Financial struggles are a concern for many South Carolina residents. For some, the loss of income, a medical crisis or some other catastrophe has left them unable to pay their bills. For others, there is income; however, it is not enough to keep up with everything that they owe each month. When this happens, filing for bankruptcy may be the appropriate solution.
For those who have minimal income or are unable to make payments on their mounting debt, Chapter 7 bankruptcy may be the appropriate choice. Under Chapter 7 bankruptcy, the majority — and sometimes all — of the individual’s debt can be discharged. Assets that are not considered to be exempt may be sold to help offset this debt; however, the individual is typically able to retain the majority of his or her assets that are not used as collateral of a debt being discharged.
For those who are able to make payments but need to restructure their financial situation to make it more manageable, Chapter 13 bankruptcy may be the appropriate choice. Under Chapter 13 bankruptcy, a three or five year repayment plan is presented to the court for approval. At the end of this time period, remaining unsecured debt may be discharged. The benefit of this option is that the individual is able to continue making payments at a more manageable level and retain desired assets.
When a South Carolina resident finds him or herself facing financial struggles, there are options available. Many have found that bankruptcy provides the needed relief while allowing the individual to start over and rebuild his or her financial future. An experienced attorney can help one determine the best way to address his or her financial dilemma.