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3 myths about filing for bankruptcy

On Behalf of | May 4, 2022 | Bankruptcy

From overwhelming credit card bills or unexpected medical expenses to difficulty keeping up with payments on a home or vehicle, there are many reasons that you may be struggling to keep up with your financial obligations.

If you are like many Americans, feelings of fear and shame may prevent you from even considering bankruptcy. However, with the right preparation, this important financial tool may be the fresh beginning you need to get your life back on track.

1. You will lose everything you own

Whether you file for Chapter 7 or Chapter 13 bankruptcy, you may be able to keep much of your property thanks to South Carolina’s state exemptions. Up to a certain dollar amount, these exemptions may allow you to keep personal belongings like furniture, jewelry and trade tools as well as equity in your home.

2. You will not be able to rebuild credit

Filing for bankruptcy will have an immediate negative impact on your credit score. However, you may be able to begin rebuilding your credit soon after filing by making timely payments going forward and taking advantage of a secured credit card or credit-building loans.

3. Filing is irresponsible

Faced with overwhelming debt, it can be all too easy to fall further and further behind. Far from being irresponsible. Filing for bankruptcy may help you to regain control of your finances and create a stronger future for yourself and your family.

If one or more of your creditors has already filed a lawsuit against you, it is important that you respond to the court summons quickly. Failing to provide a timely response may result in an automatic judgment against you, and you may no longer be eligible to file for bankruptcy relief.