Facing financial hardship can be challenging, but understanding the options available can offer a crucial step toward regaining financial stability. While often viewed with apprehension or failure, bankruptcy is a legitimate financial tool that is designed to provide a fresh start or a structured path to financial recovery.

In the state of Louisiana, individuals and married couples who are experiencing financial distress may be able to achieve debt relief by filing for bankruptcy.

The financial curveballs of life can sideline you from paying bills and debts or meeting your various financial needs. When experiencing financial hardship, filing for bankruptcy provides a promising solution to help you achieve relief or a fresh start.

Filing for bankruptcy is a powerful remedy for people who feel they hit rock bottom financially. While bankruptcy can help you get a “clean slate” in your financial life, you need to understand what your life after bankruptcy will look like and what challenges you may face in the foreseeable future.

According to statistics compiled by Epiq Bankruptcy, the leading U.S. supplier of bankruptcy statistics, data provided by the United States Courts showed that bankruptcies declined nationwide by 6.3 percent in 2022 from 2021.

According to a 2019 report by Northwestern University, one in every 100 workers has had their wages garnished at some point, resulting in an average loss of 11% of their gross earnings.

According to tabulations by the American Bankruptcy Institute (ABI), bankruptcy filings in 2022 in Louisiana increased nine percent, which was the highest rate nationwide. There was a total of 1,613 bankruptcies, with 24 percent of them Chapter 7 and 75 percent Chapter 13. The remaining one percent was for Chapter 11.

Missing a mortgage payment is often unavoidable. You are shuffling payments around to try and stay afloat, but there just isn’t enough money to cover all of your payments in any given month.

Bankruptcy can very often be the best way of addressing your IRS and tax debt problems. Both Chapters of consumer bankruptcy (Chapter 13 and Chapter 7)

In Louisiana, when a creditor gets a judgment against you, they can then ask the court for permission to begin garnishing your paycheck. Creditors can garnish up to 25% of your paycheck after standard deductions.