People who are facing financial hardships know what they are up against. They see the bills come month after month and hear the phone ring when creditors call. If money coming in is not enough to cover their bills, no one has to tell them they are in financial trouble. Those in South Carolina who are in this situation may be perfectly aware that bankruptcy is an option. In fact, the hardest part of Chapter 7 bankruptcy may be admitting that it is time to take the step.
Chapter 7 liquidates assets and uses the money to pay back unsecured debt — that is, debt that is not attached to a collateral. In many cases, one’s home and car are typically not liquidated, although the danger of foreclosure still may exist. With the right attorney assisting with the bankruptcy, very few of a person’s assets — if any — may need to be liquidated.
Additionally, creditors of unsecured debt, such as credit cards and medical expenses, may accept amounts smaller than what a filer actually owes or even forgive the debt altogether. Child and spousal support, student loans, and recent back taxes are not usually forgiven. However, an experienced attorney may be able to negotiate with some of those creditors.
In fact, a skilled and compassionate bankruptcy attorney may be the best advocate for someone seeking relief from crushing debt. Chapter 7 bankruptcy is complex, but it also offers the hope of a fresh start. Although it is understandable for someone in South Carolina to be reluctant to take such a serious step, the possibilities that freedom from debt offers are worth considering.
Source: ebony.com, “The Bright Sides to Filing for Chapter 7 Bankruptcy”, Kara I. Stevens, Accessed on Feb. 17, 2017