Reed Law Firm, P.A. is a federally designated debt relief agency. We proudly help people file for bankruptcy relief under the U.S. Bankruptcy Code.
image description
Giving You Hope For a Debt-Free Future

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.

The simple fact is that once the individual has reached the point where bankruptcy is a viable option, his or her credit score is already low. At this point, the individual is having trouble making payments and is probably delinquent in making payments. The credit score has already suffered as a result of these financial troubles.

Ignoring the problem will not make it go away. However, there are steps that the South Carolina resident can take to begin to repair the financial damage and have a fresh financial start. One option is through filing for Chapter 13 bankruptcy. Under Chapter 13, a repayment plan is established that allows the individual to repay debt over a three to five-year period. At the end of this time period, remaining debt that is not excluded from the bankruptcy can be discharged.

While filing for Chapter 13 bankruptcy will most likely have a negative effect upon the South Carolina resident's credit score, it does open the door to repairing the problem and beginning the repair process. The individual can begin to rebuild the score by making affordable debt payments. An experienced attorney can help the individual determine if Chapter 13 is the appropriate choice.

Source: okcfox.com, "Consumer Watch: How a bankruptcy might not crash your credit score", Mireya Garcia, May 14, 2018

No Comments

Leave a comment
Comment Information
image description

Reed Law Firm, P.A.
220 Stoneridge Drive,
Suite 301

Columbia, SC 29210

Phone: 803-726-4888
Fax: 803-726-4887
Columbia Law Office Map

Reed Law Firm, P.A.
1807 West Evans Street,
Suite B

Florence, SC 29501

Phone: 843-679-0077
Fax: 843-679-0667
Florence Law Office Map

Reed office

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

Subscribe to This Blog's Feed FindLaw Network