Finding the right debt relief option can depend on a number of factors. Louisiana residents considering the possibilities of reducing or eliminating their debt will undoubtedly want to find the right path for their cases. For some, Chapter 13 bankruptcy may be able to provide them with the relief they need.
Chapter 13 bankruptcy involves the creation of a repayment plan that would allow a qualifying person to pay off remaining debts over time. The court must approve the payment plan before it can move forward. The plan must also include who is acting as the trustee on the case, how the trustee will be paid each month to pay off debts, how the trustee will obtain the money, and the length of the plan. Most Chapter 13 cases last three to five years.
When it comes to paying the debts, priority debts must be paid in full. The next debts that need addressing are secured debts, which will also be paid back over the course of the bankruptcy process. Unsecured debt makes up the last category, and bankruptcy may allow those balances to be reduced or possibly discharged entirely after completing the case.
Chapter 13 bankruptcy typically benefits individuals with a steady income and who can manage monthly debt payments. If Louisiana residents are interested in this type of debt relief, they may want to gain reliable information about the process and about potentially qualifying. Consulting with attorneys knowledgeable in this area of law could help those interested determine whether this course of action could suit their particular needs.