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Lafayette Bankruptcy Law Blog

Individuals may have many forms of debt relief at their disposal

Debt has become a serious problem for many consumers in Louisiana and across the country. While there may be several possible reasons for these deficits, one of the most common causes is due to the overuse of credit cards. Fortunately, consumers may have multiple options at their disposal for achieving debt relief.

A solid first step for those in debt is to make a list of all credit card balances, taking interest rates and minimum payments into consideration. If the debt is less than 15 percent of one's income, paying more than the minimum each month can help to decrease the total more quickly. When expenses exceed income, however, other options are likely more viable.

Vitamin World files for Chapter 11 bankruptcy

There may be many different reasons a company in Louisiana or elsewhere may desire to change its financial structure through Chapter 11 bankruptcy. In some cases, profits may not be as high as owners expect. Other times, financial obligations like rent or other bills may become too expensive. Vitamin and health supplement retailer Vitamin World recently made the decision to file for Chapter 11.

Many retailers have recently felt the pressure to financially reorganize their businesses due to declining traffic at stores located in shopping malls. Representatives from Vitamin World have stated that one of the main reasons the company decided to file was to relieve itself of expensive leases in such locations that cut into its finances. The decision will allow Vitamin World to restructure its real estate portfolio while continuing to service customers.

Credit card debt and your college years: A way out

College is an exciting time for many people, but it can also lead to an excessive amount of debt. Many teens and young adults don't fully understand the implications of taking on debt. They're promised a strong financial future with a job in their field, so even though they don't have it yet, it seems like everything will work out later on.

Placing student book costs on credit cards and using credit during the college years makes sense for some people, but later on, you could end up paying those debts back over and over again. Some credit cards have interest rates at 25 percent or higher, making it very easy to end up in over your head. Missed payments add up, and fees can make catching up to the debt near impossible. Add to that a situation where a student can't find employment, and the one-time healthy and planned debt becomes a major problem.

Bankruptcy can help individuals address significant debt

A Louisiana resident may find him or herself in debt for any number of reasons. Some people might struggle with paying medical bills, whether from an ongoing condition or from an unexpected emergency. Others may have lost their primary source of income or have problems with overspending, leading to significant credit card debt. Though there are likely various ways to take care of these financial issues, one approach is to file for bankruptcy.

Two forms of bankruptcy, Chapter 7 and Chapter 13, are the most common forms for individuals to file. Under the first, all nonexempt assets are liquidated and a person's debts are wiped out. With Chapter 13, a payment plan is created by the court that allows individuals to repay their debts over a set period. These periods typically last from three to five years. 

Perfumania files for Chapter 11 bankruptcy

There are many different facets to owning a business. Whenever a company fails to bring in profits, owners must make difficult financial decisions on how to deal with the problem. One available option for Louisiana proprietors may be filing for Chapter 11 bankruptcy. Perfumania Holdings has recently joined a long list of retailers to make the decision to file.

Over the past three years, Perfumania has closed 103 stores in an unsuccessful attempt to cut costs. As part of the reorganization, owners plan to close another 64 stores to help consolidate and restructure their finances. Though a number of stores are closing, the company plans to keep the remaining stores open for business. 

Bankruptcy may help individuals overcome crushing debt

As Louisiana residents graduate college and begin living on their own, they often soon find their expenses piling up. Between paying rent, utility bills and other living expenses, young adults may quickly find themselves in debt. Some may be able to handle the debt on their own, but others may choose to file for bankruptcy.

When dealing with significant debt, one way to tackle it is by putting more money toward the largest balance while paying the minimum amount on smaller debts, so as to save money on interest. Another option is to make restrictions on buying nonessential items. If possible, taking on more hours at a current workplace or finding smaller side jobs to complete could also help bring in more money to pay bills.

Branch of Goodwill now filing for Chapter 11 bankruptcy

Many people are aware of the fact that the retail market has seen a significant downturn in sales over the past year. To cope with the loss in sales, many companies in Louisiana and other parts of the country have chosen to file for Chapter 11 bankruptcy. A branch of the Goodwill corporation has recently also made the decision to file.

Goodwill has attempted to expand its business over the past five years. Unfortunately, like many other retailers, it has suffered from a decline in sales. Representatives from the company stated that these factors, in addition to an increased operating costs, are the main reasons branch executives have chosen to file for bankruptcy.

There may be many different avenues to finding debt relief

Many consumers in Louisiana may be facing overwhelming debt. Whether due to medical debt, credit cards or any other payments, this can become a serious problem when not properly dealt with. In addition to putting a strain on finances, severe debt can cause increased amounts of stress on a person as well. However, those facing this financial struggle may have several options available to provide debt relief.

In many cases, finding a way to efficiently pay off the debt may be the preferred method of relief. Knowing and paying off the bills with the highest interest rate may help to clear out bigger debts earlier. Making sure to always make at least the monthly minimum payment can help to keep interest rates down. Budgeting is another way those in debt may be able to reduce payments. Taking all necessary expenses into consideration and creating a limit based on income could help sort out finances.

There are many things the automatic stay can do for you

There may come a time when you realize that filing for bankruptcy is the best way to improve your financial situation. This isn't an easy decision to make, but it's one that can most definitely work in your favor.

One of the first things you need to think about is the automatic stay. In short, this will kick in once you file your bankruptcy paperwork. From there, you will receive protection from all bill collectors and creditors.

Are investments liquidated during Chapter 13 bankruptcy?

Whenever an individual is suffering from a significant amount of debt, he or she may find it beneficial to determine the options available to stabilize finances. In some cases, filing for bankruptcy may be the best solution. Many Louisiana residents who consider filing may wonder what will happen to their assets and investments. By choosing Chapter 13 bankruptcy, many types of investments are left untouched by creditors.

When filing for Chapter 13, a person is put on a payment plan that allows him or her to pay back what they owe over a set number of years. This plan, which is proposed by the individual and must be approved by the court, restructures finances and works with a person's income levels so that debts may be repaid efficiently. This option also typically prevents total asset liquidation.


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