Thompson & KingThompson & King2025-03-31T13:09:34Zhttps://www.thompsonking.com/feed/atom/WordPress/wp-content/uploads/sites/1303865/2021/10/cropped-Favicon-32x32.pngOn Behalf of Thompson & King<![CDATA[How long can I stay in my home after filing for Chapter 7 bankruptcy?]]>https://www.thompsonking.com/?p=2556792024-09-02T10:43:28Z2024-09-02T10:43:28ZFiling for Chapter 7 bankruptcy helps people handle overwhelming debt by liquidating non-exempt assets to pay off creditors. A common concern involves how long one can stay in their home after filing. The answer depends on several factors.
Exemptions and your home
Certain exemptions allow individuals to protect specific assets during bankruptcy. For homeowners, the homestead exemption helps safeguard a portion of the home’s equity. the trustee must assess the home's value and determine how much of the equity exceeds the exemption. If the home’s equity does not exceed the allowed exemption, the homeowner may keep the property, even after filing Chapter 7. However, if the equity surpasses the exemption limit, the bankruptcy trustee might sell the home to pay off creditors, although this process can take some time.
Timing and foreclosure
If the mortgage payments fall behind, the lender may start foreclosure proceedings. Filing for Chapter 7 bankruptcy temporarily halts foreclosure through an automatic stay. This stay prevents creditors from taking action against the debtor's property during the bankruptcy process. However, this stay doesn't last forever. Once the bankruptcy case concludes, the lender can continue with foreclosure if mortgage payments remain unpaid. This period provides homeowners with a window to explore alternatives, such as negotiating with the lender or considering a short sale.
Planning your next steps
Homeowners should consider all options, including working with their lender to catch up on missed payments or exploring other housing solutions. By understanding how bankruptcy impacts home ownership, individuals can make informed decisions about their next steps and better manage their financial future. ]]>On Behalf of Thompson & King<![CDATA[Can bankruptcy help you get relief from unsecured debt?]]>https://www.thompsonking.com/?p=2556802024-08-26T11:13:12Z2024-08-26T11:13:12ZStruggling with unsecured debt can feel like an endless cycle. Filing for bankruptcy may provide the relief you need. Understanding how bankruptcy works and deciding if it is the right choice for you can significantly impact your financial future.
What is unsecured debt?
Unsecured debt includes credit card balances, medical bills, and personal loans. Unlike secured debt, unsecured debt does not involve collateral. This means creditors cannot seize specific assets if you fail to pay. High amounts of unsecured debt can make it difficult to meet monthly financial obligations.
How bankruptcy can help
Filing for bankruptcy can help eliminate or reduce unsecured debt in two primary ways:
Chapter 7 bankruptcy: This type allows you to discharge most unsecured debts. You can use exemptions to protect certain assets. After the court approves your filing, you get a fresh financial start free from many debts.
Chapter 13 bankruptcy: This type of bankruptcy creates a repayment plan to pay off debts over three to five years and allows you to keep your property while making manageable payments. This option is ideal if you have a regular income but need help reorganizing your debt.
Both options structure a path for you to regain control of your finances and achieve long-term stability.
Eligibility and considerations
Before filing for bankruptcy, you should evaluate your eligibility and the potential impact on your financial situation. To qualify for Chapter 7 bankruptcy, you must pass a means test to determine if your income is sufficiently low. For Chapter 13 bankruptcy, a stable income is necessary to manage the repayment plan. Understanding these options can be complex, and legal guidance may be beneficial.Bankruptcies can provide relief from unsecured debt and offer a path to financial stability. Taking this step may help you regain financial control.]]>On Behalf of Thompson & King<![CDATA[Defending against deficiency judgments during foreclosure]]>https://www.thompsonking.com/?p=2556812024-08-23T03:27:48Z2024-08-23T03:27:48ZHomeowners facing foreclosure need to prepare for the possibility of a deficiency judgment. Deficiency judgments occur when a lender sells a foreclosed property, and the sale proceeds fall short of the outstanding mortgage balance. In this case, the lender can sue the former homeowner for the remaining debt, known as the deficiency.
Understanding how to defend against these judgments can protect homeowners from additional financial burdens after foreclosure.
Deficiency judgments in South Carolina
In South Carolina, lenders can seek deficiency judgments after foreclosure. However, homeowners have options to defend against these claims. One of the most effective defenses involves challenging the fair market value of the property. South Carolina law requires that the court confirm the sale and consider whether the sale of the property matched its fair market value. If the property sells for less than what it is worth, the homeowner can argue that the lender did not act in good faith to obtain a reasonable price.
Challenging the foreclosure
Another key defense in South Carolina involves examining the foreclosure process itself. Homeowners should ensure that the lender follows all legal requirements, including providing proper notice of the foreclosure and conducting the sale in compliance with state laws. If the lender fails to follow these procedures, the foreclosure might be invalid. This prevents the lender from obtaining a deficiency judgment whatsoever.
Alternatives to submitting to a deficiency judgment
Negotiating with the lender can present reasonable alternatives. In some cases, lenders may agree to waive the deficiency if the homeowner cooperates with the foreclosure process or consents to a short sale. This negotiation can prevent a deficiency judgment and provide a more favorable outcome for the homeowner.Filing for bankruptcy may also offer protection against deficiency judgments. Under bankruptcy laws, it is possible to discharge the deficiency debt or establish a repayment plan. This can provide relief from the financial burden, but it is important to carefully evaluate this option due to its long-term implications.Homeowners in South Carolina have rights and viable options for defending against deficiency judgments. It is possible to capitalize on these solutions by taking proactive steps when foreclosure looms close at hand. ]]>On Behalf of Thompson & King<![CDATA[Understanding the 70-40 rule for VA disability in South Carolina]]>https://www.thompsonking.com/?p=2556822024-08-16T04:49:46Z2024-08-16T04:49:46ZFor veterans seeking disability benefits through the Department of Veterans Affairs (VA), the 70-40 rule is an important factor to understand. This rule helps determine eligibility for additional benefits. It can significantly impact the level of support a veteran receives.
What is the 70-40 rule?
The 70-40 rule refers to a specific VA disability benefit calculation that applies to veterans with multiple service-connected disabilities. To qualify for this rule, a veteran must have a combined disability rating of at least 70% and at least one disability rating of 40% or higher. The rule can determine if the veteran is eligible for certain additional benefits.
Why is the 70-40 rule important?
Meeting the 70-40 rule can lead to increased financial support and access to additional benefits. For veterans in South Carolina, this could mean higher monthly disability payments, potential eligibility for special monthly compensation (SMC), and otherVA benefits. The rule is particularly beneficial for those with severe disabilities.
How to apply?
To determine if you meet the 70-40 rule, review your VA disability rating and calculate your combined rating using theVA’s rating system. If you believe you qualify, you can apply for additional benefits or request a review of your current disability rating. It’s often helpful to consult with a VA-accredited representative or veterans’ service officer (VSO) for assistance. Understanding the 70-40 rule can significantly enhance the benefits and support veterans receive through the VA. By familiarizing yourself with this rule, you can better navigate the VA disability system and ensure you access the maximum benefits available to you as a veteran.]]>On Behalf of Thompson & King<![CDATA[What VA benefits is a widow entitled to?]]>https://www.thompsonking.com/?p=472942024-07-17T06:50:24Z2024-07-22T06:49:50ZLosing a spouse who served in the military is a profound loss. Navigating your entitled benefits can be especially challenging during the grieving process.
Widows of veterans have access to VA benefits designed to provide financial assistance. Understanding these benefits will help you take advantage of available support.
Dependency and Indemnity Compensation (DIC)
One of the primary benefits for widows is Dependency and Indemnity Compensation (DIC). This benefit provides financial support following the loss of a spouse due to service-related causes. In South Carolina and Northeast Georgia, this is a tax-free, monthly benefit.
Survivor's Pension
The VA also offers a Survivor's Pension, sometimes called a Death Pension. This needs-based benefit is available to low-income widows of wartime veterans. To qualify, you must meet income and net worth limits set by Congress. Survivor’s Pension provides financial support to help with basic living expenses.
Aid and attendance
If you need help with daily living activities, you may be eligible for the Aid and Attendance benefit. This benefit provides additional financial assistance to widows who require additional aid. Typically this is for widows who are bedridden, are in a nursing home, or have limited eyesight. You can use this with your DIC or Survivor's Pension.
Education and training benefits
The Survivors' and Dependents' Educational Assistance (DEA) program offers education and training benefits. They can use this for degree and certificate programs, apprenticeships, and job training. It provides up to 36 months of education and training to help widows gain new skills.
Home loan benefits
The VA offers home loan benefits to widows, which can help you buy, build, or improve a home. You may be eligible for a VA-backed home loan with no down payment and no private mortgage insurance.
Health care benefits
The Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) provides health care coverage for surviving spouses. CHAMPVA helps cover the cost of doctor visits, hospital stays, and prescription medications.
Burial benefits
The VA offers burial benefits to help cover the cost of funeral and burial expenses. Eligible widows can receive a burial allowance and a plot allowance. They can also receive reimbursement for transportation costs to a VA national cemetery. Additionally, your spouse may be eligible for a government-provided headstone or marker.
Navigating your benefits
Knowing your rights to VA benefits is crucial for accessing the support you deserve. While these benefits can not make up for your loss, they can go a long way toward helping you move forward. ]]>On Behalf of Thompson & King<![CDATA[What are your rights during a foreclosure in South Carolina?]]>https://www.thompsonking.com/?p=472922024-07-08T06:11:37Z2024-07-11T06:11:19ZFacing foreclosure in South Carolina can be overwhelming, but understanding your rights can help you navigate this challenging time. Understanding your entitlements during the process can make a significant difference.
Right to receive a notice of default
In South Carolina, your lender must provide a notice of default before initiating foreclosure. This notice gives you a chance to resolve the issue before legal proceedings begin.
Right to reinstate your loan
You have the right to reinstate your loan by paying the overdue amount, plus fees, to bring the loan current. This option is available before the sale of your home.
Right to redemption
Even after selling your home, you might have the right to redeem it by paying the full amount owed, including foreclosure and repossession costs, during a specific period after the sale that limits this right.
Right to a fair sale process
The authorities must conduct the foreclosure sale fairly. This includes proper public notice and conducting the sale at a courthouse and the process ensures transparency and a chance to get the best possible price.
Right to remain in your home
You can stay in your home until the authorities complete the foreclosure process and finalize the sale. Eviction can only occur after the new owner takes legal steps to remove you.
Right to legal recourse
You have the right to contest the foreclosure in court. You can seek legal remedies if you believe there was a mistake or that someone violated your rights.
Navigating foreclosure in South Carolina
Understanding your rights during foreclosure in South Carolina can help you make informed decisions and stay informed, seek advice, and explore all available options to protect your interests.]]>On Behalf of Thompson & King<![CDATA[When should I file for bankruptcy?]]>https://www.thompsonking.com/?p=472912024-06-18T08:42:52Z2024-06-21T08:42:25ZWhen to declare bankruptcy
Generally, the appropriate time to file for bankruptcy is after you have tried all possible debt management options but still need more to pay what you owe.
For example, you have large debts you cannot pay in full and miss your mortgage payments. Moreover, you are receiving nonstop calls from creditors and are in danger of foreclosure.
If this is the case, it might be the time to declare bankruptcy to reduce debts, prevent foreclosure and appease bill collectors.
However, as mentioned before, taking this step has serious financial consequences. In South Carolina, credit bureaus report this information for ten years after your declaration. This action damages your credit score, which impacts your ability to loan money in the future.
Bankruptcy as a last resort
If you have exhausted all your alternatives, it might be time to file for bankruptcy. However, you must be prepared for the negative consequences because your credit will take a hit even several years after the incident.
Bankruptcy filings are also available to the public, meaning if you agree to a background check, your employer may see them. They may even discover your credit report and score.
That said, the damage to your credit is not permanent, and you can always build your credit score after you file as long as you avoid incurring more debt.]]>On Behalf of Thompson & King<![CDATA[What is a direct service-connected disability?]]>https://www.thompsonking.com/?p=472902024-06-12T04:32:09Z2024-06-17T04:31:45ZIf you were injured during your military service and have a disability as a result, you may be eligible for benefits from the Department of Veterans Affairs (VA). However, not all disabilities that a veteran may have will necessarily qualify. Knowing what counts as a direct service-connected disability is important for getting the help you need.
Eligibility criteria
To receive benefits for a direct service-connected disability, you need to meet a few requirements:
A current medical diagnosis of your disability
Proof that the disability started or got worse during your time in the military
Medical records and service documents that show a clear link between your military service and your disability
Common types of direct service-connected disabilities
There are many kinds of direct service-connected disabilities. Some common examples include injuries from combat, like shrapnel wounds. Mental health issues, like post-traumatic stress disorder (PTSD) are also common. Other examples include hearing loss from loud noises and breathing problems from exposure to harmful substances.
The claims process
To file a claim for a direct service-connected disability, you need to send a claim to the VA with all your medical and service records. The VA will review these records to decide if you are eligible and how severe your disability is.
Importance of documentation
Having accurate and thorough documentation is very important. Medical records, service treatment records, and statements from fellow service members can be crucial evidence. Keeping detailed records can improve your chances of a successful claim.Nearly 30% of veterans have a disability. Many of them face significant challenges and need the support and benefits they deserve. This is why it is extremely important to understand how to document and report direct service-connected disabilities.]]>On Behalf of Thompson & King<![CDATA[What is the importance of the secondary service connection?]]>https://www.thompsonking.com/?p=472892024-06-06T09:35:57Z2024-06-11T09:35:37ZWhat is a secondary service connection?
A secondary service connection is when a service-connected condition causes or aggravates another disability. In other words, if you have a service-connected disability that leads to or worsens another health problem, you may qualify for more VA disability pay for that secondary condition.
How can you prove a secondary service connection?
To prove a secondary service connection, you need evidence that shows a link between your service-connected condition and the secondary disability. You should have medical records that show how your secondary condition has progressed and how it relates to your service-connected disability. You might also want statements from a healthcare provider that explain how your service-connected disability caused or made your secondary disability worse.
Why is a secondary service connection important?
Proving a secondary service connection can lead to more VA disability pay, which can help you get the care and support you need. Work with your healthcare providers to identify and document any potential secondary conditions for your claim.
Veterans who do not understand the secondary service connection can miss out on valuable compensation. If you think you have a secondary condition related to your service-connected disability, talk to your healthcare provider and start gathering the evidence you need to support your claim.]]>On Behalf of Thompson & King<![CDATA[3 common misconceptions about chapter 7 bankruptcy]]>https://www.thompsonking.com/?p=472882024-05-22T07:15:11Z2024-05-27T07:14:57ZMyth 1: you will lose all your assets
One of the most common misconceptions about Chapter 7 bankruptcy is that you will lose all of your possessions. In reality, bankruptcy exemptions allow you to protect certain assets, such as a primary residence, personal vehicles, household goods and retirement accounts.
Myth 2: bankruptcy ruins your credit forever
While filing for Chapter 7 bankruptcy will initially have a negative impact on your credit score, it does not ruin your credit forever. The bankruptcy will remain on your credit report for up to 10 years, but you can start rebuilding your credit immediately after discharge of the case. By making timely payments, keeping balances low and avoiding new debt, you can gradually improve your credit score.
Myth 3: everyone will know you filed for bankruptcy
Although bankruptcy is a matter of public record, it is unlikely that your friends, family, or employer will find out unless you tell them. The only entities typically notified of your bankruptcy are your creditors and the court.
If you are struggling with debt and considering bankruptcy, it is important to educate yourself about the process. Understanding the facts can help you determine if this is the right path for your needs.]]>