Financial crises are usually temporary; that’s the good news. More good news is that there are often several debt relief options available that can help you get things back on track when situations arise that threaten your financial stability. You may be understandably frightened if lenders are mentioning words like foreclosure or creditors are threatening litigation.  

It’s always best to try to remain calm and gather as much information as possible to help you make financial decisions that resolve the problem at hand and set the tone for a stronger financial future. If you’re considering filing for bankruptcy, timing is important because when you file may affect which of your debts you can discharge. You may also be relieved to know that you don’t have to go it alone when trying to find viable solutions to serious financial problems because support is available.  

First things first 

Before you can file for bankruptcy, you must determine if you are eligible. Since there are different types of bankruptcy, you’ll want to review all options and seek counsel as to which course of action may be best in your particular situation. You may possibly qualify for one type of bankruptcy but not another. For instance, if you earn a certain amount of income, you can file for Chapter 13 but not Chapter 7.  

Types of debts you can discharge 

There is no exact answer to this question because various issues and circumstances may affect your situation; however, there are certain debts that are usually dischargeable through bankruptcy. These would include credit card debts, medical bills and personal loans. There also debts that are not dischargeable, such as child support or court-ordered compensation you must pay as a result of causing injury to someone in a car accident. Make sure you understand which debts you can discharge and which you can’t in order to avoid complications.

Overcoming negative stigma 

When you think of filing for bankruptcy, you may feel embarrassed or worried about what your friends and extended family members will think. The fact is that many South Carolinians choose this form of debt relief, which often allows people to keep their homes, start fresh and rebuild financial stability. No two situations are the same, so it pays to explore all options and make confident, informed decisions that can move you toward a debt-free future.