Lafayette Bankruptcy Law Blog

In best case scenarios, businesses thrive, gain financial success and have loyal clients and customers. While many Louisiana company owners certainly want to end up in this type of scenario, that is not always the case. Some businesses may face financial struggles and other hardships that result in their needing to file for Chapter 11 bankruptcy for help with those difficulties.

It was recently reported that celebrity chef Mike Isabella has recently filed for this type of bankruptcy protection. According to reports, his company, which includes multiple restaurants in various locations, has seen financial struggles recently, especially after a sexual harassment lawsuit was filed against the company. The company is also facing lawsuits from landlords who presumably held the locations of some of his restaurants.

No Louisiana resident wants to wind up in a situation where the loss of a home is a real possibility. However, many people face foreclosure, and it can wreak havoc on the stability of their livelihood. They may also have to contend with a great deal of mental distress as they wonder what they can do to stop the proceedings against them. In many cases, Chapter 13 bankruptcy may be able to help.

With Chapter 13, a person needs to have a steady income that would allow him or her to repay debts over time with the help of a repayment plan. When it comes to foreclosure and bankruptcy, the filing of a bankruptcy petition enacts an automatic stay. This means that creditors must stop all collection actions against the person filing, which also means foreclosure proceedings must stop.

Making the decision to file for bankruptcy is a considerable step to take. While this debt relief option can be immensely beneficial for those struggling financially, it can also be a complex process to complete. Therefore, Louisiana residents wanting to follow this path may want to watch out for common mistakes.

One mistake that many people fall victim to is waiting too long to file. They may think that putting off bankruptcy will give them the opportunity to address their financial issues on their own, but typically, individuals will not have a sudden event that allows them to immensely improve their financial situations without help. Additionally, waiting to file may only mean that collectors continue calling and that wages may still be garnished. Filing sooner may also provide the chance to work on improving credit more quickly.

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.