Owing a significant amount of debt can be a stressful situation. Fortunately, for many people in Louisiana and across the country, there may be multiple options for dealing with these financial obligations. One avenue that may be beneficial for some is filing for Chapter 13 bankruptcy.
In some situations, those with debt may be able to solve their problems through credit counseling and setting strict budgets. This may not be enough for others, however. For those with overwhelming debt, bankruptcy may be the best option. Chapter 13 is one of the most common forms for individuals to file.
Under Chapter 13, filers are able to create a payment plan in order to pay back what they owe. Typically, these plans, which must be approved by the court, are completed within three to five years. Assets are not liquidated under this form, which allows people to retain most of their assets, such as property. Though a bankruptcy may stay on a credit report for up to 10 years (seven years in a Chapter 13 proceeding), most people see an increase in their credit scores within a few months after filing.
Anyone facing considerable debt still has hope for overcoming the burden. Whether or not a person is looking to file for Chapter 13 bankruptcy, he or she would likely benefit from seeking out the services of an experienced Louisiana bankruptcy attorney. A lawyer could assess a person's circumstances to help determine the best course of action for his or her situation. Additionally, an attorney could provide assistance in filing as well as guidance and support throughout any related legal proceedings.
Source: USA Today, "You can cut debt with bad credit", Amrita Jayakumar, Dec. 31, 2017