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Lafayette Bankruptcy Law Blog

Does finding debt relief mean never getting a credit card again?

After making the decision to file for bankruptcy, the petitioner's financial life will change significantly. If the case is completed successfully, the person may have been able to discharge or reorganize debts and come out on the other side more financially stable. Still, some Louisiana residents may worry that utilizing this debt relief option will mean never getting another credit card.

Fortunately, that worst-case scenario does not have to be the result. True, filing for bankruptcy could make it more difficult to appeal to lenders because previous balances were discharged and not paid back in full, but individuals can do their part to rebuild their credit after completing bankruptcy in order to potentially qualify for a credit card later. Paying bills on time and not accruing considerable amounts of debt could help raise credit scores.

Bankruptcy requires honesty and hard work

Many Louisiana residents struggle with debt for a long time before taking significant steps to address their financial issues. For some, filing for bankruptcy may be the course of action they choose to take. Of course, some parties may be hesitant to move forward with such a serious process, but having the right information may help reduce some of that fear.

When filing for bankruptcy, individuals will need to disclose a considerable amount of information about themselves and their finances. During this process, it is vital that parties are honest and disclose all of their assets and their debts. If a person attempts to hide certain information or to intentionally provide false information, his or her bankruptcy case will likely prove unsuccessful, and the situation could even warrant criminal charges.

Chapter 11 could keep businesses operational while handling debt

When companies fall on hard financial times, many business owners may feel out of hope. Ideas of closing the company and letting employees go may swarm their minds along with feelings of stress and anxiety. However, some Louisiana businesses may be able to utilize Chapter 11 bankruptcy to handle outstanding debt and attempt to keep operations running.

If a company determines that Chapter 11 is the best course of action, it must follow the necessary court proceedings. This type of bankruptcy involves the restructuring of business debts and is the most complex type of bankruptcy. Typically, companies are able to remain operational while they work to get their financial affairs back on track with this debt relief option. However, some of the business-related decisions will need court approval during this time, such as selling assets or starting or ending rental agreements.

Pizza chain Uncle Maddio's files for Chapter 11 bankruptcy

It is an unfortunate part of life that many businesses will not succeed. Though the reasons for that are varied, one thing that many of these businesses have in common is their need to handle any debt incurred. One potential solution for Louisiana business owners is filing for Chapter 11 bankruptcy. This is what the casual pizza chain Uncle Maddio's recently decided to do, in the hopes that it will be able to reorganize debt.

Uncle Maddio's parent company, known as Integrity Brands LLC, filed for Chapter 11 bankruptcy recently. The petition shows that its assets are less than $50,000, which greatly outweighs reported liabilities that may go all the way up to $10 million. The judge overseeing the case granted the request for an expedited hearing.

Are these financial signs pointing you toward bankruptcy?

It's frustrating and scary to find your finances on shaky ground, but this is reality for millions of people. While bankruptcy is not always the best solution, it's something you should at least consider.

Here are several signs that could point you toward a bankruptcy filing in Lafayette:

  • You're hearing from debt collectors: From phone calls to letters in the mail, you continually hear from debt collectors wondering when you're going to pay. Not only is this annoying, but it can bring a lot of stress to your life. Once you file a bankruptcy petition, the automatic stay prevents debt collectors from contacting you.
  • Wage garnishment: If a debt collector files a lawsuit against you, it could result in a wage garnishment. This means that some of the money you earn is taken directly from your paycheck to pay the creditor.
  • You can't pay your bills: This is a common sign that bankruptcy may be the only answer to your financial problems. For example, if you have so much credit card debt that you can't even make the minimum payment, bankruptcy may be the only way out.
  • You have received a notice of foreclosure: This is one of the biggest signs that you're in financial trouble. Foreclosure comes about when you slip behind on your mortgage payments and don't attempt to work with the lender to find a solution. Once you file for bankruptcy, the automatic stay will prevent the foreclosure process from proceeding. This may buy you enough time to figure things out, thus saving your home from repossession.

Small steps may help with debt relief for some but not others

For one reason or another, most Louisiana residents have money on their minds. Some people may be considering what purchases they need to make, and others may be worried about the overwhelming debt they have accrued. For those in the latter category, finding the right debt relief options may be a priority.

People in this predicament have many options to consider. They may be able to work with relatively minor steps to get their remaining balances under control. For instance, some individuals may help get their affairs in order by making sure that they make their payments on time each month in efforts to avoid additional interest and late fees. If payments are late or not paid at all, the outstanding balances will only continue to grow.

Chapter 13 may provide relief some parties need

Finding the right debt relief option can depend on a number of factors. Louisiana residents considering the possibilities of reducing or eliminating their debt will undoubtedly want to find the right path for their cases. For some, Chapter 13 bankruptcy may be able to provide them with the relief they need.

Chapter 13 bankruptcy involves the creation of a repayment plan that would allow a qualifying person to pay off remaining debts over time. The court must approve the payment plan before it can move forward. The plan must also include who is acting as the trustee on the case, how the trustee will be paid each month to pay off debts, how the trustee will obtain the money, and the length of the plan. Most Chapter 13 cases last three to five years.

IT company files for Chapter 11 to address $1.3 billion debt

Running a business is no easy task. Unfortunately, some companies in Louisiana and around the country may struggle more than others or find themselves suddenly facing insurmountable financial issues. Though it can be immensely challenging to find ways to address outstanding business debt in effective ways, Chapter 11 bankruptcy can often help struggling companies find viable solutions.

Sungard Availability Services, an IT production and recovery company, recently made plans to file for Chapter 11 bankruptcy after accumulating a considerable number of liabilities. According to reports, the company owes approximately $1.3 billion to various creditors, and the hope is that the bankruptcy process will allow the company to lower its debt by over two-thirds. It was noted that 75 percent of the company's secured lenders had already indicated that they would agree to the bankruptcy plan.

Credit can be rebuilt after finding debt relief with bankruptcy

Handling money issues in an effective manner can mean taking different actions depending on the specific details of a person's finances. In some cases, Louisiana residents may need major debt relief but fear the repercussions of filing for bankruptcy. Fortunately, after successfully completing the process, individuals can take many actions to help themselves get back on track.

One of the biggest factors in helping oneself rebuild credit is to make sure that every payment is made on time. If a person does not keep up with making timely payments, his or her credit score will only fall further. In cases where an individual may have trouble remembering to make payments before or on the applicable due dates, he or she may want to set up automatic payments or set a reminder ahead of time.

How to manage your finances during a time of unemployment

A job loss is extremely frustrating on many levels, as it has the potential to cause financial stress. While there's no simple way to deal with a period of unemployment, there are steps you can take to better manage your finances.

Upon losing your job, turn your immediate attention to any financial changes you can make for the better. Here are five things you can do to better manage your finances during a time of unemployment:

  • Review everything: From the money you have in the bank to your monthly obligations, review everything with the idea of making some changes for the better. For example, this review may help you pinpoint expenses you can cut out of your life until you land another job.
  • Create a budget: With money tight, you need a budget to guide you. Start by understanding how much money you have to make ends meet for the time being. From there, consider all sources of income, such as unemployment payments, along with your monthly bills.
  • Make a list of your wants and needs: There are things you need in life, such as food and shelter, along with things you want. It's critical to first address your needs, and then move onto any wants that make sense.
  • Don't add more debt: When money is tight, it's easy to get into the habit of relying on credit cards and other forms of loans. This may provide some relief upfront, but it will work against you in the long run.
  • Don't dip into your retirement accounts: Unless this is your last resort, you should avoid it at all costs. It sounds like a good idea while unemployed, but it will come back to harm you when you finally want to retire.

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Richoux Law Firm, L.L.C.
110 E. Kaliste Saloom Road
Suite 205
Lafayette, LA 70508

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Phone: 337-205-7049
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