Waking up every day with financial troubles hovering can be stressful and exhausting. Many Louisiana residents may think that they must struggle along slowly and hope that their outstanding debts do not finally have dire consequences. However, that does not have to be the case. For many, Chapter 7 bankruptcy could provide numerous benefits.
If one of the reasons that individuals are struggling financially relates to a lack of income or a very low income, Chapter 7 could still help. This avenue is available to those who do not have the money to pay back their debts. However, it does involve the liquidation of assets to pay off certain creditors and allows for other debts to be discharged entirely. As a result, parties would likely have the ability to focus more on buying necessities rather than paying off debt.
Chapter 7 also takes less time than other options like Chapter 13 bankruptcy. Additionally, it protects individuals from wage garnishment and other creditor actions. While this avenue could result in the lowering of credit scores, consumers can work to rebuild their credit to acceptable levels over time, which is often more quickly than many people think.
Before choosing to file Chapter 7 bankruptcy, Louisiana residents may want to ensure that it is the right path for them. Gaining more information could help during this process. Interested parties may want to consider working with bankruptcy attorneys who can answer questions about the process and its potential outcomes as well as help make sure all necessary paperwork is properly filed.