Are you considering bankruptcy as a debt relief option but aren’t sure what it can really do for you? You are not alone. Many South Carolina residents have been in your shoes. Taking the leap and filing for Chapter 7 can be frightening, especially if you do not know exactly how it will help you in the long run.
The biggest benefit of a Chapter 7 filing is debt discharge. How does this work?
What will debt discharge do for me?
If your Chapter 7 filing receives court approval, certain debts will qualify for discharge. This means that you will no longer have to pay those creditors. You will be free of your debt obligation.
This happens almost immediately after the court approves your bankruptcy petition. The court just has to send notice to all affected creditors. Once the court does this, creditors can no longer require you to make payments.
From the start of your bankruptcy petition to discharge takes around 90 days. It can take a bit longer, though, if your creditors choose to filed objections to your petition.
Are all debts discharged?
No. Certain debts do not qualify for discharge. These include:
- Alimony and child support
- Student loans
- Civil/Criminal fines and restitution
- Certain taxes
While bankruptcy may not discharge these and other debts, clearing out other debts can make it easier for you to put funds towards these financial obligations.
Will creditor harassment stop?
After a bankruptcy petition receives approval, creditors are no longer allowed to contact you in order to collect on the discharged debt. If they do, you may take legal action against them. This can result in the company having to pay fines, and you may even be able to seek compensation for any undue stress you experience as a result.
Get help with your Chapter 7 filing
While a Chapter 7 filing may not be perfect, it can have a positive impact on your financial situation and grant you a fresh start if approved. Still not sure? Have some questions? An experienced attorney will have the ability to answer any questions you have about this and other debt relief options that may be available to you. Your attorney can provide further assistance in pursing the debt relief option that will best benefit your circumstances.