Though the amounts and the types of debts may be different, many Louisiana residents will likely owe some form of financial obligation at some point in their lives. Whether the result of medical bills or because of overspending, owing substantial amounts of money can become overwhelming when not dealt with appropriately. Chapter 13 bankruptcy may be one option for helping people overcome excessive debt.
Credit card debt can be a heavy burden for some Louisiana residents. However, dealing with significant debt does not have to be overwhelming. When debt gets to be too much to handle, those in debt may want to look into the different financial relief options available to them. Chapter 13 bankruptcy could be one possible solution.
Louisiana residents facing significant financial problems have multiple alternatives for dealing with their debt. Filing for bankruptcy is one option they may wish to pursue. The two most common types are Chapter 7 and Chapter 13. For individuals or couples with a regular income, Chapter 13 may be the best solution. This type of proceeding allows filers to propose a payment plan over a period of time to repay their debts while keeping their assets intact.
There are numerous reasons Louisiana residents might be in debt. Common causes of debt are significant medical bills, overspending, or even divorce. Luckily, there are several options for dealing with these financial problems. One possible option to take care of overwhelming debt is to file for Chapter 13 bankruptcy. This type of bankruptcy allows individuals to reorganize their debt so that they have an easier way to repay it.
For some Louisiana consumers, getting back on their feet after financial difficulties can take a long time. While the support and guidance of an experienced attorney can be invaluable when a person files for Chapter 13 bankruptcy, it can be just as valuable in the three to five years it takes to complete the process. Many issues can arise during that time, one of which is the need for a new vehicle.
In Louisiana and other states, some people are said to never leave their homes without their credit cards. According to the Federal Reserve, credit cards are used to make more than half of all purchases nationwide. However, if managed properly, a credit card can be a consumer's friend; if not, it can be an enemy that may bankruptcy protection to alleviate.
Louisiana residents who are facing financial hardship may be looking at ways to achieve debt relief. Many people avoid bankruptcy because they fear losing everything and being left destitute. However, the intention of the U.S. Bankruptcy Code is to provide victims of unanticipated and costly emergencies with opportunities to re-establish financial stability and have a fresh start.
Committing to continuing payments over a three to five year period without any defaults whatsoever is an enormous challenge. This is the commitment Louisiana consumers make when they file for Chapter 13 bankruptcy. However, circumstances can change significantly during that time -- job loss, medical emergencies and other problems can jeopardize a consumer's chances of maintaining payments. This can lead to the court dismissing the case, subjecting the consumer to creditor harassment and potential foreclosure all over again.
Louisiana parents may find it difficult to refuse a request to co-sign a loan -- particularly if it is for a child who is just starting out and trying to build a credit history. However, this merits careful consideration. Learning about the risks and gaining an understanding of the remedies, including bankruptcy protection in some circumstances, is likely prudent.
The Federal Reserve says credit card debt was second on the list of consumer debts in 2014. Financial advisors also say that a significant number of consumer bankruptcy filings involve overwhelming credit card debt nationwide, including in Louisiana. They say the reason for this is consumers forgetting to manage their credit card use. Reportedly, most users are not as careful when using their credit card as they are when spending cash. Very often, this results in the consumer becoming overwhelmed by debt.