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When bankruptcy may be the solution

South Carolina consumers who are facing financial challenges may have wondered if bankruptcy may be the solution to their situation. While bankruptcy affects an individual's credit score, often for several years, under certain circumstances, it may be the solution that works best to provide financial relief and put individuals on the road to financial security.

Because bankruptcy can have such a detrimental effect on a person's credit report, possibly dropping the credit score by 100 points or more, people should make every effort to work with creditors to find another solution, saving bankruptcy as a last resort. Many creditors will work with those facing financial challenges, sometimes even reducing the amount owed. However, if creditors are unwilling to do so, bankruptcy can provide protection from collection practices and a bankruptcy trustee may be more successful with negotiations.

Bankruptcy may also be a solution when an individual's assets equal far less than his or her liabilities. When a person's income simply cannot meet even minimum financial obligations, bankruptcy may be the only way to resolve the situation. Additionally, when a person faces unexpected life changes that adversely affect the financial situation, such as the loss of a job or a serious accident or illness, bankruptcy may be the only way to address the loss of income or growing debt.

If an individual has experienced a devastating life event or is caught in a cycle of credit card debt and can see no way out, an experienced lawyer may be able to help decide if bankruptcy is the right solution for a particular situation. A bankruptcy lawyer can also describe the eligibility requirements for Chapter 7 and Chapter 13 during a discussion of debt relief alternatives.

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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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