Someone considering filing for bankruptcy may feel hesitant to move forward with this action. Many people tend to focus on the negative aspects of Chapter 7 bankruptcy, and they may think that this debt relief option may do more harm than good. Fortunately for individuals in Louisiana and elsewhere, there are many benefits to this option.
First of all, a successful Chapter 7 bankruptcy case could allow parties to discharge debts in a matter of months. The process typically takes approximately three to six months for qualifying parties to complete. This length of time may be more favorable for obtaining debt relief than the damage that could take place during that same length if debt continues to accumulate.
Because Chapter 7 is also known as liquidation bankruptcy, many people may worry that they will lose all of their assets in order to pay back debts. Luckily, this is typically not the outcome. Many assets are exempt from liquidation in order to prevent placing an undue hardship on the filing party. Furthermore, any wages or other income earned after the bankruptcy petition is filed remains the property of the filer.
These are just a couple of the benefits that Chapter 7 could offer as a debt relief option. If Louisiana residents feel that this route could help them address their outstanding debt, they may want to determine whether they could qualify. There are legal professionals available who are well versed in this area and who could assist interested parties through the process and on to a more stable financial future.