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Bankruptcy Archives

Refinancing a loan prior to a discharge

Louisiana residents and others who have gone through a bankruptcy may be able to refinance a debt prior to the case being discharged. It is important to note that not all creditors will work with individuals who are in the middle of a bankruptcy proceeding. Once a creditor has been found and loan terms proposed, an individual will then need to ask the court for permission for the refinance to take place.

Understanding Chapter 7 and Chapter 13 bankruptcy

People in Louisiana who are facing crippling debt may use personal bankruptcy as a path to a new financial future. When individuals declare bankruptcy, they can file for either Chapter 7 or Chapter 13, depending on their circumstances and finances. The right choice depends on what a person hopes to achieve through their filing and the type and amount of debts.

Louisiana credit card debt burden among the highest

It would take longer for the average Louisiana household to pay off credit card debt than for almost any other state in the country. According to data published by, the average household credit card debt in Louisiana is $8,110, and it would take the average household 17 months to pay it off. Nationwide, people are struggling with debts of all kinds; where a person lives makes a difference when it comes to credit card burden.

How to know when bankruptcy is a good option

Filing for bankruptcy in Louisiana can have a significant impact on one's credit score. It can also affect a person's ability to get a loan in the future. Bankruptcies will stay on a credit report for up to 10 years, but lenders can ask borrowers to disclose a bankruptcy regardless of when it happened. There are alternatives to bankruptcy for those who are struggling to repay their debts.

How to deal with personal debt

For many people in Louisiana, credit card bills are on the rise. This reflects a national trend: In the first three months of 2018 alone, household debt grew by $63 billion across the country. This marked the 15th consecutive quarter of growth in the nation's personal debt burden. Americans collectively owe $13.21 trillion in household and personal debt, including $815 billion in credit card bills and $1.23 trillion in outstanding auto loans.

Credit cards can help build credit when used wisely

Credit cards provide Louisiana residents with a straightforward and convenient way to borrow, but interest charges and fees can mount quickly if revolving balances are not paid in a timely manner. Using them wisely can also help to build credit, and the rewards programs that many lenders have in place give consumers more reasons to charge their purchases.

Is credit card debt settlement a good idea?

Many people in Louisiana are struggling with excessive amounts of credit card debt. They may have difficulty meeting their payment obligations on a monthly basis, racking up late fees and other additional expenses. When accounts begin to head toward default, creditors may agree to settle the debt for less than the full amount owed, especially when it comes to the amounts garnered through fees and interest charges. While debt settlement can be an attractive option for people to handle some of their debts, it may not always be the best choice.

The impact of delaying filing for bankruptcy

Louisiana residents who have overwhelming debt may be reluctant to file for bankruptcy, as they believe that doing so implies that they have failed personally and financially. They may attempt to avoid or postpone filing for bankruptcy, which can make their situations worse.

Important considerations before filing for personal bankruptcy

Not as many people are filing for personal bankruptcy protection these days. Still, some individuals in Louisiana may reach a point where debt is overwhelming enough to entertain thoughts of taking this step. There are times when this type of legal debt relief can be considered a smart move. However, debtors should keep certain factors in mind before exploring the possibilities with this legal lifeline.

Many more seniors filing for bankruptcy

While many older people are planning for retirement, others in Louisiana and around the country are considering bankruptcy. Financial hardship has impacted many older Americans, and the number of older people declaring bankruptcy has increased markedly since 1991. This growth in bankruptcy far outweighs the overall aging of the American population, according to a study from the Consumer Bankruptcy Project. Indeed, the report found that around 800,000 petitions for personal bankruptcy are filed each year, and around 100,000 of them are filed by senior citizens.