When individuals begin considering their debt management options, they may wonder what the different types of bankruptcy entail. If South Carolina residents are filing for personal bankruptcy, it is likely that they will either file for Chapter 7 or Chapter 13. Each option has different qualifications and proceedings, and individuals with a reliable income may be able to file for Chapter 13.
Chapter 13 bankruptcy involves a court-approved repayment plan. Though many individuals may think that this plan means that they have to repay the entirety of their debts, the process may help individuals discharge debts or only pay a fraction of what they originally owed. The plan involves making monthly payments for up to five years, though some individuals may complete their plans in a shorter amount of time.
This type of bankruptcy may also be helpful to individuals who are afraid that they could soon face foreclosure or repossession of their property. Chapter 13 may also be able to cover more debts than Chapter 7 for some individuals. Because this process involves a repayment plan rather than liquidation, a steady income is typically needed to help interested individuals qualify.
Deciding to seek help for debt problems could be the first step toward a more stable financial situation. If South Carolina residents feel like this option could help them work toward overcoming their debt, they may wish to gather additional information on the Chapter 13 bankruptcy process. Experienced bankruptcy attorneys can provide specific information for each case, if individuals would like to consult with such professionals about their circumstances.
Source: lawndalenews.com, “Bankruptcy, What’s It All About?”, March 24, 2016