Hello. I live in South Carolina. I have some credit card debt that I am really struggling with. My credit card balances range from $100 to about $1800. I was able to pay more than the minimums prior to the pandemic and had not missed a payment in years. About a year ago, the largest company I contract with closed down and my income has reduced by about 60%. I have been able to keep up by using my savings, but those are running out and I’m getting worried. My total debt is less than 10K.
I have considered contacting an attorney, but made a call to a legal clinic first and was given some information I’m a bit confused about. My only assets are 50% interest in a home that is worth about 85K. I do have a bank account, but it never has more than about $500 in it at any given time. I was told, because of the exemptions in South Carolina, I am judgment proof and should not worry about filing for bankruptcy. She said my equity in my home would be protected under the homestead exemption and that they could not levy my bank account if I utilized the wildcard exemption. I know there is no garnishment in SC, and even so, I’m self employed so I do not get traditional paychecks.
My questions: Can being judgment proof really serve as a substitute for bankruptcy?
If I can use a wildcard exemption to prevent a bank account levy, how do I know they will honor that exemption?
Thank you for any information.