If you are declaring bankruptcy, you probably have a lot of concerns about your credit score. You may fear that you will never have good credit again. Filing for bankruptcy does affect your credit, but the damage is not irreparable.
You probably know that when you file Chapter 7 bankruptcy in Louisiana, your credit card debt is wiped out; i.e., discharged. Consequently, you may think that maxing out your credit cards before filing bankruptcy is a good idea. It is not.
As you have dealt with overwhelming debt, you have likely looked at all your options. Once you have decided on filing for bankruptcy as your solution, you may next consider when to file. Does the timing of your filing make a difference in the outcome?
If you are like many people in Louisiana, you have severe financial problems. You may have lost your job, or your salary may be far less than what it once was. In the meantime, you may have accumulated substantial debt that you now find you cannot pay. You may be trying to make mortgage payments, car payments, credit card payments, payday loan payments and a variety of other payments all at the same time. Your money simply will not stretch that far, so you may be thinking about filing bankruptcy as a last resort.
If you are like many other Americans, and you find yourself struggling to make ends meet and pay bills on time, you may find yourself on the receiving end of some unwanted attention from debt collectors. If you have ever received calls and communications from debt collectors, you probably have an idea of just how aggressive some of these people can be, but you do not have to suffer through harassing or threatening behavior.
When you hear the term "bankruptcy," you may feel fearful. You may think that filing for bankruptcy is a moral failure or it will ruin your credit forever. There are a lot of myths and misunderstandings about bankruptcy that induce fear and intimidation in people, but you do not need to be afraid.
It is stressful and emotionally draining to go through a divorce. It is often financially devastating as well, particularly for women. Like many divorced women in Louisiana, you may have been quite comfortable during your marriage only to find yourself in dire financial straits once you were newly single, regardless of receiving alimony or child support.
Payday loans are an increasingly popular way for people to get money quick. But these loans can be quite risky because the debt can build up fast and become overwhelming.
One stumbling block that keeps some people from filing for bankruptcy is the belief that it will doom their credit for years. However, it is possible to begin rebuilding your credit promptly, and in just a few months, your credit score may start to rise.
If you are considering filing for bankruptcy and have begun researching the process involved in doing so, you may have come across the term “means test,” and you may be wondering what it is and what it entails. Essentially, the bankruptcy means test determines whether you may file for debt forgiveness through a Chapter 7 bankruptcy or whether you must do so through a Chapter 13 bankruptcy, which involves restructuring existing debts.