Increasingly, in South Carolina and across the U.S., people who borrowed money to pay for school are struggling to pay it back. For individuals who relied on private loans, which are typically more expensive than other borrowing options, there may be ways to secure temporary or permanent relief. Contacting an attorney may be an important step toward reducing or eliminating debt payments.
South Carolina consumers who are considering bankruptcy might be concerned about how they will rebuild their credit. Depending on whether a person has filed for Chapter 13 or Chapter 7 bankruptcy, the bankruptcy will remain on credit reports for seven or 10 years, but this does not mean that their credit is ruined. There are several steps people can take to improve their credit.
South Carolina residents who have decided to file for bankruptcy must complete a means test. It consists of two parts that are used to determine whether debtors can file for Chapter 7 bankruptcy or if they are restricted to Chapter 13 bankruptcy. While Chapter 7 bankruptcy can provide debt forgiveness for people with little income, Chapter 13 bankruptcy requires people to use their disposable income to pay off at least part of their debt.
South Carolina residents who are planning to file for bankruptcy may wonder how purchasing a car could affect their petition. Though taking on new debt before a bankruptcy filing is usually not advisable, financing a car can actually benefit some situations. However, it is important to make sure that a car purchase is made 'in good faith" so that it does not send up any red flags.
South Carolina residents who are seeking relief from creditor collection efforts may wish to file for bankruptcy. When they do so, they are in general granted an automatic stay of any collections lawsuits by any creditor, government agency or other person or entity. It can also provide other benefits such as keeping the lights or heat on in a home if people are behind on utility payments.
Filing for bankruptcy is sometimes the best solution for a South Carolina resident who is experiencing a financial crisis. If a person loses their job and cannot keep up with their mortgage or car payments, filing for bankruptcy can protect vital assets from seizure by creditors. The downside of filing for bankruptcy is that it can have a negative impact on a person's credit score for several years.
A lot of South Carolina residents have overwhelming credit card debt. In an effort to pay their balances down, some people enroll in debt management plans offered by credit counselors. Such a plan can allow people to consolidate all of their debts into one monthly bill with a lower interest rate.
When South Carolina homeowners find themselves having financial problems, the possibility of foreclosure may become a significant concern. While some people are able to make their mortgage payments while trying to manage their debt, others cannot. This puts these consumers at risk of losing their home and having to find a new place to live.
South Carolina residents who are struggling to cope financially sometimes see bankruptcy as an option of last resort, but pursuing alternative forms of debt relief may sometimes make their situations worse rather than better. Debt settlement companies often market themselves aggressively, but their commercials rarely reveal how their services actually work.
Filing for bankruptcy might be an option for South Carolina residents who are overwhelmed by financial obligations, but many ideas that people have about the procedure may make it an unappealing prospect. There are many misconceptions about bankruptcy and its effects, and understanding the truth of how it works and the effect it can have could help someone who is making a decision on how to deal with consumer debt.