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June 2018 Archives

Types of creditor claims for a Chapter 13 repayment plan

People in Louisiana overwhelmed by their debts have the option of pursuing bankruptcy protection under the provisions of Chapter 13. A Chapter 13 bankruptcy requires a debtor to develop a payment plan based on current income. A bankruptcy court will review this proposal, and, if approved, direct the trustee to collect payments from the debtor for three to five years.

Court review of car purchase needed during Chapter 13 bankruptcy

People in Louisiana currently making payments as part of a Chapter 13 bankruptcy sometimes need to buy a vehicle. Because a Chapter 13 payment plan lasts three or five years, the legitimate need for a car could arise during that time. Bankruptcy law includes a process for financing a vehicle. A person must first arrange for a loan and then file a Motion to Incur Additional Debt so that the court can approve or deny the request.

Not all debts can be forgiven in bankruptcy

Louisiana residents and others who are thinking about filing for bankruptcy can generally choose between filing for Chapter 7 or Chapter 13 protection. In a Chapter 7 case, eligible assets are sold with the money used to pay off as much debt as possible. In a Chapter 13 case, debts are reorganized and paid over a period of time. It is important to note that not all debts can be eliminated in a bankruptcy proceeding.

Many people unable to pay store credit card bills

When store employees offer a discount or other benefit for signing up for a store credit card in Louisiana, many consumers find the offer tempting. However, the delinquency rate on these store-branded cards has reached its highest point in seven years according to a report from Equifax, the credit reporting bureau. These store-affiliated credit cards have their highest rate of delinquencies since 2011, the bureau said. Approximately 4.65 percent of these accounts are at least 60 days overdue for a payment, an increase from 4.08, the rate of delinquency reported in March 2017.

Strategies to manage Louisiana consumer debt

Americans are on pace to hit $4 trillion in consumer debt by the end of 2018 according to LendingTree. In 2010, they had non-mortgage debt equal to 22 percent of their income. Today, that number is 26 percent, and over the past two years, consumer debt totals have increased by 5 to 6 percent. Auto loan and credit card debts have increased by 7 percent on an annual basis.

Do I have enough debt to file for bankruptcy?

The bills are piling up. Maybe it happened gradually--a missed credit card payment here, a missed car payment there--or maybe it was sudden: severe illness, loss of employment or another catastrophic change. Either way, it's more than you can handle. You've heard that declaring bankruptcy can wipe out debts and give you a fresh start, but you aren't sure if that's an option. Do you really owe enough to consider that?