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April 2017 Archives

Debt collectors don't always play by the rules

South Carolina residents were some of the roughly 70 million Americans who were contacted by a creditor or debt collector within the past 12 months. That was according to a study released by the Consumer Financial Protection Bureau. Of those who were contacted, 40 percent asked that the creditor or debt collector cease contact. In 75 percent of those cases, that did not happen.

Credit card debt is on the rise

Many people in South Carolina rely on their credit cards for both everyday and major purchases. Consumers often use them as a way of conveniently making purchases online and in stores without having to bother with managing cash. While credit cards definitely have their advantages, they can lead to unmanageable debt for some people.

Bankruptcy and credit reporting requirements in South Carolina

If someone files for Chapter 13 bankruptcy, they may not be able to immediately see their payment plan show up on their credit report. A woman in California filed for bankruptcy and successfully submitted a repayment plan in April of 2015. Repayment plans, which are required for Chapter 13 filings, outline how the debtor will pay off certain creditors in a three- to five-year period. Debts that are remaining are normally discharged.

Chapter 13 bankruptcy and unemployment benefits

South Carolina residents who are considering filing for Chapter 13 bankruptcy might be interested to learn that in another state, a couple was not permitted to exclude unemployment payments from their current monthly and disposable income. With Chapter 13 bankruptcy, a debtor may keep some assets while paying them off under an approved payment plan. In New Mexico, a couple argued that the unemployment payments should be exempt because they are a benefit under the Social Security Act.

Saving for retirement during a Chapter 13 bankruptcy

When individuals or married couples file Chapter 13 bankruptcy petitions in South Carolina, they are expected to submit payment plans showing how much income they earn and the portion of this money that will be applied to their outstanding obligations. Checks and balances have been built into the system to make sure that creditors are not taken advantage of, and Chapter 13 payment plans must withstand the scrutiny of a bankruptcy judge. Judges can be difficult to please, and they sometimes raise objections even when all of the parties involved are in agreement.

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
Map & Directions

Charleston Office