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Lafayette Bankruptcy Law Blog

Debt relief may help with emotional struggles caused by finances

The old adage says that money cannot buy happiness. However, most people who are financially secure do feel less stress and anxiety in regard to their money-related affairs than those are who not. In fact, significant debt can have serious emotional effects, and Louisiana residents who are struggling may want to look into debt relief options.

Unfortunately, if parties are struggling with their debt, they have a higher chance of suffering from anxiety and depression. In fact, one study showed that individuals in financial distress are twice as likely to face these issues. Those with high debt may worry that they will never get out from under this burden and may also feel hopeless because they are so overwhelmed by their financial problems.

Bankruptcy can take time but is often worth it

Deciding to take any major step to deal with a personal issue can be difficult. Many Louisiana residents may worry that they will make the wrong choice and that their situations will only get worse. However, if individuals are struggling with substantial debt, they may want to consider filing for bankruptcy.

Certainly, it can be hard to move forward with this process, but often, individuals who successfully complete bankruptcy find themselves in better financial situations afterwards. Of course, going through the necessary steps takes time, and even if parties go through Chapter 7 bankruptcy, which is the quickest and most commonly filed type, the process can still take four to six months to finish. As a result, petitioners will want to make sure that they are ready for the length of time it will take.

Common issues lead individuals to need debt relief

Having financial goals is important in life. These goals can help individuals manage their spending and work toward a stable financial future. Unfortunately, even with goals in mind, individuals in Louisiana and across the country can face financial issues and find themselves needing debt relief for many reasons.

It is not unusual for certain common issues to cause bankruptcy filings. For instance, accruing substantial medical debt is one of the leading causes of bankruptcy, making up 62% of personal filings. In the majority of those cases, individuals had health insurance to help cover the costs. Additionally, unexpected job loss can lead to financial issues quickly. If individuals do not receive any type of severance package and do not have enough emergency savings, they could begin struggling soon after being unemployed.

Potential consequences of Chapter 7 bankruptcy

Your finances are in shambles, you're struggling to dig yourself out of debt and you're beginning to wonder if your situation will ever stabilize in the future. When faced with such dire circumstances, it's imperative to keep your options open with the hope of finding a solution sooner rather than later.

With so many benefits of Chapter 7 bankruptcy, it never hurts to learn more about the process, what it entails and how it can change your life for the better.

Many millennials likely hope to find debt relief

Money problems can easily lead to substantial stress. On the outside, some Louisiana residents may appear as if they do not have a care in the world, but really, they may be worried about their financial affairs. In particular, individuals in the millennial generation seem to be experiencing a considerable amount of financial stress and may need to look into debt relief.

A recent survey looked at nearly 2100 individuals, and of those participants, 670 were members of the millennial generation, or those aged 23 to 38. Of those millennials with mortgages, almost 50% indicated that they experience stress about their loans. Additionally, half of the millennials with car loans stated that they feel stressed about those payments. Credit card debt and student loans also contribute to their feelings of stress.

Job loss could present the need for Chapter 7 bankruptcy

Unexpectedly losing one's job can be a devastating event. Unfortunately, layoffs can affect many people without much notice, and the repercussions can be long-lasting. For some Louisiana residents, ending up unemployed could cause financial strain that may later present a need for Chapter 7 bankruptcy.

In particular, it can be difficult to handle credit card debt after job loss. It may be worth the effort for individuals to contact their credit card companies to determine whether they have a hardship program. If they do, cardholders may be able to obtain leniency when it comes to handling their outstanding balances, such as receiving a lower interest rate. In some cases, the company may even lower the monthly minimum payment, which can be useful because individuals can face serious financial setbacks if they are unable to make even just the minimum payment.

Deluxe Entertainment moves forward with Chapter 11 bankruptcy

When businesses face financial difficulties, they often have multiple options to consider when it comes to handling those difficulties. In some cases, attempts to remedy an issue may not go to plan, and the problems could continue. As a result, some businesses may need Chapter 11 assistance.

Louisiana readers may be interested in Deluxe Entertainment's recent Chapter 11 filing. According to reports, the company's bankruptcy petition indicated between $1 billion and $10 billion in debts and assets between $500 million and $1 billion. It also noted that one creditor alone was owed over $9 million. In hopes of rectifying the situation, the company is slated to be passed over to its debt-holders after a debt-for-equity swap agreement was created with some of its lenders. It was not detailed exactly how many lenders the company has.

The debt relief benefits of bankruptcy often worth the effort

Many Louisiana residents reach a point in their lives where they no longer want to struggle financially. For some, remedying this situation may mean finding a better job or better managing spending habits. For others, however, it could mean trying to find the debt relief method that suits their circumstances.

It is common for bankruptcy to be a viable relief option that many struggling individuals opt to use. Of course, some people have negative ideas about bankruptcy, which is often because they do not have the right information. Yes, bankruptcy can lower a person's credit score and put personal information into the public record due to being a legal process, but the process also has many benefits that often outweigh the few cons.

Dangers of payday loans and minimum credit card payments

One of an adult's top priorities is paying their bills. When you have more expenses than you have income, you have to find ways to get things settled. For some people, credit cards and easy-to-obtain loans are the answer. The problem with this is that eventually, those have to be paid. This adds to the monthly bills, which can compound your financial problem.

Before you turn to credit cards or payday loans as a way out of your current financial situation, you need to think about what you're getting into. There are some situations when these are appropriate, but knowledge is power when it comes to these financing options.

Filing a petition among the first steps of Chapter 13 bankruptcy

Facing financial struggles is an issue that no Louisiana resident wants to deal with. Unfortunately, numerous people do end up in difficult positions regarding their financial affairs, even if they generate a steady income. For consumers who do have a regular income but are still facing overwhelming debt, Chapter 13 bankruptcy may be a worthwhile option to consider.

Any bankruptcy process can be challenging to complete. With Chapter 13, qualifying individuals will work to repay their debts over a three to five year period, according to a court-approved plan. The exact length will depend on the amount of income a person generates. The person will need to go through credit counseling before filing for Chapter 13 and then file a petition for bankruptcy with the court. 

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

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