Debt in Louisiana: The Basics

Statute of Limitations in Louisiana

A statute of limitations sets forth the maximum period of time, after certain events, that legal proceedings may be initiated. For debt, this time period begins after the debtor has become delinquent on the account, meaning the period begins on the day after you have made your last payment. Statutes of limitations vary from state to state and depend on the type of debt as well as where the original transaction took place.

The statute of limitations for Louisiana are as follows:

• Oral and Written Agreements: 10 years
• Promissory Notes: 5 years
• Open Accounts (credit cards): 3 years

To fully understand the statute of limitations in Louisiana and to see where you stand, it is best to contact a debt relief agency in Louisiana.

Debt Consolidation Loans in Louisiana

This type of debt management in Louisiana is when you consolidate all of your debts into one loan. Generally, these debt consolidation loans in Louisiana come with a lower interest rate, making it more affordable to pay off your debts. Debt consolidation in Louisiana is one of the most common forms of debt relief in the state.

When going through Louisiana debt consolidation programs, debt consolidation companies in Louisiana will negotiate the terms of your new loan with your creditors on your behalf. In some cases, once you have paid enough of your debts, some debt consolidation companies in Louisiana may choose to move forward with debt settlement with your creditors.

Note that debt consolidation loans in Louisiana do not lower the principal amount of debt owed, just the interest rate.

Debt Settlement in Louisiana

This debt management program in Louisiana is when a debt relief agency negotiates with your creditors on your behalf to lower the principal amount of debts owed, and even perhaps lower your interest rate on those debts. Because this option eliminates some of the debt you owe through debt forgiveness, this form of debt management in Louisiana can be very appealing. However, not everyone can qualify for this option, though most debtors do qualify for debt consolidation in Louisiana.

Consumer Credit Counseling

Credit counseling in Louisiana is when a debt relief agency provides a debtor with classes, or counseling, on how to better manage your finances in the future as well as how to manage any current debts.

Credit counseling is often paired in conjunction with another form of debt relief in Louisiana, such as debt consolidation. For example, Louisiana debt consolidation programs may recommend that you take consumer credit counseling while also going through a debt consolidation loans program.

Bankruptcy in Louisiana

There are many tools available to help you become debt free, however, bankruptcy in Louisiana should be considered your last resort. This is because the bankruptcy process can have a long-lasting negative effect on your credit score. When filing for bankruptcy in Louisiana, there are two more common options, including bankruptcy chapter 7 and bankruptcy chapter 13.

If you are considering going through the bankruptcy process, it is best to first contact a company that offers debt management services in Louisiana that can help you exhaust all other options of debt relief in Louisiana first.

Getting mounting debt under control can be a very stressful situation. To help take the stress out of the situation, contact a company that offers help with debt management in Louisiana. After speaking with a licensed and knowledgeable professional about your unique debt situation, they will be able to advise you on your best course of action, whether that is debt consolidation in Louisiana, debt settlement in Louisiana, consumer credit counseling or, as a final resort, bankruptcy. With help, it is possible to become debt free in Louisiana.

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