The bills are piling up, and the phone keeps ringing. The stress and anguish caused by not being able to stop the never-ending cycle of debt can take a toll on the typical South Carolina resident. For many, the answer to this apparent dilemma is found in filing for Chapter 7 bankruptcy.
Chapter 7 bankruptcy can offer the individual the opportunity for a fresh start. With this kind of bankruptcy, most types of debts can be discharged. Rather than spending years attempting to just pay the interest on mounting debt, the South Carolina resident is given a clean slate and able to start over again.
While it is possible that the individual may lose some assets, these are generally ones that are considered to be luxuries. Typically, the filer is able to retain the majority of possessions, including a car and home. Of course, if these items are financed, the loans on these items will need to be reaffirmed and payments will still need to be made.
It is true that a Chapter 7 bankruptcy will remain on one’s credit report for a period of 10 years. However, for the individual who finds that filing is necessary, his or her credit report most likely already showed signs of financial struggle. By filing for bankruptcy, it is possible to begin the rebuilding process and show positive financial attributes that will assist in re-establishing a favorable credit history. Experienced legal counsel can assist in determining if bankruptcy is the best option and, if so, guide the South Carolina resident through the process.
Source: bankruptcy.findlaw.com, “Pros and Cons of Declaring Bankruptcy under Chapter 7”, March 3, 2018