It might come as no surprise that dealing with high levels of debt can be stressful, as similar issues could take a significant toll on numerous areas of your life in South Carolina. While seeking relief from debt could help protect your financial stability, choosing a path that best fits your needs can seem an intimidating task.
While bankruptcy could be a viable tool with which to pursue relief from the trials of debt, you may still have some reservations about the process. Evaluating some of the most prevalent questions regarding bankruptcy may help provide much needed insight on whether such a path might be the proper fit for your situation.
Knowing what to expect from the bankruptcy process may prove integral to preparing to make informed decisions about your options. Some common questions about this process may include:
- What are the options: Chapter 7 and Chapter 13 are two of the most common bankruptcy options and seeking guidance in evaluating the basic components of each option may be vital to choosing a path.
- What happens to debts: In Chapter 7 bankruptcy, many or most of your unsecured debts may be eligible for discharge, while a Chapter 13 bankruptcy may allow you to repay portions of your debt over time via financial reorganization.
- Will you lose assets: While Chapter 7 bankruptcy might call for the liquidation of certain assets, this might not mean that you will lose all your possessions and similar concerns might not even apply to Chapter 13 bankruptcy.
- How could this affect your credit: While filing for bankruptcy will inherently affect your credit, issues with debt could prompt similar concerns, and you may be able to begin rebuilding your credit shortly after finalizing the bankruptcy process.
While you may also have questions about how to handle debts that might not be eligible for discharge in bankruptcy, seeking relief via similar paths may help mitigate the burden of debt by freeing up income.
Choosing the best available path
This may only be a few examples of questions you might have about the bankruptcy process and seeking insight in addressing all your concerns may be vital to preparing to protect your interests. Taking steps to better understand your options may help place you in a better position in which to choose a path for relief that meets your preferences and needs. This could prove integral to preparing to pursue much needed relief via the proper outlets and help shift your focus toward pursuing a healthier financial future.