Credit card debt can be a heavy burden for some Louisiana residents. However, dealing with significant debt does not have to be overwhelming. When debt gets to be too much to handle, those in debt may want to look into the different financial relief options available to them. Chapter 13 bankruptcy could be one possible solution.
According to the Wall Street Journal, credit card debt has reached one trillion dollars in America. Some people find themselves in debt because they only make the minimum payments on their credit cards. In many cases, this makes debt worse because of compound interest. Another common factor in acquiring debt is not tracking spending. Sometimes people do not realize how much money they are spending until it becomes too much to easily reduce.
Luckily, options such as Chapter 13 bankruptcy exist to help people get out of debt. Unlike other forms of bankruptcy, individuals typically get to keep their property when filing Chapter 13. Under this form, a payment plan is created which allows the person filing to have the chance to reorganize their finances. These plans often require three to five years to complete.
Filing for Chapter 13 bankruptcy could be the first step for many Louisiana residents to regain financial stability. Those interested in learning more about the advantages of filing for bankruptcy may consider consulting an experienced bankruptcy attorney. An attorney could evaluate a client's situation and determine the best course of action as well as provide advice and support throughout the completion of the bankruptcy.
Source: barrons.com, "Here Are the 5 Biggest Mistakes You Can Make With a Credit Card", Emily Bary, May 4, 2017