In a case that will impact bankruptcy proceedings in South Carolina and nationwide, the U.S. Supreme Court has ruled that Chapter 13 bankruptcy trustees must return all undistributed funds to debtors who convert their cases to Chapter 7. The unanimous decision, which came down on May 18, resolves a question that has divided bankruptcy courts for three decades.
U.S. Supreme Court says leftover Chapter 13 funds go to debtor
Defaulted medical debt relief for South Carolina patients
The three major credit reporting bureaus came to an agreement to extend the amount of time it takes for unpaid medical bills to show upon on consumer credit reports. It is easy to accrue tens of thousands of dollars in hospital expenses during a single major illness. Even insured South Carolina patients may be overwhelmed by the amount of benefits explanations from their healthcare providers.
Chapter 7 bankruptcy as a first option for South Carolinians
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.
Refinancing offers debt management options
Before they apply for personal loans to refinance their credit card debt, people in South Carolina should take stock of their situations and be aware of the pros and cons of this option. While these loans may help them to pay off debt incurred because of emergencies, medical bills or college expenses, refinance loans work better for some people than they do for others. For example, individuals who are likely to pay off their loans within the next year might choose to avoid refinancing. To get this type of loan, they would need to pay origination fees of anywhere between 1 and 5 percent, which could mean that they end up paying more than they owed originally.
South Carolina bankruptcy and debt ineligible for discharge
South Carolinians who are filing for a Chapter 13 bankruptcy may not be aware that some debts are not eligible for discharge during the bankruptcy process. Generally, child support, student loans, legal fines and other long-term debt such as mortgages are not eliminated during bankruptcy. This means that collections on these types of debt may be continued, particularly in the case of child support.
