ON THE MONEY: Discharging debts through bankruptcy

Greg Roberts We have all seen the television ads touting the efficacy of filing for bankruptcy, but the question remains: what impact will pursuing this course of action have on my financial future? More on that later, but, for now, the question is; how does bankruptcy work in South Carolina? Federal laws governing bankruptcy were changed in 2005 by the passage of the Bankruptcy Prevention and Consumer Protection Act. The major impact of this legislation was to make it more difficult to use bankruptcy to eliminate debt. The most oft-travelled road for debtors to travel to have debts discharged is by filing for Chapter 7 bankruptcy. One of the requirements of the 2005 legislation was to require all individual debtors to undergo credit counseling at least six months prior to filing for bankruptcy relief. After the petition for bankruptcy has been filed with the Federal Court, persons must subsequently […]