Regardless of which type you file, bankruptcy does not eliminate all debts. Student loans, child support, alimony, and some tax obligations generally cannot be erased through bankruptcy. It will also stay on your credit report for up to 10 years for Chapter 7 and seven years for Chapter 13, making it harder to get loans, mortgages, or even some jobs.
Spousal Support
When you file for Chapter 7 bankruptcy in Louisiana, most of your debts will be discharged. Debts that can be discharged include credit card debt, medical bills, personal loans, business debts, civil court judgments, utility bills, and more. However, your unpaid alimony, child support, fraudulent debts, student loans, and some taxes cannot be discharged through this type of bankruptcy.
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Filing for bankruptcy is a common tool used by both business and individuals as a debt relief option. Business bankruptcy, however, varies slightly from personal bankruptcy. In any business — whether it be a partnership, corporation, or sole proprietorship — the financial responsibility must fall on the business itself and not on a select individual. What must also be considered is how much and what type of debt is owed, whether the business will continue to operate during the bankruptcy process or shut down, as well as a few other considerations. With these questions answered by an experienced Louisiana bankruptcy attorney, a business owner will know what type of bankruptcy is most appropriate.
Foreclosure
Not only are you tasked with keeping up with a mortgage and car payments, but you must also be on top of your multiple streams of consumer debt. Despite your best efforts, you can easily find yourself overwhelmed and facing home foreclosure. To your benefit, the quality bankruptcy attorneys at E. Orum Young Law Offices can stop foreclosure and help you regain your financial freedom.
Debt Collection
Filing bankruptcy often only becomes a consideration after an individual realizes that there is no way to recover from their financial situation without help. For small business owners, this can be true once they notice that they are not yielding a satisfactory return on investment (ROI). Meanwhile, consumers often take action after seeing their credit score take a hit as they continue to receive an influx of debt collection calls. Finding out that a creditor or lender is suing, however, often sends many individuals into a panic, as they look to mediate the situation as soon as possible.