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Chapter 13 bankruptcy could help those facing collections

Though the amounts and the types of debts may be different, many Louisiana residents will likely owe some form of financial obligation at some point in their lives. Whether the result of medical bills or because of overspending, owing substantial amounts of money can become overwhelming when not dealt with appropriately. Chapter 13 bankruptcy may be one option for helping people overcome excessive debt.

One credit report website recently analyzed consumers' accounts to determine the average amount of debt their customers face. Reportedly, those whose medical bills had gone into collections owed an average of $3,670. Those who had credit card accounts in collections owed an average of $1,831. Having a substantial amount of bills in collections can also cause credit scores to drop.

Luckily, there are several debt relief options available for those that need them. One remedy is Chapter 13 bankruptcy. With this form of bankruptcy protection, assets typically remain intact. The filer proposes a payment plan to the court. Once it is approved, the debt can be repaid over a certain amount of time, usually covering a period of three to five years. 

Knowing the resources available for taking control of one's fiscal concerns can be the first step to finding financial relief. Louisiana residents interested in learning more about Chapter 13 bankruptcy and any other debt relief options may consider consulting experienced bankruptcy attorneys. In addition to providing more information, attorneys could determine whether this form of bankruptcy is the best course of action for clients and assist them in any future legal proceedings until the bankruptcy process is completed.

Source: marketwatch.com, "The surprising debts that are holding many Americans back", Maria LaMagna, Accessed on June 10, 2017

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