There can be many different reasons a Louisiana resident may be in severe debt, whether from overspending or simply falling behind on certain bills. When this occurs, it is often beneficial for the person to look into what options he or she may have for financial relief. Bankruptcy is often the best choice for many.
Chapter 13 is one of the most common forms of bankruptcy chosen by individuals. With this form, a payment plan is created by the the filer for court approval, and financial obligations are combined into a singular, regular payment to the bankruptcy trustee. This gives the filer the opportunity to repay the debts over the course of a specified period which typically lasts three to five years.
For those who have assets such as a home, Chapter 13 is often an advantageous choice. This form of bankruptcy does not liquidate assets like a Chapter 7 proceeding, allowing consumers to keep their homes while still paying their debts. This form can even stop a foreclosure for those behind in their mortgage payments, permitting them to catch up on those payments.
Anyone interested in learning more about the various forms of bankruptcy could consult an experienced Louisiana attorney. An attorney could examine a person’s financial situation to help determine the best course of action for the circumstances, whether it be filing for Chapter 13 or otherwise. In addition to providing more information, a lawyer could also assist in the filing process and any future related legal proceedings. Many consumers who choose to file for bankruptcy are able to overcome their financial problems once and for all.
Source: propublica.org, “Bankruptcy: What’s the Difference Between Chapter 7 and Chapter 13?“, Paul Kiel, Sept. 27, 2017