Chapter 7 bankruptcy is a liquidation process that wipes out most unsecured debts. An automatic stay applies, which protects you from collection actions while your bankruptcy is pending. Once your Chapter 7 bankruptcy is finalized, the debts addressed will be cleared away.
If you have a debt that someone cosigned for you, your Chapter 7 bankruptcy filing will not affect their financial responsibility. In fact, the cosigner specifically agrees to cover the debt if the primary borrower fails to fulfill their financial responsibility. As such, cosigners are legally obligated to cover all the following:
Once you file for bankruptcy, your creditors can no longer seek payment from you. This motivates most creditors to pursue payment from cosigners, who remain subject to collection practices.
In order to protect a cosigner or cosigners in a Chapter 7 bankruptcy, you have the option of reaffirmingyour debt with the creditor, which means signing a new agreement. You could also continue to voluntarily make all the necessary payments for the cosigned debt that was discharged.
With a Chapter 13 bankruptcy, the court will not only issue an automatic stay that protects you from collection actions but also one that protects your cosigners. The cosigner’s stay will extend through your repayment plan.
Under some circumstances, a creditor can request that the bankruptcy court lift the cosigner stay. A prime example of this is when a cosigner benefits from the loan they cosigned, such as if they drive the car they cosigned a loan for.
Your Chapter 13 repayment plan will ultimately determine whether your cosigners are protected financially. If your three- to five-year repayment plan includes paying the cosigned debt in full, the person who cosigned for you is protected. If only part of the balance will be paid, however, the creditor retains the legal right to seek the remaining balance from your cosigner.
In other words, it’s complicated. Seek the professional legal counsel you need.
Our formidable Florence bankruptcy attorneys at Reed Law Firm skillfully champion the rights of clients throughout the state, and we’re here for you, too. Our knowledgeable legal team cares about you and your case, so please don’t put off reaching out for more information by contacting us online or giving our firm a call at 843-679-0077 today.
]]>When you file for bankruptcy in South Carolina, an automatic stay is implemented. This is a legal injunction, and it puts an end to most collection practices during your bankruptcy proceedings. In addition, it also blocks utilities from being shut off, which can help you avoid turmoil at home.
Upon your initial filing for either Chapter 7 or Chapter 13 bankruptcy, the stay will last for 20 days regarding your utilities. It applies to all the following:
These play a key role in how your home and family function, and the stay associated with bankruptcy can make a big difference. It is important to note that time is of the essence, so reach out for skilled legal guidance today.
There are several important considerations to keep in mind in relation to bankruptcy and your utilities.
If your utility services have already been disconnected, filing for bankruptcy is unlikely to trigger their automatic reconnection. Working out a payment plan for your outstanding balance will very likely be required, and a knowledgeable bankruptcy lawyer can help.
The stay on your utilities only applies to those bills accrued prior to your bankruptcy filing. This means you will be responsible for paying for your utilities in full moving forward. You may, however, have options, such as setting up a payment plan that averages your monthly bills across the year or paying reduced rates, if you qualify.
Chapter 7 bankruptcy is a liquidation process, which means that most unsecured debts can be wiped out. Because utility bills are unsecured debt, your arrears can be fully discharged. Chapter 13 bankruptcy, on the other hand, amounts to a financial restructuring. As a result, a portion of your outstanding utility bills is likely to be incorporated in your repayment plan.
Our capable Florence bankruptcy attorneys at Reed Law Firm, serving clients throughout South Carolina, will leave no stone unturned in our focused efforts to stop your utilities from being turned off and to revitalize your finances in the process. Learn more by contacting us online or giving our firm a call at 843-679-0077 today.
]]>The primary forms of personal bankruptcy in South Carolina are Chapter 7 and Chapter 13. Chapter 7 is a liquidation process that discharges most unsecured debt in a relatively short period. Each filer, however, must pass a strict means test, and non-exempt property can potentially be sold to help cover their debt.
Chapter 13 bankruptcy, on the other hand, is a financial restructuring, which results in a payment plan of from three to five years. This means you can keep your property, such as your home and car, but you must keep up with the payment plan you agree to in the bankruptcy.
There are certain debts that can’t be discharged in bankruptcy. If you file for Chapter 7 bankruptcy, you’ll remain responsible for repaying these debts. And if you file for Chapter 13 bankruptcy, you’ll need to cover these debts in full through your repayment plan. Prime examples of non-dischargeable debts include the following:
There are certain debts that may not be dischargeable in a Chapter 7 bankruptcy. This generally occurs when a creditor challenges the request to discharge a debt, and the presiding judge declares the debt non-dischargeable as a result. Common examples include:
Our seasoned bankruptcy attorneys at Reed Law Firm have earned an impressive reputation for faithfully serving clients throughout Columbia and the State of South Carolina, and we’re here for you, too. For more information about everything we can do to help, please don’t delay contacting us online or giving our firm a call at 803-726-4888 today.
]]>Many employees in Columbia and throughout the area require security clearances for the work they do. This is based on the job market’s heavy concentration of defense contractors, federal law enforcement, and the military. If your current job or your career aspirations require a security clearance, it’s important to remain within the strict guidelines that apply, and they include a financial component. While many people worry that filing for bankruptcy will automatically prevent them from obtaining or maintaining a security clearance, the reality is often the opposite. Significant unresolved debt, delinquent accounts, and ongoing financial instability can raise concerns during the clearance review process. In many situations, filing bankruptcy demonstrates that an individual is taking responsible steps to address financial problems and regain control of their finances. In fact, some people pursue bankruptcy specifically because unresolved debt has become an obstacle to obtaining or renewing a security clearance. Ultimately, bankruptcy alone will not necessarily bar you from maintaining or obtaining a security clearance and may actually improve your chances by resolving the financial issues that could otherwise create concerns.
When it comes to granting security clearances, each case is considered based on its individual circumstances. While financial responsibility is a key consideration, all the following factors also play a role:
If your history speaks to your overall reliability and trustworthiness, it bolsters your chances of obtaining and maintaining security clearance.
Many people are under the impression that bankruptcy signals financial irresponsibility, but this isn’t necessarily the case. On the contrary, bankruptcy is a legal tool that is used to strategically address financial concerns before they become unmanageable.
Usually, bankruptcy alone does not rise to the level of revoking one’s security clearance. Filing for bankruptcy can, however, trigger an investigation or inquiry regarding your security clearance. Informing your security officer prior to filing demonstrates your commitment to transparency, though this is not necessarily an obligation.
The root cause of your bankruptcy will play a key role in whether it affects your security clearance. If the debt you are discharging stems from an event that was generally beyond your control, it’s unlikely to be considered a sign of financial irresponsibility. Prime examples include:
These are some of the most common reasons for bankruptcy filings. And they highlight the fact that most filers are intent on addressing financial concerns head-on, which is proactive rather than irresponsible. Seeking bankruptcy for more frivolous reasons like overspending, financial misconduct, or failure to address tax obligations, however, is a different matter.
Our dedicated bankruptcy attorneys at Reed Law Firm, P.A., serving Columbia and the State of South Carolina, are committed to helping you resolve your financial concerns through a well-considered bankruptcy and to helping you protect your security clearance in the process. Learn more by contacting us online or giving our firm a call at 803-726-4888 today.
]]>To begin, it is important to point out that many companies billing themselves as national bankruptcy firms are anything but. It costs very little to acquire a name that makes desperate consumers believe an enterprise affords invaluable legal guidance related to bankruptcy.
Often, however, the underlying operations are bankruptcy referral companies or lead generators. This means they gather sensitive financial information from consumers in need and sell it to unknown firms, which can lead to less-than-optimal results and may be damaging outright. Discussing your specific situation with a savvy South Carolina criminal defense lawyer from the start sets the stage for a better outcome and is always advised.
Law firms that work with bankruptcy clients throughout the nation often lack a nuanced understanding of South Carolina’s unique bankruptcy laws. And this can leave you vulnerable to inferior results. Consider each of the following primary concerns:
South Carolina has a three-year statute of limitations when it comes to unsecured debt, and this can directly affect bankruptcy cases, which makes it worthy of focused attention. After this timeframe has elapsed, the unsecured debt becomes time-barred from recovery through legal action. South Carolina bankruptcy attorneys are attuned with the intricacies of time-barred debt, while the related benefits might be lost on a national company.
Bankruptcy is a complex legal process that is guided by both federal and state laws. Our reliable bankruptcy attorneys at Reed Law Firm, P.A., dedicate their practice to fiercely advocating for the financial rights of our valued clients in Florence and throughout our great state. We have reserves of experience successfully navigating the intersection of state and federal bankruptcy laws, and we are here to help. Learn more about everything we can do for you by contacting us online or giving our firm a call at 843-679-0077 today.
]]>Debt-management plans (DMPs) are generally negotiated by nonprofit agencies that attempt to eliminate late fees and obtain lower interest rates from creditors. Under a DMP, you would make one payment to the involved agency, which would, in turn, distribute the money according to the terms negotiated on your behalf.
While a DMP comes with benefits like reducing your monthly payments and stopping the endless calls from creditors, it can take years to pay off the underlying debt. Additionally, not all creditors are interested in this form of negotiation.
The idea behind debt consolidation is rolling several debts into one primary debt and making it more manageable in the process. Debt consolidation seeks better loan terms, and it can be a decent option if you have a steady income and a solid credit score that can land a reasonable interest rate. Again, however, debt consolidation doesn’t alter the amount of debt you’re responsible for, which is generally the primary concern.
Bankruptcy is a federal legal process that offers a fresh financial start and often discharges a considerable amount of debt. Bankruptcy is legally challenging, but the financial relief afforded can make a big difference in your financial future. South Carolina implements state-specific bankruptcy rules that guide the process, which makes it in your best interest to work closely with a respected local bankruptcy lawyer.
Chapter 7 bankruptcy discharges most unsecured debts, and it comes with all the following benefits:
Chapter 13 bankruptcy is considered a financial reorganization that is best suited to those who earn a regular income. The terms for Chapter 13 bankruptcy involve court-supervised payment plans of from three to five years.
Bankruptcy can afford considerable relief, which includes eliminating many of the related stressors. In fact, the benefits of paving the way toward a better financial future through a well-considered bankruptcy can be difficult to overstate.
Our seasoned bankruptcy attorneys at Reed Law Firm, P.A., are proud to serve clients in Columbia and throughout the area, and we have the legal skill and experience to help you resolve your case favorably. Learn more by contacting us online or giving our firm a call at 803-726-4888 today.
]]>Too many would-be filers are terrified that bankruptcy means liquidating all assets, which means the loss of everything necessary to build financial stability, including one’s car and home. Every state, however, has its own exemptions, and some states allow filers to choose between state and federal exemptions. In the State of South Carolina, you must implement the exemptions it allows, and this highlights the importance of having a South Carolina firm in your corner.
The most common exemptions allowed in South Carolina bankruptcy cases include the following:
South Carolina is not interested in leaving those who pursue bankruptcy without the means they need to rebuild their finances and to continue living productive lives. Turning to a well-respected South Carolina bankruptcy firm can help you maximize your exemptions.
The benefits of having a local bankruptcy lawyer skillfully handling your case come with the additional benefit of their being well-versed in how the specific district court operates. This translates to having a clearer understanding of the path your case will take and of being better positioned to engage in successful negotiations or to resolve any issues that arise favorably. In the end, it can be difficult to overstate the positive impact of retaining a long-standing South Carolina bankruptcy firm from the start.
Our capable bankruptcy attorneys at Reed Law Firm, P.A., have earned a solid reputation for championing the financial rights of our valued clients throughout the Columbia area. We bring our expansive knowledge of state laws and local practices to every case we take on, and it shows. For more information about what we can do to help, please don’t delay contacting us online or giving our firm a call at 803-726-4888 today.
]]>There are several types of bankruptcy, but the two primary forms for individuals who are facing crushing debt include Chapter 7 and Chapter 13. Each is distinct and must be considered in the context of the unique circumstances that apply.
Chapter 7 bankruptcy is often called straight bankruptcy or liquidation bankruptcy. This is the most common form of bankruptcy, and it requires the filer to sell off their assets in order to repay their creditors.
Chapter 7 is generally a better option for those who earn below the median income for South Carolina or who pass what is called the means test. This form of bankruptcy is the most straightforward, and these cases are generally resolved more quickly. Often, those who file Chapter 7 bankruptcy have no assets beyond the basics, which means that no property is seized.
There are several important steps that must be followed for Chapter 7 bankruptcy, including:
Chapter 13 bankruptcy is best suited for individuals who earn or receive a regular income. In these cases, assets aren’t liquidated. Instead, filers are allowed to repay their creditors over time and to retain their assets in the process.
With Chapter 13 bankruptcy, debtors can avoid foreclosure and aren’t required to liquidate their assets. Further, some unsecured debt may be discharged once the repayment plan is successfully completed. In other words, Chapter 13 can provide you with a much-needed financial do-over.
It’s also important to keep in mind, however, that the process can last up to five years. Additionally, failure to abide by the repayment plan can lead to dismissal or conversion of the case to Chapter 7.
The filing process for Chapter 13 includes the same steps as Chapter 7, but there are additional requirements. These focus on filing a repayment plan, making initial payments, gaining confirmation of the payment plan, and completing the payments, which discharges the remaining debt.
Our accomplished bankruptcy attorneys at Reed Law Firm, P.A., are proud to serve Columbia and the surrounding area, and we have the legal skill, experience, and drive to help you address your debt concerns head-on. Learn more about everything we can do to help by contacting us online or giving our firm a call at 803-726-4888 today.
]]>There is a better way, which is to consult with one of our experienced Columbia bankruptcy attorneys at Reed Law Firm, P.A., today.
Bankruptcy referral companies and companies that generate related leads for various lawyers are not legal firms. Many, however, choose names and advertise themselves in ways that indicate they are. For a small fee, virtually anyone can create an online presence that aligns with bankruptcy relief. In the process, they make those who interact with such sites believe they are dealing with professional legal counsel, even when they are not.
These companies go on to share sensitive financial information with attorneys and firms down the pipeline. In fact, these companies often target those experiencing dire financial circumstances via public records, such as the following:
There is a wide range of verified incidents in which referral companies and lead generators harm consumers. This includes delaying filings and generating fees in the process. The director of the DOJ’s Trustee Program reports that companies that misrepresent themselves in this fashion not only harm both debtors and creditors but also damage the integrity of the bankruptcy system itself.
Working with a company that focuses on bankruptcy referrals and generating leads comes with potential risks for you as a consumer. Consider the following:
Protecting your rights is key. Reach out to a trusted bankruptcy lawyer today.
Our dedicated bankruptcy attorneys at Reed Law Firm, P.A., proudly serving Columbia and the surrounding area, are committed to skillfully assessing your unique circumstances and to smoothly guiding you through the legal process that is right for you. You deserve more than what bankruptcy mills have to offer, and we are here to help. Learn more by contacting us online or giving our firm a call at 803-726-4888 today.
]]>The best way to protect your best interests is by consulting with an experienced Florence bankruptcy attorney at Reed Law Firm, P.A., from the start.
National bankruptcy companies are far more likely to be full-on scams or to offer less than adequate services than local providers. When it comes to resolving your financial concerns through bankruptcy, it is always in your best interest to work closely with a well-respected local bankruptcy lawyer.
Every outright bankruptcy scam out there puts its own spin on things, but they generally turn to the same basic tactics.
Many of the bankruptcy mills out there offer flat rates that sound too good to be true. If this is what you’re looking at, keep the adage of “you get what you pay for” in mind. An offer that strikes you as being very inexpensive is letting you know that the company’s services are not everything they should be. And it may signal a scam.
If the offer in question requires payment in an unusual form, such as any of the following, it’s almost certainly a scam:
These are even more concerning when the involved fees are upfront. If the payment method, payment requirements, or both strike you as odd, it’s time to walk away.
If you click on a national bankruptcy company, you should expect them to contact you. In fact, they may contact you over and over again, with the goal of convincing you that you need their services. If, however, you hear from a bankruptcy company that you didn’t contact first, the chance that it’s a scam increases.
Bankruptcy is a challenging legal process that takes a significant amount of time to successfully resolve. If the company contacting you promises speedy results, it’s a red flag. If they are not perpetrating a scam, they are, at the very least, sharing false information.
At Reed Law Firm, P.A., our compassionate Florence bankruptcy attorneys recognize the importance of resolving your bankruptcy case effectively and efficiently, and we will leave no stone unturned on your behalf. Ultimately, the national companies can’t provide you with the same level of financial protection, and we encourage you to reach out for more information by contacting us online or giving us a call at 843-679-0077 today.
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