A great deal of misinformation is often circulated when discussing the topic of bankruptcy. For many South Carolina residents, the idea of filing for Chapter 7 bankruptcy can be equated with all manner of negative decisions, but the reality is for many people, bankruptcy is the most sound financial option. In cases of significant debt, bankruptcy can provide the relief that allows individuals and families to recover from loss and get back on the right track.
Generally speaking, bankruptcy is a legal process wherein a federal court reviews debts and liabilities, as well as tracks assets in an effort to gain a clear picture of the overall financial situation. Once this assessment is complete, the court determines what amount of the assets can be liquidated to pay down creditors. The court also takes into consideration debts that can be discharged — these are often referred to as “unsecured debts” and include medical and credit card debt.
It is important to note that before an individual can file for bankruptcy, a credit counseling course must be completed. After filing, further educational courses may also be required. It is also advisable to seek out the support of an experienced bankruptcy lawyer, who can help to make sense of the intricacies of the bankruptcy process.
Filing for Chapter 7 bankruptcy is a big decision. South Carolina residents facing unmanageable debt may benefit from such a filing, but it requires careful consideration as well as a comprehensive understanding of how the process works. With the support of a bankruptcy attorney, this process can light the way out of the shadow of debt.