Entering our second decade of filing Chapter 7 and Chapter 13 bankruptcies, we continue to help clients get a fresh start, free from crushing medical bills and credit card debt. Misconceptions still exist based on new laws passed several years ago. You may think that bankruptcy is no longer an option. Not true. Our job is to give you hope and prepare you for a future free of money problems.
Credit cards make it easy to acquire both wanted and needed items. While it may still be a few days until payday, the South Carolina resident can simply stop by the grocery store and stock up by charging items on the credit card. Additionally, rather than waiting until funds are available, one can go ahead and purchase a new outfit or other desired item. These may seem like small things, but over time, the South Carolina consumer can find him or herself with more debt than can easily be handled.
In some cases, individuals find themselves in credit card debt due to overspending and not paying attention to the family budget. In other cases, the individual's financial picture suddenly changes due to the loss of a job or divorce. Others find it necessary to use credit cards to pay for medical expenses. Regardless of the reason behind the credit card debt, the outcome is still the same.
One of the first signs of trouble is when the individual is able to make only the minimum monthly payments on the accounts. When this is no longer possible, the individual is faced with collection calls and the inability to get out from under this debt. At this point, credit cards have become more of a burden than a convenience. In fact, credit card debt in the United States has reached its highest level in over 10 years. The typical family now carries a credit card balance exceeding $8,000.
Many South Carolina families have discovered that credit card debt can have a negative impact on the family. At the point when this debt becomes too much to handle, it is time to take action. Experienced legal counsel can assist in determining which options are appropriate in a given situation.
South Carolina readers know their finances can have an impact on various areas of life, including their relationships. Money and financial hardship can cause a significant strain on your relationship with your partner or your significant other, eventually causing a permanent and irreparable rift between the two of you.
Studies show that debt is a financial issue that can have a considerable impact on a person's love life. In fact, a recent survey finds that three in four people believe that credit card debt is a reason to avoid or leave a relationship with a person. If you are dealing with a substantial amount of debt and are unable to manage it on your own, you may find it beneficial to consider the legal ways to confront this situation and preserve your personal relationships.
The long-reaching effect of owing too much money
Credit card debt is often difficult to overcome. With accumulating interest rates and minimum payments, these balances can quickly spiral out of control. An accident, job loss or prolonged sickness can suddenly leave you unable to make the minimum payment. While many Americans have at least a small amount of credit card debt, there is a point when the balance can actually make a person unattractive as a potential partner.
If you have a large amount of debt and have concerns regarding how this could impact your personal life, consider the following facts:
On average, people consider credit card debt balances of over $11,000 to be unacceptable and unattractive.
Almost half of people with credit cards carry a balance from month to month, and the average person has about $6,000 in outstanding credit card balances.
Studies find that credit card debt is one of the most undesirable types of debt in the eyes of prospective partners, along with payday loans and student debt.
There are various options for dealing with credit card debt. For some, it is possible to confront this debt through consolidating, budgeting or strict payment plans. However, these efforts may not be enough for you. When there is no way out, you may consider the benefits of filing for bankruptcy.
Why should you consider bankruptcy?
Either Chapter 7 or Chapter 13 bankruptcy offers you a way to effectively deal with your debt once and for all. This can allow you to confront your credit card debt while protected from the efforts of debt collectors and creditors. If your debt is taking a toll on your personal life and relationships, it may be time to think about the benefits of seeking protection and help through bankruptcy.
Many people think that money makes the world go round, and unfortunately, they are often not wrong. In order to carry out tasks, meet basic needs and attend to many of life's obligations, money is needed. However, financial stability can be difficult to come by, and individuals who are struggling may not know where to turn. Fortunately, there are debt relief options like bankruptcy that may be able to help.
South Carolina readers may believe that celebrities have a lock on financial stability, but that is often not the case. In fact, it was recently reported that actor Joey Lawrence filed for bankruptcy last year. Apparently, Lawrence and his wife had amassed over $400,000 in debt due to back taxes, car loans, unpaid rent, credit card balances and other liabilities.
Part of their financial struggles came about due to Lawrence's substantial decrease in income from 2015 to 2016. In 2015, the actor brought in over $530,000 due to his appearances on a sitcom. However, the show also ended that year, and as a result, his income the following year totaled only $58,000. With monthly expenses going over $25,500, it is unsurprising that their financial situation quickly declined.
As this example shows, a sudden decrease in income can easily lead to money issues. If South Carolina residents have faced such a problem or had to deal with other unexpected financial changes, they may be struggling with a sudden influx of debt. If they feel that it is too overwhelming to handle on their own, they may wish to look into bankruptcy as a potential debt relief option.
The bills are piling up, and the phone keeps ringing. The stress and anguish caused by not being able to stop the never-ending cycle of debt can take a toll on the typical South Carolina resident. For many, the answer to this apparent dilemma is found in filing for Chapter 7 bankruptcy.
Chapter 7 bankruptcy can offer the individual the opportunity for a fresh start. With this kind of bankruptcy, most types of debts can be discharged. Rather than spending years attempting to just pay the interest on mounting debt, the South Carolina resident is given a clean slate and able to start over again.
While it is possible that the individual may lose some assets, these are generally ones that are considered to be luxuries. Typically, the filer is able to retain the majority of possessions, including a car and home. Of course, if these items are financed, the loans on these items will need to be reaffirmed and payments will still need to be made.
It is true that a Chapter 7 bankruptcy will remain on one's credit report for a period of 10 years. However, for the individual who finds that filing is necessary, his or her credit report most likely already showed signs of financial struggle. By filing for bankruptcy, it is possible to begin the rebuilding process and show positive financial attributes that will assist in re-establishing a favorable credit history. Experienced legal counsel can assist in determining if bankruptcy is the best option and, if so, guide the South Carolina resident through the process.
The country is experiencing decreases in unemployment and increases in household income, both positive signs for consumers in South Carolina and elsewhere. However, many families are still struggling financially, particularly when it comes to credit card debt. Consumers in the nation have over $900 billion in credit card balances, which roughly equates to $7,300 per household. While this amount is increasing, a growing of people have adequate savings to pay off their credit cards if necessary.
According to an online personal finance website, almost 60 percent of families have sufficient funds to eliminate their debt. However, 21 percent of the people surveyed indicated that they did not have enough money to pay those balances. Furthermore, 12 percent responded that they had no savings at all. This indicates that many households are experiencing financial uncertainty.
The number of Americans who have adequate savings is actually at a eight-year high. Many people surveyed stated that are placing greater emphasis on establishing an emergency savings account. Also, there is a greater motivation among some responders to pay off debt.
The survey revealed some demographic differences. Baby boomers and members of Generation X were the groups most likely to have neither credit card debt or emergency savings. Those over age 73 tended to have more emergency savings than credit card debt, followed closely by millennials. All age groups indicated that they needed to focus more on saving more.
Positive trends in the nation's economy are good news for many South Carolina residents. However, there are families that are still dealing with significant credit card debt. Anyone wishing to reduce or eliminate this debt should contact a respected bankruptcy attorney for assistance. An experience lawyer can help clients understand their options and develop a plan best suited to get their finances under control.
In South Carolina, when one files a personal bankruptcy, one of the benefits available is that a secured loan transaction can be erased simply by returning the collateral that stands as security for the loan. Thus, surrendering a car will put to rest the creditor's claims. There may be a deficiency amount that the creditor will claim, but in a Chapter 7 straight bankruptcy, the bankruptcy attorney will see to it that any deficiency will be discharged as an unsecured debt.
In a Chapter 13, which is a payment plan, the surrender of collateral will generally end the creditor's claim. However, in the case of a deficiency still due, it may be filed as an unsecured claim in the Chapter 13. Unsecured claims will generally get paid some very small percentage of the debt that is claimed. The difference, therefore, where the collateral is surrendered, is of little significance between a Chapter 7 or a Chapter 13 under the foregoing examples.
However, the creditor on a secured item may be paid where the filer decides to keep the collateral. If it is a house or a car, the regular payments must continue to be made during the Chapter 13. If the regular payments are not made, the creditor can get permission from the automatic stay and repossess the car or foreclose on the house. When a house, car or other collateral is worth more than the balance of the loan, that situation can become problematic if the exemptions provided in the state of filing do not cover the amount of the equity owned.
If there is too much equity, that amount must be paid in the Chapter 13 plan as monthly payments over the extent of the plan. Generally, that doesn't happen often because, in South Carolina and elsewhere, the bankruptcy attorney will have discussed the issue with the filing debtors, and they will have agreed on an appropriate way to handle the issue. If you have an equity issue, there are several ways to successfully confront it, and the strategy must be discussed and decided with your attorney's guidance.
Most Americans use credit cards, and many credit card holders have debt they carry over from month to month. While many people are able to effectively manage these balances, there are times this type of debt becomes unmanageable, leaving a South Carolina consumer struggling with minimum payments, accumulating interest and receiving calls from creditors.
The stress of credit card debt can be significant. In fact, there is evidence to suggest that this debt can actually lead to health problems and other issues. The amount that Americans owe on credit cards is the highest it has even been, amounting to approximately $1 trillion. Of the people who have credit card debt, the majority say that they regret it, expressing regret over how their spending led to stress.
Your spending and your health
Currently, about half of the people who use credit cards carry a balance from one month to the next. Having a revolving and growing credit card balance is more than just a financial inconvenience. It can have an effect on other areas of your life as well, including your health. Consider what other people said about their debt, their happiness and their physical well-being:
Two of five people with credit card debt admitted their debt affected their happiness.
One-third of people with credit card debt said it took a toll on their standard of living.
Approximately one in five people with credit card debt stated their debt had a negative impact on their health.
For many people, credit card debt is about more than just money. It is a source of stress that does not go away. If this debt ends up in collections and creditors begin calling, it can only add to the stress and health problems that a person is experiencing as a result of too much credit card debt.
A reasonable solution for your debt
Many people feel overwhelmed by their personal debt, and you may assume that there is no way out for you. In reality, filing for bankruptcy could provide you with a reasonable and organized way you can confront your debt once and for fall.
If you find yourself overwhelmed by credit card debt and unsure of your options, you may find it beneficial to learn more about the benefits of bankruptcy. This legal process can help you find a better financial future and rid yourself of the debt that is taking a toll on your health.
Credit card debt can put a damper on anyone's finances. For many people, credit cards are sometimes utilized to purchase necessary items before payday. With continued use, however, consumers may overuse their cards while incurring high interest rates that their credit card companies charge. For many, paying off this debt is a top priority; therefore, South Carolina residents are advised to understand their options when settling credit card debt.
The average credit card debt in U.S. households continues to rise at a steady pace. For many consumers, settling the debt may be the only option, especially when minimum monthly payments become overwhelming. When settling a credit card debt, the consumer and the creditor negotiate the bill balance, ultimately allowing the consumer to pay less than what is owed.
Most credit card companies are willing to settle a debt with the consumer before entering the courtroom. However, some instances require legal action, especially when large amounts are at stake. Obtaining a legal professional who is experienced in debt related cases can help one obtain a fair the debt settlement, and an attorney can also advise a consumer on areas such as burden of proof, an official settlement offer and the settlement documentation.
Overwhelming credit card debt can be frightening for anyone. Understanding the state's statute on credit card debt can help consumers begin a credit card settlement. Negotiating the terms, interest rates, payments or the amount owed on credit card can be challenging, but with the help of an experienced legal counsel, South Carolina residents can begin to reclaim their financial independence.
One of the most coveted goals for South Carolina residents is owning a home. This American dream comes with a lot of rewards but also many responsibilities. As the excitement of being a homeowner wears off, the true cost of owning a home can sometimes come as a shock. South Carolina residents are advised to understand the risk associated with home ownership and what to do should their home become subject to foreclosure.
There are many reasons why some homeowners fall behind on their mortgage loan payments. Some of those may include buying a home that was more than they could afford, a second mortgage or an unexpected life event. Whatever the reason may be, the foreclosure process can be extremely lengthy; therefore, it is important for homeowners to understand the process.
Before the foreclosure process begins, a homeowner is usually provided with a grace period after receiving a default notice in order to get current on the loan. During this time period, a borrower can either apply for a loan modification, sell the property to a third party or pre-foreclosure auction, or reinstate the loan by paying any overdue balances. While the thought of losing a home can feel overwhelming, homeowners are encouraged to be proactive during the early stages of foreclosure.
Owning a home is one of the largest investments a person can make but also comes with an intense amount of stress. Should a foreclosure be imminent, homeowners are advised to understand all their legal rights. With the help of an experienced legal counsel, South Carolina residents can not only navigate the process properly, but they may also be able to avoid a foreclosure all together.
If you stepped into 2018 with serious financial problems, you are definitely not alone. In South Carolina and throughout the nation, many people are currently trying to overcome serious financial obstacles. For some, unexpected job loss or medical crisis quickly turned financial stability to chaos. On the other hand, you might simply be one of many whose spending got out of hand and credit card bills began piling up until your debt outweighed your financial resources. The good news is that most financial problems are temporary.
Much depends on the details of your situation as well as what type of options you access to help you get things back on track. The latter may prove challenging, especially if you haven't a clue as to what types of debt relief options are available in your situation. You'll be glad to know there is guidance support available in your area. Many people use Chapter 7 or Chapter 13 bankruptcies to resolve their financial problems. The question is, how can you determine which option would help you most?
Differences between Chapter 7 and Chapter 13
Before you can make an informed decision as to which type of debt relief option is most viable in your particular situation, you'll want to familiarize yourself with both kinds of debt resolution. The following information explains the main differences between the two and why you might choose one over the other:
Chapter 7 bankruptcy typically includes a complete liquidation of assets.
Both types of bankruptcy list eligibility requirements that you must satisfy before you can apply.
Certain debts are not dischargeable under Chapter 7; however, such debts may, in fact, be dischargeable under Chapter 13. These types of debts might include court fees, settlement agreements in finalized civil litigation situations (such as your order to pay compensation for damages in a personal injury claim) and certain types of tax debt.
Chapter 13 protects codebtors from liability if lenders receive payments in a restructured plan.
If a restructured plan would still leave you unable to pay off your debts, then Chapter 7 may be the better option for you.
Basically, Chapter 7 completely liquidates your assets and satisfies your debt by converting asset value to payments to pay creditors. On the other hand, Chapter 13 allows you to retain ownership of your assets and create a restructured payment plan to pay off your debts. With the latter option, you must show proof of current, steady income.
Tap into support resources
There's no need to go it alone when you're trying to figure out whether Chapter 7 or Chapter 13 bankruptcy might help you put your financial feet back on solid ground. It's a lot easier to rely on others who have experience with both types of bankruptcy to help you determine the best plan of action.
Many South Carolina residents seek debt relief support by asking experienced bankruptcy attorneys to review their cases.
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