Lafayette Bankruptcy Law Blog

Many myths surrounding bankruptcy can make people who need the protection think twice about filing their case. One of the areas that seems to be the source of a lot of untruths or misunderstandings is what type of property you can keep when you go through bankruptcy.

Anyone who is thinking of filing for bankruptcy should find out how it might impact their assets. This can be the key factor that helps them decide if they are going to move forward with the case.

Businesses often face times of struggle. In some cases, business owners and operators may find themselves facing considerable financial difficulties due to a variety of reasons. As a result, they may end up in need of protections in order to keep their doors open, and many companies may choose to utilize Chapter 11 bankruptcy protection.

Louisiana residents may be interested in this type of situation taking place with a company in another state. Reports indicated that the aerospace company is currently involved in a contract dispute and has had to suspend production on certain components that they manufacture due to the dispute. It was unclear whether this issue has caused a considerable amount of financial setbacks for the company or if it has others reasons for wanting to protect business operations as the company contends with the problem.

Starting their own businesses is a dream that many people have. Of course, this dream can hit many bumps along the way, and even if individuals do manage to get their companies off the ground, they may end up facing financial struggles that put their businesses at risk. For many, the way to address this type of situation is Chapter 11 bankruptcy.

Part of the bankruptcy process involves presenting a repayment plan to the court and having it approved in order to move forward with the process. It was recently reported that a repayment plan for a Louisiana restaurant chain was approved by the bankruptcy court. Apparently, the owner of the company had filed for Chapter 11 earlier this year. In total, their outstanding liabilities exceeded $846,000, and approximately $248,000 of that amount was unsecured debt owed to smaller creditors.

Substantial debt can make anyone feel as if there are no options for getting back on financial track. Fortunately, there are debt relief options, like bankruptcy, that interested and qualified Louisiana consumers could take advantage of to help them reduce and potentially eliminate their debts. Whether filing for Chapter 7 or Chapter 13 bankruptcy, understanding specific parts of the process can be useful.

In order to begin the bankruptcy process, individuals will need to file the proper paperwork with the court. Once accepted, a bankruptcy trustee will be assigned to the case, and that trustee will conduct a means test to determine where the individual's income falls and to ensure that the bankruptcy filing is not fraudulent. Overall, the purpose of the means test is to ensure that a person is eligible for bankruptcy.