When Louisiana residents file for Chapter 7 bankruptcy, they usually do so because they have few assets and no realistic hope of being able to pay off their debts in the future. At the time of the bankruptcy, the debtor is expected to turn over all nonexempt assets to the bankruptcy trustee for liquidation, with the proceeds distributed to creditors. Only then can most of the the debtor's remaining unsecured liabilities be discharged by the court.
While a bankruptcy can help free an individual from debt, it will leave a stain on one's credit. During the seven to 10 years the bankruptcy stays on a credit report, it may be difficult to get a loan or even rent a car. Therefore, it is important to know whether bankruptcy is the best option to overcome financial difficulties.
Elderly individuals sometimes have trouble making ends meet when living on a fixed income. Paying off living expenses and debts can be even more difficult when dealing with typical health problems that come with old age. Louisiana senior citizens and their loved ones might be interested in a recent court ruling that could have ramifications on seniors who file for bankruptcy.
Stress over out-of-control student loan debt is hard to escape. Past due notices in the mail. A phone that continuously rings. Routine internet searches displaying targeted ads that promote debt relief services.
Chapter 13 bankruptcy can be a significant source of financial relief for struggling debtors with a regular income. As we’ve previously discussed on this blog, Chapter 13 bankruptcy works by establishing a three to five year repayment plan. One of the major benefits of this form of bankruptcy over Chapter 7 bankruptcy is that no assets are sold to make the plan work.
If you struggle with burdensome medical debt, know that you are not alone in the struggle. With continuing challenges in the economy and the continually increasing costs of medical care, many Americans carry some degree of medical debt.
In our last post, we briefly described several common bankruptcy alternatives, including debt credit counseling and debt management. As we noted, credit counseling is sometimes done in connection with debt management, which can be beneficial to some debtors. It is important for debtors to realize, though, that debt management plans are not workable for every debtor’s situation, nor is debt management always the most beneficial form of debt relief for every debtor.
Bankruptcy is a serious step in the life of a struggling debtor. The implications of filing should not be blown out of proportion, of course, but they are significant. For this reason, it is important for debtors considering filing for bankruptcy relief to always consider the available alternatives.