Many individuals in Louisiana and across the country regularly worry about the state of their finances. There can be many different ways people may amass debts, including losing a job, having an unexpected medical crisis or even simply overspending a budget. Fortunately, there are likely multiple options available for those interested in pursuing debt relief.
For some, strict budgeting is an easy way to begin cutting back on spending and putting money toward paying off debts. Choosing to pay off the the credit card with the highest interest rate first is often a good step. Another option is to take on side jobs. This can bring in more income that can also be added to monthly payments.
When these methods are not enough, those in debt must look to other avenues. One possible solution is to file for bankruptcy. For individuals, the two most common forms of bankruptcy are Chapter 7 and Chapter 13. Under Chapter 7, unsecured debts are wiped out when a person's assets are liquidated, which typically allows a fresh financial start. Those who file Chapter 13 keep their assets and use a payment plan to pay back their debts over a set period.
Whether a person is interested in filing for bankruptcy or employing another method of debt relief, consulting an experienced Louisiana bankruptcy attorney would likely be beneficial. An attorney could assist by examining a person's circumstances to determine the best course of action for his or her situation. Additionally, an attorney could aid in any future related legal proceedings.
Source: nerdwallet.com, "How I Ditched Debt: New Parents Quit Credit Cards", Jeanne Lee, Nov. 14, 2017