her assets by more than $50,000 filed for Chapter 7 bankruptcy. As a result, her assets will be liquidated in order to be put toward her liabilities. 

Other individuals did not have such a monetary gap between their assets and liabilities, but they were still facing considerable debt. As a result, these parties filed for Chapter 13 bankruptcy. This process will allow for their liabilities to be restructured, and a court-approved repayment plan will allow them to pay back their remaining debts over time. 

If South Carolina residents are in need of a greater effort to address their debts other than simply budgeting and cutting expenses, bankruptcy could potentially be an option for them. The circumstances of each specific case will determine whether they may qualify for bankruptcy and whether Chapter 7 or Chapter 13 will best suit their cases. Additional information on these proceedings and qualifications may benefit interested parties and is available from reliable legal resources.

Source: magnoliareporter.com, “South Arkansas bankruptcies by county for the week ended Tuesday, March 8, 2016”, March 10, 2016