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Misguided debt relief information may worsen financial problems

One of the most important things a Louisiana resident can do when facing serious financial crisis is research state laws regarding debt alleviation options. It's also crucial to make sure one fully understands any and all implications of a proposed alternative debt relief plan. Some people in the past have met with further frustration beyond their initial financial problems when they mistakenly thought debt settlement was a better choice than bankruptcy.

One particular woman was quite dismayed after opting for debt settlement over bankruptcy. She did not realize at the time that she would have to pay tax on the amount of debt forgiven. Another person thought he would lose everything he owned if he filed for bankruptcy, so he chose debt settlement instead. It is actually often possible to file for bankruptcy without losing personal possession.

Many debt settlement programs delay financial stability restoration because customers are advised to stop making credit card payments or paying off other loans and debts. Debt settlement can take several years to be fully processed. In the meantime, it's plausible that a debtor could be sued by a creditor or lender.

Some financial advisers say the most inexpensive and swiftest means to obtain debt relief is bankruptcy. There are several types, and what works for one person may not be the most viable option for another. If someone in Louisiana is looking for debt relief guidance, he or she can request a consultation with an experienced bankruptcy attorney to discuss a particular financial situation.

Source: phillytrib.com, "Debt settlement a bad alternative to bankruptcy", LIz Weston, Sept. 12, 2017

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