Having a substantial amount of debt is an issue that numerous Americans face, including many in Louisiana. The manner in which the debt was accrued can differ from case to case, and because of the individual nature of each case, the debt relief avenue that works best can vary from person to person. However, for parties facing overwhelming liabilities, considering bankruptcy may be worthwhile.
Consumer bankruptcy can have many benefits, but it may not suit every situation. For instance, bankruptcy will not always cover every type of debt a person has. In particular, child support, tax debt, alimony and student loans are generally not forgiven during the process. However, if individuals can present evidence that their student loans present an undue hardship, they could potentially be discharged.
Many people also worry about how bankruptcy could affect their credit scores. Certainly, the process will lower scores, but if individuals are already struggling with their finances, especially credit, their scores may be on the low end of the spectrum. As a result, bankruptcy may not have as much of a detrimental effect as feared. Plus, individuals can work to rebuild their credit scores after completing the bankruptcy process.
Finding the best method of debt relief can take time. After all, individuals do not want to make their situations worse. Fortunately, information on the different types of bankruptcy is readily available from local Louisiana legal resources, and interested individuals could consult with knowledgeable attorneys to gain insight on their specific financial affairs and the routes that may be most useful to them.
Source: USA Today, "Going bankrupt? Here's what really happens when you file for bankruptcy", Judith Ohikuare, May 5, 2018