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May 2016 Archives

Bankruptcy court rules on Chapter 7 trustee compensation

South Carolina residents who are considering a Chapter 7 personal bankruptcy may be aware that trustees are appointed to ensure that the laws and procdures are followed, but they may not know that the compensation of these trustees is strictly regulated and commission based. The creditors of an Illinois construction company that filed a Chapter 7 petition sought legal remedies when the trustee involved claimed the maximum commission allowed by law, but a May 17 U.S. Bankruptcy Court decision clarified the rules and dismissed the creditors' objections.

Late payments in Chapter 13 situations

Although a bankruptcy is often pursued to reduce financial stress, some South Carolina residents may find that there can be further issues once their Chapter 13 bankruptcies are confirmed. While Chapter 7 allows for much unsecured debt to be discharged, a Chapter 13 case typically involves reorganizing such debts so that payments are more manageable. A trustee typically makes payments to the creditors in a case from the monthly plan payment madeby the debtor. It is possible for an individual to find that they cannot make their monthly payment on time.

Supreme Court rules in bankruptcy, fraud case

South Carolina residents interested in bankruptcy matters might like to know about the Supreme Court ruling on May 16 where the judges ruled 7-1 that fraudulent conveyance schemes constitute a fraud exception from bankruptcy discharge even if there is no false representation. They also decided that the term "actual fraud" from the federal bankruptcy code did apply in this circumstance.

Looking out for loan scams

Recent South Carolina college graduates who are struggling with student loans may be eager to accept debt relief from wherever it may come from. However, many companies may only be looking out for their own best interests. For instance, they may offer to file loan consolidation paperwork for hundreds of dollars even though debtors can do that on their own for free.

Speeding up credit card payoff

Many people in South Carolina struggle with credit card debt. These are often responsible consumers who have had bad luck and are unable to keep up with their payments. Unfortunately, missing credit card payments often makes it very difficult to get caught up, as card companies add interest and fees to the original principal and this compounds over time.

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