When dealing with the hardships of debt, Louisiana residents may spend a great deal of their time looking for ways to get out from under that debt. Some options may seem appealing but have questionable reliability. Of course, Chapter 13 bankruptcy offers a legal way to address outstanding debt through repayment plans.
Chapter 13 bankruptcy can benefit those who qualify in a variety of ways. Instead of liquidating assets, individuals work to repay creditors over time. This option is useful for keeping a home in the event that a person has fallen behind on mortgage payments. The repayment plan could help catch up on missed payments and reach a point where the individual could remain current on the loan. This option could also help if one wants to eliminate a second mortgage while struggling with the first mortgage.
Chapter 13 is also a useful option for those who do not qualify for Chapter 7. Though Chapter 7 is the most common form of consumer bankruptcy, it does not work for everyone. If a person does not pass the means test, meaning he or she makes too much money to qualify for Chapter 7, creating a repayment plan under Chapter13 could be a useful route to consider.
Filing for any type of bankruptcy is a major step. Louisiana residents who are struggling with their overwhelming debt may want to review Chapter 13 bankruptcy and discuss this possible option with knowledgeable attorneys. Legal professionals can provide insight into whether this or another debt relief route could work for certain circumstances.