Louisiana consumers may find themselves overwhelmed by debt for many different reasons. One of the consequences of owing a significant amount of debt is the possibility of losing personal property, such as a home, as a result of the efforts of debt collectors. Those who are facing the threat of foreclosure or  repossession may consider the benefits of debt reorganization through Chapter 13 bankruptcy.

Chapter 13 is a type of bankruptcy that is for individuals who want to keep certain assets. With a lot of secured debt, this legal process provides a way to reorganize balances and pay off debt according to the terms of a court-approved bankruptcy plan. This is also a practical option for those who earn too much money or are not otherwise eligible for Chapter 7 bankruptcy.

A debtor who files for Chapter 13 will make payments on his or her debt over a period of three to five years. During this time, the debtor will also enjoy a reprieve from calls and other forms of contact from debt collectors and creditors. Upon completing the terms of the bankruptcy plan, a Louisiana filer will emerge with certain types of debt gone and the ability to achieve a better financial future.

For some, debt reorganization is the right way to deal with significant amounts of debt. Every situation is different, and the most appropriate option depends on the details of the individual financial circumstances. An assessment of the individual case by an experienced bankruptcy attorney can determine if Chapter 7 or Chapter 13 is ideal for debtor.