Is it possible to reduce the amount of my secured debt in Chapter 13 Bankruptcy?

Yes, it is possible to reduce the amount of your secured debt in Chapter 13 Bankruptcy in South Carolina. Chapter 13 Bankruptcy Law allows individuals with regular income to formulate repayment plans with creditors. This type of bankruptcy is also known as the “wage-earner plan”. Under this plan, you and your creditors will agree to a repayment plan. This repayment plan allows you to pay back your debt over a three-to-five-year period, and may include the reduction of the total amount of your secured debt. This means you will only be required to pay back a portion of your secured debt, which is usually based on your current income and financial circumstances. Furthermore, if you are able to meet the repayment plan that is agreed upon, then your creditors may be required to reduce the amount of interest they are charging you. This could also reduce the amount of your secured debt, providing more relief to you and your financial situation. Finally, if you are unable to meet the repayment plan, then you may have to liquidate all of your assets as part of the bankruptcy. This means you would have to sell your assets to pay off any outstanding debt. This could also help reduce the amount of your secured debt. Overall, it is possible to reduce the amount of your secured debt in Chapter 13 Bankruptcy in South Carolina. Depending on your current circumstances, your creditors may be willing to reduce the amount of your secured debt, the amount of interest they are charging, or require you to liquidate your assets in order to pay off the debt.

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