According to the financial world, the American consumer is doing well. Unemployment is down, consumer spending is up and credit is readily available. While this may be good news to some South Carolina residents, it can also be a concern for others. Some residents are discovering that they are drowning in credit card debt and auto loans with no apparent way out.
What happens when someone files for Chapter 7 bankruptcy?
For many Americans, debt is simply an unavoidable fact of life. But what happens when debt piles up to the point where it is out of control? For many people facing this issue in South Carolina, personal bankruptcy is an option that may make sense. The most common of these individual bankruptcy types are Chapter 7 and Chapter 13 bankruptcy.
The pros and cons of bankruptcy
Are you worried what your extended family or close friends will think if you file for bankruptcy? Many South Carolina residents agree that the negative stigma attached to filing for debt relief causes some people to avoid their most viable options for regaining financial stability down the line. If you're able to set your worries aside, you may find that support is available, and often only a phone call away.
Should South Carolina resident file Chapter 13 bankruptcy?
Credit scores play a large part in the financial decisions that a South Carolina resident makes. Anytime one applies for a loan, the credit scores are checked. In fact, the majority of the time when one even applies for a new apartment or a new job, his or her credit score is checked. As a result, some individuals fear that a bankruptcy will have such a dramatic affect upon their credit score that they do nothing rather than take the necessary steps to get out of financial trouble.
Misconceptions about a South Carolina bankruptcy
There are a number of misconceptions associated with filing for bankruptcy. Many South Carolina residents may be concerned that they will lose everything by filing. Or, perhaps they believe that all of their friends and relatives will discover that they filed. In reality, it is unlikely that friends or family will be aware unless the individual chooses to disclose the information, and more than likely, he or she will be able to keep most if not all of his or her possessions.
Medical debt and credit cards
Debt collectors can be quite persuasive. They can often make the South Carolina resident feel as if they must make payments regardless of the situation. The simple fact is, when it comes to medical debt, the average individual often finds it difficult to keep up with the mounting debt.
