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Understanding personal bankruptcy

Investors and homeowners in South Carolina may be interested in learning about how personal bankruptcy can be used as relief from distressed properties. Maintaining payments on multiple properties can be difficult after they have lost value and the market is bearish. Debtors often take on additional work in attempt to make good on outstanding payments, but many are still compelled to file personal bankruptcy. When there are minimal assets and substantial liabilities, filing for personal bankruptcy may be advantageous.

The two primary forms of bankruptcy that are available to consumers are Chapter 7 and Chapter 13. Each has its own eligibility and other requirements.

Under Chapter 7, a debtor's non-exempt assets are liquidated, with the proceeds used to pay off creditors. Most remaining unsecured debt is discharged at the end of the process. Debtors have to pass a means test in order to qualify, and there are other requirements. Chapter 13 is designed for debtors who have a regular and steady source of income. It involves a payment plan that lasts from three to five years and which has to be approved by the court. Homeowners who qualify are often able to catch up on their mortgage delinquencies and keep their homes.

Debtors who need more information about filing for personal bankruptcy may want to speak with an attorney who has experience with these matters. In a discussion of available debt relief alternatives, the attorney can point out that filing for bankruptcy is often a way to achieve a fresh financial start. In addition, legal counsel could mention that filing also can bring at least a temporary halt to collection activities.

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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
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
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Charleston Office