Having fears when it comes to filing for bankruptcy is understandable. Many South Carolina residents may worry that in dealing with their debt balances they will lose all of their possessions and be unable to regain credit in the future. Luckily, these issues are not necessarily true. Even individuals who file for Chapter 7 liquidation bankruptcy will likely not lose everything.

In the majority of cases for Chapter 7, though liquidation takes place, there are items that may be considered exempt. These exemptions are often items that are needed to carry out day-to-day life. Of course, there are variations to what is considered exempt property, and finding out information for a particular area would most likely be beneficial for those concerned.

Parties may also worry that filing for bankruptcy means that they have failed. In fact, bankruptcy may be a step toward improvement rather than failure for many people. When individuals face substantial debt issues, it is likely that their credit scores are below a poor rating. As a result, it is not unusual for those credit scores to actually increase by a small margin after completing bankruptcy. 

If individuals do not have all the facts when it comes to bankruptcy, they may fear an option that could actually be quite helpful. Interested South Carolina residents may want to find out more information on Chapter 7 bankruptcy or other debt relief options that could allow them to work toward a better financial future. If they believe they are ready to move forward with such a relief outlet, they may want to discuss their filing options with an experienced attorney.

Source: nerdwallet.com, “5 Bankruptcy Myths Dispelled”, Sean Pyles, June 7, 2016