You are definitely not alone in your struggle if you happen to be employed but have still been having trouble making ends meet. Like most localized economies in the nation, South Carolina has seen its ups and downs in recent years. Just because you currently have a reliable source of income doesn’t necessarily mean you have enough to satisfy your debts.
Perhaps your family has faced a recent medical situation that has tipped your financial scales off-balance. Maybe you got married and your spouse brought several children to your household, thus adding your blessing but also to your expenses. If things have gotten a bit out of hand and you’re considering filing for bankruptcy, you’ll want to seek clarification regarding the difference between Chapter 13 and Chapter 7 so you’ll know which option best fits your needs.
Consider the eligibility factors
You may qualify for one type of bankruptcy but not another. Certain issues determine whether you should request Chapter 13 or Chapter 7. Both are sources of immediate debt relief; a review of your overall situation will help you decide which option will help you accomplish your goals. The following list includes reasons you might file for one or the other:
- If you have no means for paying back debt, you’ll likely qualify for Chapter 7.
- If you have available funds to continue making mortgage payments or to satisfy other debt, a Chapter 13 bankruptcy may create an alternate repayment schedule that allows you to retain your assets.
- Filing Chapter 13 may be the best way to go if you’re hoping to halt a foreclosure process.
- If your income exceeds the median income in South Carolina, you will not qualify for Chapter 7.
- Chapter 13 can also help you stop repossession of your vehicle.
If you think you can pay off your debts within three to five years, your lenders may agree to a rescheduled payment plan and you may be able to obtain a Chapter 13 bankruptcy. A benefit of this type of bankruptcy is that it only remains on your credit report for approximately seven years, whereas Chapter 7 tends to remain for 10 years’ time.
There’s no need to go it alone when you’re trying to resolve serious financial issues. You can speak with family members or friends who have successfully overcome similar problems in the past. You can also tap into local debt relief resources for added support.