When struggling with financial issues, namely substantial debt, many Louisiana residents want to find the best option for their particular circumstances. They may even have ideas in mind for finding the debt relief they strive for, like filing for bankruptcy. However, it is important to remember that qualifications must be met for Chapter 7 or Chapter 13 bankruptcy.
Though Chapter 7 is the most commonly-filed bankruptcy petition, it is not for everyone who has debt. For instance, Chapter 7 has income limits, and liquidation may not be an option for parties who make over a certain amount of income or have too many valuable assets. As a result, they may need to opt for another type of bankruptcy, like Chapter 13.
For individuals who make an income that disqualifies them for Chapter 7, working with a repayment plan through Chapter 13 may be in their better interests. This option does not involve liquidation, so the majority of assets can be kept. The bankruptcy court must approve the repayment plan, and once it is approved, the individual can work on making the payments as dictated by that plan.
There are multiple types of bankruptcy so that individuals facing various circumstances can find the option that works for them. Louisiana residents who do not qualify for Chapter 7 may not want to feel out of luck and, instead, may want to explore Chapter 13 relief. Working with knowledgeable bankruptcy attorneys can allow interested parties to understand their options and how to utilize the best available routes for handling their overwhelming debt.