There are myths surrounding bankruptcy that may make some Louisiana residents hesitant to file. However, these myths may cause people to miss out on a helpful debt relief option. Bankruptcy can be a useful tool in difficult financial situations where people are facing overwhelming amounts of debt. Rather than struggle for an indefinite amount of time to pay off significant debt, many may benefit from filing for one of the various forms of bankruptcy.
One major contributing factor in accumulating debt for many individuals and families is the cost of medical bills. This, combined with stagnating wages, could easily lead to financial problems. When this is the case, bankruptcy could be used to regain financial stability. This could help prevent further financial crisis and debt accumulation.
The two most common forms of bankruptcy for individuals are Chapter 7 and Chapter 13. With Chapter 7, assets are liquidated and obligations such as medical bills, loans and credit card debts are discharged. Under Chapter 13, assets are retained and those who file use a payment plan (which must be approved by the court) to pay back their debts over a certain length of time. Most people will find that the advantages to filing for bankruptcy far outweigh any perceived disadvantages.
Any Louisiana resident battling overwhelming debt could consult an experienced bankruptcy attorney to find out more information about the various debt relief alternatives available. In addition to providing more information, an attorney could assess individual situations to determine which form of bankruptcy might be best given one's unique circumstances. Speaking with an attorney could be the first step for many to eliminating oppressive debt.
Source: Time, "Bankruptcy Myths: Chapter 7, Chapter 13", Sean Pyles, Accessed on May 2, 2017