Lafayette Bankruptcy Law Blog

Far too many people struggling with overwhelming levels of debt choose to put off filing for bankruptcy out of concern for how it will impact their credit. There's a common myth about bankruptcy that it will keep you from securing credit in the future.

While it is true that a bankruptcy on your credit report will impact your credit worthiness for some time, it will not be a permanent blemish. Also, simply filing for bankruptcy will not prevent you from securing new lines of credit in the future. Taking the right steps to rebuild your credit after you file for bankruptcy can help ensure that you have a healthy financial future ahead of you.

Businesses can be successful for years, and due to changes in the economy, competition or other factors, they can suddenly find themselves facing significant downturns. In these cases, financial issues can cause a once-booming company to struggle significantly. In fact, Chapter 11 cases are not uncommon when this type of scenario strikes.

Louisiana residents may be interested in a bankruptcy petition that was recently filed by retail giant Sears Holdings. Reports indicated that the company has billions of dollars in outstanding liabilities. The bankruptcy filing came after a debt payment for $134 million came due, and the company could not pay. The company hopes to stay in business despite the financial struggles they are currently facing. However, 300 of their stores have already closed.

Running a business comes with its financial ups and downs. Unfortunately, some Louisiana businesses may struggle more often or face a sudden blow to their operations. In these cases, it is possible that bankruptcy may be a needed option in order to find debt relief.

If the situation has become too much to overcome, businesses could file for Chapter 7 bankruptcy. This options involves liquidating business assets in order to repay creditors, and in the end, the business will have to close. Sole proprietors tend to utilize this form of bankruptcy more often than other types of business entities. However, limited liability companies, corporations and partnerships could also file for Chapter 7 if they deemed it necessary, but only sole proprietors can obtain a discharge of debt.

It is common for Louisiana residents and those elsewhere to have a love-hate relationship with their finances. They may love when they have a little extra income or splurge on a treat, but they may also hate the amount of debt they have. For some, their debt may be so consuming that they rarely, if ever, have the chance to buy even a small treat. Fortunately, avenues like bankruptcy may be able to help.

Bankruptcy is a major step when looking for debt relief. While it can allow individuals to get back on track financially, it only works when completed correctly. Parties looking to follow this route need to make sure that they understand all of their outstanding balances. If they do not, they may not disclose all of their debts in their bankruptcy petitions and to the court, which means that the debts cannot be discharged. As a result, the process may not work as intended.