Unexpectedly losing one’s job can be a devastating event. Unfortunately, layoffs can affect many people without much notice, and the repercussions can be long-lasting. For some Louisiana residents, ending up unemployed could cause financial strain that may later present a need for Chapter 7 bankruptcy.
In particular, it can be difficult to handle credit card debt after job loss. It may be worth the effort for individuals to contact their credit card companies to determine whether they have a hardship program. If they do, cardholders may be able to obtain leniency when it comes to handling their outstanding balances, such as receiving a lower interest rate. In some cases, the company may even lower the monthly minimum payment, which can be useful because individuals can face serious financial setbacks if they are unable to make even just the minimum payment.
It may be wise to avoid credit card use altogether after losing one’s job. Of course, some parties may find themselves having to rely on credit cards if they run out of savings and have not yet found a way to generate a new income. Unfortunately, using credit cards without having the ability to pay off balances could lead to additional financial troubles.
If the problems become too much, Louisiana residents struggling after job loss may want to look into their debt relief options. Chapter 7 bankruptcy could be an option for individuals with substantial credit card debt who are not generating a regular income. Discussing this option with experienced attorneys may help concerned individuals determine whether it could be right for them.