Reed Law Firm, P.A. - bankruptcy

Columbia: 803-807-2565

Florence: 843-536-0073

What are the signs that it's time for debt relief?

The decision to file for bankruptcy does not often come easily. Someone in South Carolina may wait until all other options are exhausted, such as when the house is in foreclosure or his or her family is ready to fall apart, before realizing the benefits of bankruptcy. While everyone's situation is different, there are some signs that may help a person decide it may be time to consider whether Chapter 7 or Chapter 13 debt relief is the best option.

Senior citizens who have considerable debt may have no resources to pay it down. Pensions or other income may disqualify a senior from bankruptcy, but if someone has no income or very little, he or she may find help through bankruptcy. Seniors and others may have debt that is primarily medical bills. In fact, 78 percent of those who seek bankruptcy protection do so because of medical expenses. Medical debt is fast replacing credit card debt as the most common debt burden.

If a divorce left two former spouses sharing debt responsibilities, one may be surprised when the other spouse declares bankruptcy. This may be another indicator that both ex-partners are ready for bankruptcy protection. In fact, a former spouse who files for bankruptcy may have his or her debts discharged, and the other spouse could be held liable for debts in the names of both individuals. Both former spouses may wish to consider filing for bankruptcy jointly to avoid this situation.

Having unmanageable debt and little or no income is a common reason why people seek Chapter 7 or Chapter 13 protection. While many in South Carolina worry about what a bankruptcy will do to their credit, continuing in a pattern of late payments and overextended credit may already be damaging one's score. Discussing the options for debt relief with an attorney may be the first step to a fresh financial start.

Source: gobankingrates.com, "When to File for Bankruptcy", Morgan Quinn, Accessed on Feb. 24, 2017

No Comments

Leave a comment
Comment Information
Email Us For a Response

Contact Our Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Columbia Law Office
220 Stoneridge Drive, Suite 301
Columbia, SC 29210

Phone: 803-807-2565
Fax: 803-726-4887
Columbia Law Office Map

Florence Law Office
1807 West Evans Street, Suite B
Florence, SC 29501

Toll Free: 843-536-0073
Fax: 843-679-0667
Florence Law Office Map