Filing for bankruptcy may allow you to eliminate credit card, medical and other types of debts. However, it’s not uncommon for Louisiana residents to refrain from seeking this type of debt relief because of the stigma associated with doing so.
Filing for bankruptcy doesn’t mean that you’re lazy
Those who seek protection from creditors have long been stereotyped as lazy. The truth is that many people who seek a liquidation or reorganization bankruptcy have tried to repay what they owe to their lenders in a timely manner. In some cases, a person must take such a step because a lender refuses a request to renegotiate a loan’s terms even if that request was made in good faith.
A bankruptcy won’t stick with you forever
A Chapter 7 bankruptcy will remain on your credit report for 10 years while a Chapter 13 case will remain on your credit report for seven years. However, your credit score may start to recover as soon as your case has been discharged. It’s also possible that lenders will want to work with you as soon as you have emerged from bankruptcy. In most cases, the most serious consequences of filing for protection from creditors will begin to subside within 18 months of receiving a discharge.
Filing for bankruptcy may come with many benefits such as the ability to reduce your overall debt load and the chance to obtain an automatic stay. After receiving an automatic stay, your creditors are not allowed to contact you about a debt, file a lawsuit or engage in other collection activities. This may give you the leverage needed to renegotiate the terms of a secured loan or otherwise obtain more favorable terms from your lenders.
