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Debt relief advice for South Carolina residents

For those who are dealing with a high level of debt, bankruptcy may be a great way to seek financial stability. However, it is not the only solution to solving a debt problem. There are many companies that claim to be able to eliminate debt or offer immediate debt reduction. While many debt relief companies offer a legitimate service, others are may be fronts for debt relief scams.

In some cases, debt relief programs may involve bad advice that can make a consumer's financial situation worse. This is because some debt relief providers insist that debtors stop paying their bills or stop making contact with their creditors. Failing to make payments could result in a drop in the consumer's credit score.

Working with a debt relief company may not solve all of a debtor's money issues. Not all creditors will be willing to make a deal to reduce the debt owed or be agreeable to a new payment plan. However, this may not stop shady debt relief services from requiring money to be deposited into an account every month, which may exasperate an individual's financial woes.

Personal bankruptcy may be an effective method of handling excess debt. Chapter 7 bankruptcy may allow an individual to discharge certain debts and could protect the filer from creditor harassment. When considering whether bankruptcy is the best decision for a given individual, it may be worthwhile to talk to an attorney. An attorney can further explain the bankruptcy process and how it may be beneficial. In addition to discharging debt, a debtor may get an automatic stay, which will block any current action that a creditor is taking, such as foreclosure.

Source: FTC, "Debt Relief or Bankruptcy?", December 04, 2014

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
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925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
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