Lafayette Bankruptcy Law Blog

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.

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.

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.

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.