For South Carolina homeowners, not being able to make mortgage payments is often a frightening experience. It is one thing to have to go to court over an unpaid credit card bill, but the possibility of losing one's home can cause significant anxiety.
When South Carolina residents file for bankruptcy, their credit score is negatively affected. How much of a hit is taken depends upon certain factors.
South Carolina residents may have been part of bankruptcy filings that soared in 2009 as individuals and businesses around the country began to feel the full impact of the financial crisis. Filings have been going down in recent years, but analysts are now saying that this decline is showing signs of leveling off. The American Bankruptcy Institute analyzes Chapter 7, Chapter 13 and Chapter 11 bankruptcy filings using information provided by Epiq Systems Inc., and data for the first quarter of 2016 shows that commercial bankruptcies were up by nearly 25 percent compared to the same period in 2015.
South Carolina residents may recall that the prominent for-profit higher education company Corinthian Colleges filed for Chapter 11 bankruptcy in May 2015. In a March 25 speech, the U.S. Secretary of Education said that investigations had linked 91 of the troubled educator's campuses with fraud, which observers hope will make it easier for its former students to apply for debt relief.
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.
South Carolina residents may have heard that rapper 50 Cent was ordered back to bankruptcy court over pictures he posted to his Instagram account. The rapper, whose real name is Curtis Jackson, filed for Chapter 11 bankruptcy in July 2015 after he was ordered to pay $7 million to a woman after leaking a sex tape she was in. The judge said in her ruling that she was concerned about a lack of transparency in the case, which was what instilled confidence in the bankruptcy process.
As the new year continues forward, many South Carolina residents may be wondering how they can get their debts under control. While some people may be struggling with auto loans or credit card bills, others may be trying to pay down a large student loan. Whatever the debt is, there are several solutions to getting rid of it.
Many South Carolina residents who are struggling with financial obligations realize that their credit rating will take a hit if they file for bankruptcy. There are a few ways a person may begin repairing credit soon after the bankruptcy is filed, however.
Even celebrities like Tori Spelling of "Beverly Hills 90210" fame can have financial troubles, just like many South Carolina residents who are overwhelmed by debts do. Media reports citing her husband, Food Network host Dean McDermott, allege that an outstanding balance of $40,000 has prompted American Express to file a lawsuit against her. A source close to the 42-year-old Spelling expressed surprise that other credit card companies that she owes money to have not sued her as well.
Many people in South Carolina are overwhelmed by credit card debt that they can't afford to pay back. When a debtor can only make the minimum payments on their credit card bills each month, interest will continue to accrue, and the debt could take several years to pay off in full.