The government, at both the state and federal levels, recognizes that individuals and families can become overwhelmed by debt – often through no fault of their own – and it can leave them with few options. Bankruptcy is the government’s tool for helping you conquer or manage the overwhelming debt you may be facing, and an experienced bankruptcy attorney in Florence, South Carolina, can help.
Chapter 7 Bankruptcy
One of the primary forms of bankruptcy for individuals and couples is Chapter 7. To file for Chapter 7 bankruptcy, you will need to earn less than the current cap set by the government. Additionally, you can’t own assets that exceed a reasonable amount, which includes up to a specific amount of equity in your home and in your vehicle.
Chapter 7 bankruptcy is a liquidation bankruptcy, which means any assets you own beyond the set limits will need to be liquidated in order to cover unsecured debts like the following:
- Medical bills
- Credit card balances
- Unsecured personal loans
- Payday-type loans
Any remaining unsecured debt, however, will be wiped clean by the Chapter 7 bankruptcy – leaving you with a fresh financial start.
Chapter 7 is generally reserved for those with lower incomes and fewer assets. Every bankruptcy case, however, is unique to the person and the circumstances involved, and your practiced bankruptcy attorney will help you determine the best financial path forward for you.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy amounts to a financial restructuring that allows you to set up a newly created payment plan, and it’s called a wage earner plan because it’s designed to repay your creditors over the course of three to five years. This repayment, however, is often made only in part – rather than in full. Chapter 13 bankruptcy involves filing a petition for relief from the crushing debt you are experiencing, and it can help ensure a more secure financial future.
Chapter 13 can afford you the cushion of time you need to catch up with your bills and get back on track. This can include your mortgage and your car payment. While you’ll need to address any back payments you have missed on your car or home, a skilled bankruptcy attorney can help you negotiate a repayment plan that restructures your payments and potentially modifies your mortgage or car loan.
Both Chapter 7 and Chapter 13 bankruptcy initiate an automatic stay that protects you from your creditors’ collection efforts for a period of time that can help you establish greater financial stability.
Make the Call to an Experienced Florence, South Carolina, Bankruptcy Attorney Today
The accomplished Florence, South Carolina bankruptcy attorneys at Reed Law Firm have an impressive track record of successfully guiding cases like yours toward favorable resolutions that afford our valued clients greater financial freedom. Your case and your financial future are important, so please don’t put off reaching out and contacting us online or calling 843-920-2094 for more information about what we can do for you today.
