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Evaluating personal goals before filing for Chapter 7 bankruptcy

Bankruptcy may be a difficult choice for South Carolina residents, but there are situations that can leave an individual or family with few alternatives. Filing for Chapter 7 may be a path to financial healing as unsecured debts, medical bills, and other financial difficulties are discharged. A fresh financial footing through bankruptcy does come with some long-term credit consequences, making it important to review both the positive side and the negative side of filing bankruptcy prior to making any decisions.

It is important to assess the full gamut of debts to be dealt with in a potential bankruptcy case. Some debts are not eligible for discharge, meaning that one's tax obligations, student loans, and child support payments will remain in effect. A creditor might be able to sell property belonging to the debtor to satisfy part of the debt. Any cosigners on loans involved in the proceedings could suffer consequences when a discharge occurs. Additionally, bankruptcy will remain on one's credit report for as long as 10 years.

Some of the benefits of filing for Chapter 7 include the ability to eliminate significant levels of debt, retaining one's own future income, and not having to deal with a long-term repayment plan. The official proceedings conclude after just a few months. However, it may be beneficial to consider bankruptcy alternatives before filing. For example, a debtor with few resources may be less likely to face any major action from a creditor. In some cases, negotiation with a creditor to reduce or restructure payments is possible.

An individual who is dealing with creditor harassment might feel pressured to file for Chapter 7 bankruptcy in order to put an end to frustrating collection practices. An attorney might be helpful for obtaining information about one's rights related to collection activities. Additionally, an attorney might review one's situation to evaluate whether Chapter 7 is a viable option.

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The Huggins Law Firm, PA

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Columbia, SC 29201

Phone: 803-764-1558
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