Even though consumers in Louisiana can put the recession behind them, some may experience unanticipated events such as employment loss or medical emergencies that may ruin their finances. The most efficient way to remedy the situation may be personal bankruptcy, but many people associate it with age-old myths that are inaccurate, and they deprive themselves of a fresh start. Bankruptcy might be seen as a friend in need because it can stop creditor harassment, lawsuits, threatening letters, repossessions and more.
Louisiana residents who are facing financial hardship may be looking at ways to achieve debt relief. Many people avoid bankruptcy because they fear losing everything and being left destitute. However, the intention of the U.S. Bankruptcy Code is to provide victims of unanticipated and costly emergencies with opportunities to re-establish financial stability and have a fresh start.
Committing to continuing payments over a three to five year period without any defaults whatsoever is an enormous challenge. This is the commitment Louisiana consumers make when they file for Chapter 13 bankruptcy. However, circumstances can change significantly during that time -- job loss, medical emergencies and other problems can jeopardize a consumer's chances of maintaining payments. This can lead to the court dismissing the case, subjecting the consumer to creditor harassment and potential foreclosure all over again.
Have you been unable to make recent utility payments? Have you missed your last few mortgage or rent payments? If you find yourself in this position, you know that you need to alter your financial approach at once.
After a bankruptcy petition in Louisiana is filed, the petitioner's creditors are so advised by the bankruptcy court. They are also notified of the entry of an automatic stay, prohibiting them from attempting to collect on their debts. After about three to six weeks, the court-appointed trustee will arrange a meeting of creditors in which they -- or their representatives -- can question the consumer and the bankruptcy trustee.
Times can be tough financially, especially following the holidays, and debt loads may overwhelm some Louisiana consumers. While many people know about the protection offered by personal bankruptcy, some prefer to try alternative options before filing for bankruptcy. Fortunately, help is available to guide them through choosing other debt relief options.
Louisiana parents may find it difficult to refuse a request to co-sign a loan -- particularly if it is for a child who is just starting out and trying to build a credit history. However, this merits careful consideration. Learning about the risks and gaining an understanding of the remedies, including bankruptcy protection in some circumstances, is likely prudent.