South Carolina residents facing significant debt may benefit from seeking options outside the conventional advice of paying down debt. While there are many seemingly simple ways to systematically pay off debt, filing for bankruptcy is often the most cost-effective option. Repaying debt without filing bankruptcy can result in unexpected costs that may even eat into retirement savings.
South Carolina business owners may run into a period of financial difficulty that results in filing for Chapter 7 bankruptcy. While all business owners have the right to debt relief through bankruptcy, the business itself may or may not be allowed to continue operating. If the company is a sole proprietorship, it will continue to operate, as the company and its owner are one entity.
An individual who may be overwhelmed because of debt might seek a fresh start through bankruptcy. Chapter 7 may be appropriate if there are not secured assets to protect as this form of bankruptcy is a liquidation. Prior to filing under Chapter 7, however, an individual must participate in mandated credit counseling, proof of which will be submitted along with the bankruptcy petition. Additionally, a means test is completed to ensure that this form of bankruptcy is permissible based on an individual's income and obligations.