Article written by Columbia, SC bankruptcy attorney Daniel Stone
I often have Chapter 13 clients that are forced to pay a significant percentage to their unsecured creditors or a full 100% plan. Of course these clients want to know is there any other forms of relief available. While they want to pay their creditors back, paying the unsecured creditors back 100% in a Chapter 13 bankruptcy when they have already be paid back thousands of dollars of lucrative interest and penalty fees is hard to swallow. Thankfully, in some cases there are some additional forms of relief.
Lets examine some. First, even if all else fails, the Chapter 13 bankruptcy will allow you to stop the harrassment and the interest rates/penalties from accruing. Second, for whatever reason, some unsecured creditors fail to file timely claims. This means that you may be able to either reduce your overall plan payment or it may end sooner than 60 months. Finally, carefully examine your payment history on all your unsecured debts to include credit cards and medical debt. In South Carolina there is a three year statute of limitations on creditors seeking enforecement on their debts. This means that if you haven’t paid on a debt in three years, you may be able to dispute this debt in bankruptcy court to reduce your payment. Please note there are exceptions to this principle and you may want to talk to me or another Chapter 13 bankruptcy attorney about this issue.