If you’re currently facing a financial crisis, you’re far from the only person in Louisiana to be going through such times. Where finances are concerned, there is typically an ebb and flow; some years may be better than others. It’s often surprising how quickly things can get out of hand once credit card debt starts piling up or an unforeseen circumstance arises that carries exorbitant expenses, such as a medical emergency. When researching potential forms of debt relief, those with steady incomes may want to consider Chapter 13 bankruptcy.
This type of debt relief is often known as the working man’s plan because you must be earning a steady income to even be eligible. Chapter 13 is a type of repayment plan where your payments are restructured so you retain your assets while continuing to pay off your debts. The plan requires court approval before it can be implemented. Another possible benefit to this type bankruptcy (as opposed to Chapter 7) is that it only stays on your credit record for approximately seven years.
The restructured payment plan in a Chapter 13 bankruptcy are usually arranged so payments are made over a span of three to five years. Your monthly payments would be a set amount. Any past due car payments or mortgage arrears can be incorporated into a repayment plan.
Some people choose Chapter 13 in order to avoid wage garnishment or stop a foreclosure process. Since no two financial crises are exactly the same, what may be the best option in one situation may not work at all in another. That’s why it helps to discuss a particular problem with an experienced bankruptcy attorney before deciding which route to take. Simon, Fitzgerald, Cooke Reed and Welch is a bankruptcy law firm committed to assisting anyone in Louisiana in need of debt relief guidance.
