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July 2017 Archives

The safety of investments when declaring bankruptcy

When South Carolina consumers file for personal bankruptcy, the two principal forms are Chapter 7 and Chapter 13. With Chapter 7, a person's non-exempt assets may be liquidated with the proceeds going towards creditors. Chapter 13 allows a restructuring in which a person repays creditors over a period of three or five years. Traditional and Roth IRAs are generally safe from creditors although there is a cap on the amount while the IRS may levy future disbursements from 401(k)s. A person might also want to look into using 401(k) funds to pay the IRS. Self-employed plans are also safe and do not have a cap. However, if a person is getting distributions, this protection on various retirement plans changes.

Creditors bemoan new rule for class-action lawsuits

A rule change could soon provide some relief to South Carolina consumers facing financial challenges due to credit card debt. Many credit companies issue clauses that force people into one-on-one arbitration instead of being able to join their cases with others in class-action lawsuits. These arbitration clauses that keep consumers from seeking court protection are about to undergo a significant change with a new rule from the Consumer Financial Protection Bureau.

Medical debt weighs on the wallets of many Americans

Many South Carolina residents are struggling with serious medical debt after major health care expenses were not covered by insurance or due to being uninsured. A startup is pledging to dedicate its proceeds toward helping people this situation.

Secured creditors must timely file claims

A Chapter 13 bankruptcy case in South Carolina will give creditors an opportunity to make a claim with the court so that they have a chance to receive payments once a court approves a bankruptcy plan. Late filers, however, could miss their chance to collect payments. A court in another state ruled in June against a creditor holding a tax lien against a couple's house because of a late claim filing.

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