There are numerous reasons Louisiana residents might be in debt. Common causes of debt are significant medical bills, overspending, or even divorce. Luckily, there are several options for dealing with these financial problems. One possible option to take care of overwhelming debt is to file for Chapter 13 bankruptcy. This type of bankruptcy allows individuals to reorganize their debt so that they have an easier way to repay it.
For those who want to pay off their debts but need more time to do so, Chapter 13 bankruptcy might be the solution. It is designed so that individuals with regular income can pay off their debt in installments over a set period of time. The details of these repayment plans are decided by a bankruptcy court and typically last three to five years.
Filing for bankruptcy can be highly beneficial in some situations. It can help those who file begin the process of relieving their debt and also rebuilding their credit. Though the bankruptcy remains on the credit report for seven to ten years, credit ratings often improve soon after filing. Another benefit of filing for bankruptcy is the automatic stay, which prevents creditors from harassing those who declare bankruptcy.
Louisiana residents who suffer from significant debt may find that Chapter 13 bankruptcy is the best solution to their financial problems. An experienced bankruptcy attorney can assist residents by explaining the details of bankruptcy law and how it can be applied to his or her particular situation. In addition to giving sound legal advice, a lawyer could also aid individuals with the filing process to help in their financial recovery.
Source: upnorthlive.com, “Bankruptcy 101”, Accessed on Mar. 6, 2017