When you file for bankruptcy in South Carolina, you will need to go before a judge in order to have your bankruptcy approved. As our South Carolina bankruptcy lawyers know, a lot of different factors can make a difference as far as whether the judge signs off on your bankruptcy. However, one recent study shows that a simple thing can make a big difference: apologizing. 

In the past, studies have demonstrated that apologizing has made a difference in the outcomes of both civil trials and in criminal trials. Until recently, however, no one had considered the impact of an apology on bankruptcy proceedings.

The Study on Saying Sorry in Bankruptcy

The study on the effect of an apology on bankruptcy proceedings was conducted by two law professors, who presented 137 different bankruptcy attorneys with a hypothetical bankruptcy scenario.  In the scenarios where the debtor offered an apology, there was a greater chance that the repayment plans were approved by the bankruptcy judge than in the cases where the debtors did not offer an apology.

In addition to a greater likelihood of having a claim approved, those who offered an apology were also more likely to be met with greater permissiveness in terms of discretionary expenses. For example, the judge was more likely to permit things such as a child’s gymnastics lessons as discretionary expenses.

The authors of the study indicated that the filing of bankruptcy, in-and-of-itself, could be considered an admission of guilt or acceptance of culpability. However, by apologizing when filing for bankruptcy, this showed that the debtor was more remorseful. The authors of the study indicated that this could be an indicator that the debtor was more serious about getting his finances in order, thus encouraging the judge to be more permissive in approving the bankruptcy plan.

When a judge approves a bankruptcy plan, the only victims are creditors – who are often not present in the court room at the time – and the wrongs done to the creditors are usually small in comparison to situations where an actual crime is committed. However, we know in reality people have apologized too often, and for too long, about debt caused by medical bills, predatory lending, job loss and other factors outside the debtor’s control. Getting experienced legal help is the first step in reclaiming your life.

Will Apologizing Really Help You?

Of course, there is never any guarantee that apologizing is going to make a difference or help your bankruptcy plan to be approved. You still need to create a realistic repayment plan under chapter 13 that meets the requirements set forth by the law and determined by your bankruptcy trustee.

Without experienced legal help, consumers too often spend years or even decades struggling with unmanageable debt, paying little more than interest back to predatory lenders and mortgaging their futures and their retirement in the process.

If you are considering bankruptcy, contact the Columbia, South Carolina attorneys at Matthews & Megna today at 877-253-7705.

In 2006, South Carolina lawmakers passed a bill upping the minimum required insurance coverage for liability insurance to $25,000. While lawmakers intended to boost the required minimum coverage across the board, they neglected one important area: uninsured motorist coverage. 

Now, however, The State reports that a bill before the Senate aims to correct this omission and to take the required minimum coverage from $10,000 to $25,000. Our Columbia, SC accident attorneys know that having sufficient uninsured motorist coverage is very important to protect you if you are in a hit-and-run or in a crash with a driver who doesn’t have insurance. We believe the increase in the amount of uninsured motorist coverage that drivers must buy will help to make sure that everyone in the state can pay the bills in the event of an auto accident.

Understanding Uninsured Motorist Coverage

Uninsured motorist coverage is a type of insurance policy that you buy to protect yourself in case you get into an accident that is the fault of someone who cannot pay your damages.

Under South Carolina law, a driver who causes a car accident is supposed to pay the bills of those who are hurt in that auto accident. Many drivers, however, do not have the money to pay for car accident injury bills, especially since these costs often total in the thousands. In order to ensure that this isn’t a problem and that drivers are compensated for their injuries, South Carolina lawmakers require the purchase of liability insurance.

The liability limits were among the limits boosted in 2006, and there is a minimum coverage requirement of $25,000. This means if you get into a crash with someone and it is his fault, he will have no less than $25,000 in coverage available if needed to pay your bills (the exact amount to be paid will be worked out in a settlement or in court and will be based on the severity of your injuries).

The problem, however, is that not every driver actually buys the required liability insurance. If you get into a crash with a driver who doesn’t have it, then you are left with little recourse except to try to sue the driver and collect from his personal funds and assets (which may be impossible if he has no assets). Uninsured motorist coverage kicks in when this situation happens.

The uninsured motorist coverage will pay your bills that the other driver was supposed to pay. In other words, the uninsured motorist coverage stands in for the driver who was to blame for the crash, covering the costs.

This happens not just in situations where you are involved in a crash with a driver who has no insurance, but also in situations where you get into a car accident and the responsible driver hits-and-runs. Since you don’t know who the driver is in this case, you can’t collect from him and you’ll have to turn to your uninsured motorist coverage.

With a $10,000 minimum limit, the protection you are provided under current law doesn’t actually cover much if you’ve bought only the minimums. If the Senate is successful in boosting the limit up to $25,000, then you will have to buy at least this much coverage and you will be much better protected in the event that you have to rely on your uninsured motorist policy.

If you are hurt in a car accident, contact the Columbia, South Carolina attorneys at Matthews & Megna today at 877-253-7705.

It’s been well-established that 16- and 17-year-old drivers lack the experience to know how to aptly handle some of the curve balls our roads throws at them.

That’s why graduated driver’s license laws are so important. Our Columbia car accident lawyers know that for some time, it seemed as if those measures were effective. The number of motor vehicle crashes and fatalities involving young drivers was down.

Now suddenly, we appear to be doing an about-face, according to a new report from the Governors Highway Safety Association.

The organization tracks fatalities of drivers who are under 18. The recent downward trend was reversed in looking at the first six months of 2012 compared to the first six months of 2011 – and there is every reason to believe that increase is continuing.

Nationwide in the first six months of 2012, the number of 16-year-old passenger vehicle drivers who died on our roadways increased by nearly 25 percent, from 86 to 107. Likewise, deaths of 17-year-old drivers spiked by 15 percent, from 116 in 2011 to 133 in 2012. Figuring the average of both, the GHSA reported an overall increase of 19  percent.

When broken down by state, 25 – including South Carolina – saw an increase, 17 saw a decrease and 8 states (plus the District of Columbia) remained static. Of those states that saw an increasing number of deaths, six of those reported an increase of five or more.

South Carolina’s teen driver fatality rate doubled, from 4 to 8.

Recognizing that this may not sound like a huge number, one must remember we’re talking only about the deaths of the teen drivers – not their passengers. Many more were injured.

Six-month figures for teen passenger deaths in 2012 aren’t yet available. So what we must go on are the driver fatalities, and this upward shift is beyond troubling. Researchers have a few potential explanations.

The first is our overall improved economic status. In a struggling economy, we were seeing fewer people on the roads – period. Fewer jobs, less money for gas – these were things that probably hit the teenage subset perhaps harder than others. Now that we are inching closer to recovery, people are driving more. That inevitably leads to more wrecks.

The second factor is a huge and growing problem, particularly with younger drivers. That is distraction. They are not the only drivers prone to it, but teens appear particularly susceptible to distractions while behind the wheel. We know that teens are among the earliest adopters and aggressive users of new technology, and distractions in general are going to pose greater risks to drivers with less experience. In a sense, they have less attentional capacity to spare. With cell phone technology expanding at an ever-increasing clip, the dangers have never been more pronounced.

And finally, states have slowed with regard to their adoption of graduated driver’s license laws. It was a movement that gained rapid traction in the 1990s, but has since seemed to slow. It is true that many states have adopted significant measures that allowed new drivers to work their way up to advancing responsibilities behind the wheel. But many states have fallen short, and are now seeing the consequences.

If you are injured in a Columbia car accident, contact Matthews & Megna today at 877-253-7705.

Nearly half of all American households are just one unexpected emergency away from financial ruin.

That’s according to a recent report from the Corporation for Enterprise Development, and our Columbia bankruptcy attorneys know that this precarious situation has many people essentially living on edge. They don’t have enough to cover even basic living expenses for a period of three months if something unexpected happened, such as a serious illness or job loss.

What’s more, nearly a third of Americans keep no savings whatsoever.

It’s not that these individuals are lazy or don’t have the foresight. It’s that they are unable to put anything away. Most of these people have jobs. In fact, three-fourths are working full-time. More than 15 percent of them earn salaries of more than $55,000 annually. Yet, they are still living paycheck to paycheck.

You have a lot of converging factors. These include stagnant wages, high credit card debt and overall skyrocketing prices on everything from groceries to gas.

The good news for those who do hit an unexpected financial snag, a chapter 7 bankruptcy can be the turning point. It will allow you to virtually wipe the slate clean and walk away free of most of your outstanding debt. It’s literally been a lifeline for those who bottomed out in the midst of the housing crisis and recession.

Even as we inch toward recovery, many are still struggling, and bankruptcy continues to help thousands of families get back on their feet.

Still, it’s certainly not something you want to enter into lightly. As such, you want to consider whether there are other steps you can take before you reach this point.

So if you’re facing a financial crisis, the first thing you’ll likely need to do is prioritize. Make a list of all your household expenses in order of importance. Depending on your situation, your list might start with your rent or mortgage, followed by food and utilities, then health care costs and insurance and rounded out by student loans and any other debts. The list will look different for everyone. Some might need to put medication costs higher on the list, for example. Either way, this step is important in determining what you might  be able to eliminate.

In some cases, you may be able to ask your creditors for an extension to better be able to pay. Many times, though not always, they will acquiesce. If you can meet with a low-cost or non-profit financial adviser to help you work through some of this, it could be extremely beneficial.

You’ll want to see if there are any expenses you can significantly trim or do without entirely. Reduce your cell phone plan or cancel your Netflix account. Get yourself down to the bare bones.

With all of this in mind, what you don’t want to do is dip into your savings or retirement accounts in order to cover things like credit card debt. The fact is, a bankruptcy will allow you to hang onto that money in the long term, offering a chance to preserve your future financial stability. The fact remains, families wait too long to get help. If your plan requires you to spent years, or even decades, steadily paying down your debt burden, you are likely already in over your head and would do well to speak to an experienced bankruptcy attorney about your options.

If you are considering filing for bankruptcy in Columbia, South Carolina, contact Matthews & Megna today at 877-253-7705.

A bad credit score can have a serious negative impact on many aspects of your life. Unfortunately, many residents in South Carolina are struggling with bad credit. In fact, according to a recent article published in USA Today, Columbia, South Carolina, is one of the metro areas with the worst average credit scores in the entire United States.

Our Columbia, SC bankruptcy attorneys are concerned to hear that so many people in the area are coping with bad credit. We urge residents to understand the steps that they can take in order to begin improving their credit. We also want to ensure that residents understand that bankruptcy can sometimes be the first step in rebuilding your credit, despite what you often hear about bankruptcy being a credit killer.

Columbia, SC Residents Struggle with Low Credit Scores

USA Today published an article on February 7, 2013 that discussed the results of a report recently released by TransUnion. TransUnion is one of the three major credit reporting bureaus in the United States (along with Equifax and Experian). The TransUnion report listed average credit scores for people in different parts of the United States, so it was easy to see where people were faring the worst as far as their credit scores.

According to their list, Columbia, South Carolina, was one of the worst metro areas, with an average credit score for residents of only 650. Areas that did worse included Memphis, Tennessee, with an average credit score for residents of 638; Jackson Mississippi with an average score of 642; El Paso with the same average score of 650; and a city each in Texas and Arkansas. Las Vegas-Paradise also tied with an average score of 650.

Credit scores are determined by several key factors including your payment history; the amount of credit that you have available to you that you’ve used; the age of your credit cards; the type of debt you have and the amount of new debt you’ve recently tried to take on. A bad credit score – including below the 650 range – can result in higher interest rates and a denial of loans in certain cases. Auto insurers, employers and landlords also look at your credit score and a bad score can hurt you there as well.

Can Bankruptcy Help You Rebuild Your Credit?

For those with low credit scores who are struggling, rebuilding your credit usually centers around paying down debt, making payments on time and waiting for negative information to drop off of your credit report. In some cases, however, if you are drowning in debt then the single best thing you can do is to file bankruptcy.

This may come as a surprise to some because you may have heard that bankruptcy is bad for your credit. It is, of course. However, so is getting month after month of negatives posted on your report if you can’t pay your bills. Bankruptcy can allow you to stop the negative data by eradicating your debt or getting you onto a payment plan. Once this happens, you can start to rebuild your credit. For certain people, therefore, who can’t pay their bills and who continue to have their credit scores go down as a result, bankruptcy can be the first step in the road to recovery.

If you are considering bankruptcy, contact the Columbia, South Carolina attorneys at Matthews & Megna today at 877-253-7705.

According to GSA Business, the number of foreclosures in South Carolina was down 24 percent in January 2013 as compared with January 2012. This is good news for many homeowners, although South Carolina is still not doing quite as well as the nation as a whole, since the national average number of foreclosures decreased 28.5 percent in January 2013 compared with the same month in 2012.

Unfortunately, there are still plenty of homeowners in the state who continue to struggle. If you are one of them, it is important to understand that filing for bankruptcy protection may be able to help you to save your home. Our Columbia, SC bankruptcy attorneys can help you to understand when and if bankruptcy is a viable option for you in the fight against foreclosure. 

Bankruptcy And Your Mortgage 

When you file for bankruptcy, the bankruptcy is NOT going to help you to save your house by eliminating your mortgage debt. In fact, if you want to keep your home, you are going to have to keep paying on your mortgage whether you file for a chapter 7 bankruptcy or a chapter 13 bankruptcy.

However, there is a limited exception to this rule for people with certain second mortgages, third mortgages and other non-primary mortgages. If you have a second mortgage or other non-primary mortgage that has no collateral at all, then you may be able to have that mortgage reclassified as unsecured debt in a process called lien stripping. This sounds complicated but isn’t. Basically, what it means is that if your house is worth only enough to pay off the first mortgage, then the second mortgage holder wouldn’t get anything if they foreclosed. They don’t actually have any collateral and the loan isn’t really a secured loan.

If this is the case, then the bankruptcy can reclassify the second mortgage debt as what it actually is: unsecured debt. You could then include it in a chapter 13 repayment plan along with other unsecured debt like credit card debt. You would make monthly payments over time for a period of 3-5 years as determined by the repayment plan created in your bankruptcy and any balance left on your debt would be forgiven.

What if Lien Stripping Doesn’t Apply, Can Bankruptcy Help?

Lien stripping isn’t an option for a lot of residents struggling with foreclosure but this doesn’t mean that bankruptcy can’t help you. When you file for bankruptcy, an automatic stay goes into effect. This stops collection efforts that may be proceeding against you. In other words, the bank can’t proceed toward foreclosing on you. While they eventually can if you don’t get current and start paying, bankruptcy slows the process down and takes time. During this time, you may be able to negotiate a loan modification.

Filing for bankruptcy can also help to eliminate your other non-mortgage debts (under chapter 7) or to make those debts more affordable (under chapter 13). As such, in some circumstances you may be able to fix your other debt problems so your mortgage becomes more affordable and you can keep your house.

If you are considering bankruptcy, contact the Columbia, South Carolina attorneys at Matthews & Megna today at 877-253-7705.

Currently, there are certain types of debt that you can resolve through bankruptcy and certain types of debt that you cannot. One type of debt that is typically not dischargeable nor negotiable in a bankruptcy proceeding is student loan debt. Student loan debt is a massive burden for many young people, and the fact that it is almost impossible to eliminate in bankruptcy is a growing problem.

Lawmakers are currently trying to tackle the issue with the Fairness for Struggling Students Act of 2013. According to Barrons, this Act faces a tough fight due to widespread opposition. Further, similar laws have not been able to pass. Still, our Columbia, SC bankruptcy lawyers will be closely watching the debates surrounding this law: If it passes it would have a major impact on relieving one of the most crippling forms of debt that young people face.

The Bill to Make Student Loan Debt Bankruptable

The Fairness for Struggling Student Act of 2013 has been proposed by Senate Democrats and addresses only certain types of private loans. Government loans would still not be able to be discharged or changed in a bankruptcy proceeding. The change, however, could still make a big difference even though many students do have government loans.

Private student loans tend to have higher rates than government loans, which makes them more burdensome to a student who is struggling with debt. Private student loans also cannot be consolidated with government loans, so students may find it difficult or impossible to refinance and/or lock in rates on these loans. Furthermore, government loans often offer a variety of repayment options that can make them more affordable, including payment programs tied to income that allow the remaining balance of debt to be discharged after 25 years of making payments. Private loans may not offer the same level of flexibility in repayment and may not be as generous as far as deferment, forbearance or loan forgiveness.

All-in-all, private loans, therefore, add up to be a bigger problem for many young people who are facing debt troubles than do government loans. Making these private loans dischargeable in bankruptcy, therefore, could free some students who may spend a lifetime struggling to pay loans that they can never eliminate.

Of course, there are some important counterarguments, including the fact that it could hurt the student loan market if the bill passes by significantly reducing the availability of private loans. However, it is clear that something needs to be done for all of the students who face such debt.

Can You Ever Discharge Student Loans in Bankruptcy?

Since the bill may not pass, students may be concerned about when – if ever- you can discharge student loans in bankruptcy. The answer is that you can discharge some student loans under very rare circumstances if you can prove an undue burden.

Usually, this applies only in limited situations such as when you have become completely and permanently unable to work in a way that would allow you to repay the loan (like if you became permanently disabled). If you have any possible hope of being able to make an argument for the discharge of your student loan debt, you will need to work with a qualified bankruptcy attorney who can help you to build a very compelling case for the court. For others who face high student loan debt, filing for bankruptcy can discharge other financial obligations, which can then allow you to focus on reducing your student-debt burden.

If you are considering bankruptcy, contact the Columbia, South Carolina attorneys at Matthews & Megna today at 877-253-7705.

According to a February 4th article in The Post and Courier, the Corporation for Enterprise Development’s new study has indicated that South Carolina residents are in dire financial straits. In fact, the study considered a variety of economic indicators that attest to a state’s financial stability and found that South Carolina ranked 48th out of 50 states in terms of the financially security of its residents. 

Our Columbia, SC bankruptcy attorneys are concerned that so many South Carolina families are in danger of financial disaster or are already coping with financial calamities. We encourage families who are struggling with a debt burden that is unsustainable to explore all of their options including bankruptcy.

South Carolina Residents are Struggling

According to the Post and Courier, the Corporation for Economic Development indicated that almost half of all residents of the state of South Carolina were living on the brink of financial disaster. Approximately 47 percent of those living in the state have little money saved or have no money saved at all.

Other key factors that impact the perilous financial state for many South Carolina residents included wages that are lower than average; low levels of educational attainment; and an unemployment rate that is higher than average.

There was some limited good news, including the fact that college grads in the state tended to have a lower default rate than other areas in the U.S. and  the state’s high rate of homeownership amid an affordable housing market. However, this news is little comfort to a family that has no savings and that is facing a debt or financial crisis.

What to Do If You Are Struggling

If you have no savings and you lose your job or end up needing to come up with cash for necessities like home repairs or car repairs, it is important to try to stay away from payday loans and car title loans that can have very high interest rates. When possible, pursue more conventional options like bank loans to avoid becoming trapped in a debt cycle you cannot repay.If you already are struggling with debt that has reached unacceptable levels, then bankruptcy might be the answer. Bankruptcy can be preferable to throwing good money away paying interest on a debt that you’ll never get paid down.

Filing for bankruptcy is also a far better solution than cashing in any type of retirement account or borrowing against the equity of your home to try to dig your way out of debt. Your home equity and most types of retirement savings are protected by bankruptcy laws so that you can address your debt problem and fix your financial situation without affecting these very important sources of financial security.

So, if you are in a situation where your debt has become so bad that you truly don’t think you can pay it, you  should not hesitate to get the process of bankruptcy started so you can begin to get back on track.

If you are considering bankruptcy, contact the Columbia, South Carolina attorneys at Matthews & Megna today at 877-253-7705.

Every day, some drivers throughout South Carolina may find themselves struggling as they drive along the road, eyes starting to feel heavy, trying hard to stay awake and focus on their tasks behind the wheel. These drowsy drivers may be morning commuters or may be on long trips or coming home after a long day at work. Unfortunately, in some cases, these drivers even succumb to sleep, letting their eyes close just for a second. It is a scenario familiar to far too many people, and it is a very serious public health issue.

Our Columbia car accident attorneys are concerned that this drowsy driving scenario plays out thousands of times each year in South Carolina. A recent study conducted by the Centers for Disease Control (CDC) and reported by South Carolina News 10 illustrates just how widespread the problem of fatigued driving has become. Other federal statistics also indicate that drowsy driving can be very dangerous. 

Drowsy Driving a Top Concern for South Carolina Residents

According to South Carolina News 10, there is plenty of reason for drivers to be worried about the risks of fatigued driving. They reported on frightening statistics from federal agencies including data demonstrating that:

• 2.5 percent of fatal car accidents involve a drowsy driver.  Drowsy driving crashes may be more likely to be deadly because sleeping drivers who are involved in them do not react to try to stave off the most severe crashes. For example, they don’t slow down or hit the brakes to diminish the force at which the cars collide, and they don’t swerve to avoid hitting another vehicle directly. This data, on the number of deaths, may actually not reflect the full number of drowsy driving crashes either since it can be difficult to determine if a driver was fatigued and since the data reporting methods on drowsy driving aren’t always accurate. The real numbers may be closer to 15-33 percent of fatal accidents.
• Drowsy driving contributes to another 2 percent of crashes that cause injury but not death.
• A large-scale CDC study of almost 150,000 drivers indicates that 4 percent of people had driven while drowsy in the 30 days prior to completing the survey.
• CDC data also indicated that 1 of every 24 people said they’d fallen asleep at lease one time when they were driving in the prior month immediately before the survey.  CDC data may also underestimate how many people are falling asleep because some people may doze off for just a second and not be aware of it.

These statistics are frightening, especially considering how many people drive in South Carolina every day. Every driver in Columbia is potentially at risk of being hurt in a drowsy driving crash and it is important that you do everything possible to avoid getting into a wreck. One way to protect yourself is to make sure you never engage in drowsy driving. Of course, you can’t impact how other people behave and you can’t stop other people from driving when they are too tired. The only thing you can do in these situations is try to steer clear of drivers who seem as if they are not driving safely and to take legal action if a drowsy driver does cause you harm.

If you have been involved in a drowsy driving crash, contact the Columbia South Carolina auto accident attorneys at Matthews & Megna today at 877-253-7705. We have been handling and winning tough cases in the Columbia, Darlington and Florence, South Carolina area for more than two decades.

You found us because you’re going through a rough time and need help from someone you can trust. Rest assured, you’ve come to the right place. Whether you were injured in a car accident, are considering bankruptcy due to tough economic times, need help pursuing Workers Compensation for a job-related accident injury, or suffered another type of personal injury, we work diligently for our clients and can help you seek restitution. We’re real people, just like you. We’re hands-on, roll-up-our-sleeves legal representatives and when you call, you won’t talk to a new person each time—you’ll speak with one of us directly.

If you’re unsure of how to go after the distracted driver who hit you, avoid foreclosure on your home or how to deal with intimidating Workmans Comp insurance adjusters, contact the reliable South Carolina bankruptcy and personal injury lawyers at Matthews & Megna today. We have been handling and winning tough cases in the Columbia, Darlington and Florence, South Carolina area for more than two decades. We know each community well and can serve each of our clients from an informed perspective, with a down-to-earth, local point of view on every personal injury or bankruptcy situation.