A struggle with debt is not merely about your finances. Excessive debt can cause tremendous emotional stress. It can also make you put your life's plans on hold and force you to make decisions that only serve the short-term necessity of making payments while actually doing damage to your future prospects.
And the longer you remain in debt, the more harm you could suffer. Most people are aware of this and tried to find ways to remedy their debt woes. Such solutions include debt consolidation and creating very strict budgets and repayment plans. And if you choose to employ one of these methods, you may well achieve your goals and eventually vanquish your debt.
However, there is no guarantee that your personal debt plan will actually work in the end. For example, if you should suffer a setback, such as a divorce, the loss of a job or a medical emergency, your debt repayment plan could suddenly become impossible to maintain, even if you have been faithfully making your payments for many months or years.
There are many other reasons a person may not be able to successfully regain solvency with a debt repayment plan. And for this reason, it can be a good idea to consider the advantages of filing for Chapter 7 bankruptcy before looking at other possible means of debt reduction.
This idea may seem counterintuitive. After all, shouldn't bankruptcy be your last move, done only after everything else has been tried? Well, no, not if it's your best option. With a Chapter 7 bankruptcy, you can have your credit card and certain other kinds of debt discharged within 90 days. This means that rather than being chained to a long-term series of high-interest payments, you will be able to get a fresh financial start.
Certainly, there are situations when a simple debt payment plan can work, but if you are truly in financial hot water, you owe it to yourself to explore all available alternatives. A Louisiana bankruptcy attorney could help you assess your situation and offer suggestions as to your best course of action.