At Stone Law Firm, we understand that deciding to file for bankruptcy in South Carolina is a significant step. Recognizing when it’s time to consider Chapter 7 bankruptcy can be challenging. Here are nine signs that filing might be a wise choice for your financial future:
1. Overwhelming Credit Card Debt
If your credit card debt has grown to a point where you can’t foresee paying it off in the next few years, even with drastic budgeting, Chapter 7 bankruptcy could offer a path to eliminate credit card debt.
2. Medical Bills You Can’t Afford
Unexpected medical expenses can financially cripple many families. If you’re drowning in medical bills with no feasible way to pay them, Chapter 7 bankruptcy can provide relief to your medical debt.
3. Significant Lawsuit Judgments Against You
Facing a lawsuit judgment in SC that you’re unable to satisfy can lead to wage garnishments and asset seizure. Filing for Chapter 7 bankruptcy can halt these actions and possibly discharge the debt.
4. Threatened Repossession or Foreclosure
If you’re at risk of losing your home, car, or other assets, Chapter 7 might help delay or prevent repossession and foreclosure, giving you time to reorganize your finances.
5. Wage Garnishment
Wage garnishment not only reduces your take-home pay but also signals deep financial distress. Bankruptcy can stop most garnishments and free up your income for necessary expenses. While SC law prevents most types of consumer wage garnishments, there are still many types that still exists such as child support or IRS taxes.
6. Utility Disconnections
Struggling to pay utility bills in South Carolins to the point of facing disconnection is a clear sign of financial turmoil. Bankruptcy can potentially help you wipe out past-due balances and keep your utilities on. Please keep in mind that the utility may require a renter or homeowner to post a deposit for future service.
7. Using Loans to Pay Bills
Relying on payday loans or advances from one credit card to pay another is unsustainable. Bankruptcy can help break this cycle by addressing the debt causing this dependency.
8. No Savings for Emergencies
If you’re unable to save for future needs or emergencies because of your debts, it might be time to consider how bankruptcy could reset your financial situation. At the Stone Law Firm we recommend consumers watch Dave Ramsey videos to learn about emergency accounts and how to prepare for the unexpected. Doing this will help you avoid having debt problems in the future.
9. Emotional Stress from Debt
The stress and anxiety caused by unmanageable debt should not be underestimated. If your financial situation is affecting your mental health, seeking relief through bankruptcy could be a step towards regaining peace of mind. See my recent blog about debt stress and mental illness.
CHAPTER 7 BANKRUPTCY ATTORNEY NEAR ME
Recognizing any of these signs in your life might indicate that it’s time to explore Chapter 7 bankruptcy as a viable option for regaining control of your financial health. At Stone Law Firm, we’re committed to providing compassionate and knowledgeable guidance to help you navigate through these challenging decisions. With our expertise in bankruptcy law across South Carolina, we’re here to help you assess your situation and explore the best path forward. Contact us today in our offices in Irmo, Columbia, Florence, or Greenville. We also accept clients throughout the whole state from Aiken, Spartanburg, Sumter, Orangeburg, Rock Hill, Camden, Myrtle Beach and Charleston. Call now to schedule a consultation and take the first step towards financial recovery.