Consumers who find themselves overwhelmed by debt may be in that position due to factors beyond their control. Job loss or a medical emergency are only two of the  most common reasons that a Louisiana adult may fall behind on certain types of monthly payments. Depending on the type of debt someone owes, debt reorganization may be the most practical way to confront the problem and lay the groundwork for a better future.

Chapter 13 bankruptcy allows the consumer to reorganize balances so that he or she is able to make reasonable payments toward debt. It can take a few years to complete this process, but is a beneficial option for those who earn too much to be eligible for Chapter 7 bankruptcy. It is also ideal for those who wish to remain in their homes or keep their most or all of their personal property.

If a Louisiana applicant experiences additional financial changes while under the protection of Chapter 13 bankruptcy, it is possible to adjust the terms of the repayment plan. Upon filing the original petition, the automatic stay will go into effect, which halts all creditor contact and attempts at debt collection. An assessment of the individual financial situation will reveal if this is most beneficial option for a consumer.

Making the choice to file for bankruptcy is a significant financial decision. Someone who is considering the benefits of debt reorganization may find it beneficial to first discuss this choice with an experienced bankruptcy attorney. Experienced guidance can ensure a potential bankruptcy applicant is making smart choices for his or her future.