Owing a significant amount of debt can be a burden on your life. You may find that your financial struggles carry over into other areas, and you could be facing the additional stress of debt collectors, notices from creditors and constant pressure to pay. You might feel like you cannot escape these issues, and while it feels as if there is no way out, bankruptcy could be a way forward for you.
Bankruptcy is a legal process that allows a South Carolina applicant to address certain debts he or she has in an organized manner. While you understand that bankruptcy could be a beneficial and reasonable option for you, it may also be a daunting step to consider. Concerns about how this process could impact your property, such as your home and other aspects of your life, could keep you from taking this important step.
Keeping the home during bankruptcy
What happens to your home during bankruptcy could, in part, depend on the chapter of bankruptcy for which you file. Chapter 7 is liquidation bankruptcy, which means that the relinquishment of certain assets could be necessary. However, there are allowances that exempt certain types of assets from liquidation, which could include your home. Chapter 13 is reorganization bankruptcy, which means the court will organize your debts in a manner that allows you to make payments over time.
Another factor that could affect what happens to your home if you file for bankruptcy is how much equity you have in your home. If you have negative or minimal equity in your home, you may not be able to secure an exemption to keep this asset. However, keeping your home is not always the ideal option. It may be beneficial to consider if you can afford to keep the home and what decisions will be best for your future.
The intent and purpose of bankruptcy
The intent of bankruptcy is not to leave you destitute and without your property in exchange for removing some or all of your debt. As you consider this option as a way to regain your financial stability, it may be helpful to discuss your options with an experienced professional who understands bankruptcy law and can explain the legal requirements of bankruptcy. With the right information, you can make the best possible decisions for your future.