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Chapter 7 bankruptcy as a first option for South Carolinians

South Carolina residents facing significant debt may benefit from seeking options outside the conventional advice of paying down debt. While there are many seemingly simple ways to systematically pay off debt, filing for bankruptcy is often the most cost-effective option. Repaying debt without filing bankruptcy can result in unexpected costs that may even eat into retirement savings.

Credit debt consolidation is one of the most popular options recommended to those looking to pay down an overwhelming amount of debt. However, even with a new, more affordable monthly payment, consumers may benefit more from paying into a retirement fund with a solid return rate. Settling for a lower amount than the original debt was worth is another popular option that may cause debtors to miss better returns by paying into a retirement account. The amount of time it takes to pay down debt while accumulating interest could be more cost prohibitive than bankruptcy.

Consumers are advised to consider not only the amount of repayment, but the amount of interest they could have earned if those credit card payments had been made towards a retirement account instead. In light of such considerations, a Chapter 7 bankruptcy may be the more cost-effective solution. Chapter 7 bankruptcies can take as little as 90 days and generally costs an average of three months worth of payments on $22,000 worth of credit card debt. By filing bankruptcy and discharging current debt, consumers can avoid trading future financial performance for current debt.

While bankruptcy is often considered a last resort, a Chapter 7 bankruptcy may actually be a more prudent financial strategy than trying to repay consumer debt. A bankruptcy lawyer may be able to help with the filing process as well as stopping creditor harassment. Bankruptcy is one option for resolving overwhelming debt and providing a fresh financial start for the future.

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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
Fax: 866-481-2325
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