Need the low down on debt relief and Chapter 7 bankruptcy?

Many Louisiana residents are currently facing serious financial problems. In fact, some are even in danger of losing their homes. Such circumstances are certainly not unique to this state, as thousands of other people throughout the nation report similar financial struggles. When it comes to debt relief, Chapter 7 bankruptcy may be the most viable option in some situations.

As with most forms of immediate debt discharge, there are laws governing eligibility for those considering bankruptcy. Of course, there are several different types of bankruptcy, and eligibility rules may vary according to type. Therefore, it’s best to do a little research ahead of time to rule out ineligibility before pursuing bankruptcy assistance.

If a debtor is able to repay even a portion of the existing debt, he or she may not be eligible for Chapter 7. Also, the application of anyone with another bankruptcy case dismissed within 180 days of filing for Chapter 7 will be denied. Income is taken into account as well; thus, if a debtor’s income is too high, a Chapter 7 application will not be accepted. In those instances, however, a Chapter 13 proceeding may be appropriate.

Some say the best part about Chapter 7 debt relief is that the process is relatively simple and quick. It’s also often a good way to begin rebuilding credit when attempting to rebound after a financial disaster. If a person determines that Chapter 7 bankruptcy is not the best choice for his or her particular situation, a Louisiana debt relief attorney can help explore other options, including a Chapter 13 debt reorganization.

Source: FindLaw, “Filing for Chapter 7“, Accessed on July 18, 2017