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chapter 7 bankruptcy Archives

Discharging student loans in bankruptcy

Anyone in Louisiana carrying around substantial student loan debt may understandably wonder if they can get a fresh start with bankruptcy. Unfortunately, student loan debt is normally not dischargeable. This is an increasingly common concern in the United States since student loan debt, which collectively totals more than a trillion dollars, now ranks second only to mortgage debt as the most common type of consumer debt.

Time restrictions on multiple bankruptcy filings

Filing for bankruptcy is often thought of as a one-time thing, and most filers believe they'll never have to file again after their first bankruptcy is finalized. For some people in Louisiana, though, more than one filing might be necessary during the course of their lives. Technically, there is no restriction on the number of times an individual can file for bankruptcy protection, but there are restrictions placed on when subsequent bankruptcies can be filed. The applicable time period varies based on the types of bankruptcy involved.

Credit card offers can lead to debt

When people in Louisiana sign up for a rewards credit card, they may not realize how easy it can be to wind up with an insurmountable amount of credit card debt. When people receive a signup bonus or other incentives to start using a new card, it can be easy to choose what appears to be a great deal. However, when early promotional periods come to an end and interest starts to rack up, people may find themselves in trouble, facing late payment charges and seemingly endless collection calls.

Tips for recovering from bankruptcy

A Lending Tree study found that most people who file for bankruptcy recover with a credit score of at least 640 within a few years. Some people in Louisiana may be among the 40 percent whose credit score reached 640 within a year. Within two years, nearly two-thirds had this score.

How bankruptcy impacts a person's ability to borrow

There were more than 700,000 personal bankruptcies filed in 2017 according to a study done by LendingTree. Medical and credit card debt were among the most common reasons why Louisiana residents filed for protection from creditors. Although bankruptcy can help a person overcome a debt, it can also cause credit problems in the short-term. For instance, someone who is a year removed from bankruptcy will be charged an interest rate of 10.8 percent.

Comparing Chapter 7 and Chapter 13 bankruptcy

When someone files for bankruptcy, they will have their choice of a number of different chapters. The two most common forms of personal bankruptcy, though, are Chapter 7 and Chapter 13 bankruptcy. These two types of bankruptcy dominate the landscape, and they compose most personal bankruptcy filings in the United States.