Debt is a reality of life for most American families, with the consumer debt often approaching the $1 trillion mark annually. Here in South Carolina, families struggling under insurmountable debt may not be aware of the options available to them to help mitigate or otherwise assuage the stress of that debt. Both Chapter 7 and Chapter 13 bankruptcy filings are viable options for many residents, but it is important to understand the difference between them before making a final decision.
In a cultural sense, bankruptcy is often perceived as a financial tool used by businesses when they are struggling under the weight of debt. However, as some South Carolina residents are already aware, Chapter 7 bankruptcy is also a tool that can be used by individuals or families for whom debt has become an insurmountable issue. This is particularly true for older people, who may be laboring under debt that is years or decades old. Thankfully, Chapter 7 remains a helpful financial strategy in combating financial obligations that have become unmanageable.
For many Americans, debt is a stressful part of everyday life. Here in South Carolina and elsewhere in the nation, debt levels are on the rise, particularly when it comes to unsecured debts like credit card debt and medical debt. For some people, consolidation might be enough to handle debt, and for others, a Chapter 7 bankruptcy filing may be the more fiscally responsible bet.
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.
Many South Carolina residents are nearing age 65 or have already celebrated that age-of-retirement birthday. While many older people have a lot in common, such as being grandparents or having certain health issues, there appears to be another area where many elders are experiencing similar situations. It has to do with finances and Chapter 7 bankruptcy.
There is a considerable amount of misinformation commonly attributed to bankruptcy. When an individual in South Carolina files for Chapter 7 bankruptcy, it can be unclear what financial allowances they are afforded during the process. While it may be possible to make larger purchases like a new vehicle during the filing, it may not be in the best interest of the individual to do so.
More and more Americans over the age of 65 are facing financial strife that is leading them into late-life debt, according to studies. The paper, "Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society" contends that increased costs for health care, as well as the reduced income that comes with retirement, are weighing heavily on the over-65 demographic here in South Carolina and elsewhere. As a result, older people are becoming increasingly likely to choose Chapter 7 bankruptcy as a viable way to eliminate this debt in their golden years.
Borrowing money is integral to the American way of life. From buying homes to purchasing motor vehicles to acquiring goods and services with a credit card, many daily purchases in South Carolina are based on borrowed money. However, most people think of borrowing money in specialized manners, such as a mortgage or an auto loan. Increasingly popular is the personal loan, an old practice that is now adding to the average consumer's debt.
Things will turn around soon; one more bonus and the bills will be caught up. A better job is just around the corner. One or more of these statements will run through the South Carolina debtor's head as he or she considers what should be done to relieve the financial pressure. Rather than continue to worry and wonder how to pay off the debt, it may be time to take action and file for bankruptcy.
Home ownership is often asserted to be the "American dream." Many South Carolina residents look forward to purchasing their dream home; however, when financial struggles become reality, they worry that they will never be able to qualify for a mortgage. This simply is not true. In fact, many who file bankruptcy find that they are able to obtain a new mortgage within a few short years.