People in South Carolina who file for Chapter 11 bankruptcy and then convert it to Chapter 7 may face having to turn earnings over to the trustee based on a March 2016 ruling in a district court. The district court, which is located in Illinois, heard the case of a man who was unable to reorganize his debts and thus converted from a Chapter 11 to a Chapter 7. One of his creditors and the Chapter 7 trustee said the man had to turn his earnings from his debtor in possession account over to the trustee.
Issue converting to a Chapter 7 bankruptcy
How medical debt impacts finances
Having health insurance can help defray the cost of care, but it is not a guarantee that a South Carolina resident won't experience financial hardship. One poll of residents of another southern state found that 76 percent of those who drew down their savings or racked up credit card debt in the prior two years had health insurance. According to a national poll, 26 percent of respondents said that a medical debt caused a serious financial problem.
Tips for paying off credit card debt
People in South Carolina who have credit card obligations and who receive a tax refund should consider using the refund to pay down that debt. While it may be tempting to spend the money on something more fun, it is worth keeping in mind that paying off a card with a $3,000 balance at 19 percent interest saves over $500 in the year ahead.
Learning more about debt settlement
The process of debt settlement entails a debtor asking a creditor or creditors to take less than what they owe. While this may be advantageous for some South Carolina consumers, there are several variables that come into play before such a request may be seriously considered. First, a debtor must have one or more late or missed payments or an account has just gone into collections.
Credit card debt steadily rising
According to data from ValuePenguin, as of November 2015, total consumer debt in the United States stood at $3.4 trillion, and outstanding revolving debt stood at $929 billion. The latter figure represents a nerly $90 billion increase since 2010. The steady increase in the amount of debt held by consumers in South Carolina and around the country is due to a number of factors, including easy credit and incentives to get credit cards.
