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Lafayette Bankruptcy Law Blog

Innovative Mattress Solutions files for Chapter 11 bankruptcy

When the competition gets tough, even some businesses that have been thriving can find themselves facing hard times. In some cases, these hard times can result in serious financial issues that need drastic measures to resolve. As a result, some businesses in Louisiana and elsewhere may look into Chapter 11 bankruptcy for assistance.

It was recently reported that Innovative Mattress Solutions has filed for Chapter 11 bankruptcy protection. The mattress retailer has 142 stores under various names, and the retailer recently received backing from Tempur-Sealy International, a prominent mattress manufacturer, for bankruptcy financing. The report notes that the company expanded too quickly while competitors that offer bed-in-a-box options are seeing a considerable amount of success.

Chapter 7 may be able to help those struggling with tax debt

As the tax season gets underway, many Louisiana residents may be thinking about the tax debt they already need to handle. In fact, their tax debt may be so overwhelming that they wonder if there are any major steps they could take to address it. Fortunately, Chapter 7 bankruptcy may be able to help.

Some people may think that discharging tax debt through bankruptcy is not possible, but that is not the case. However, the forgiveness of this type of debt hinges on multiple stipulations. Tax debt is considered a priority debt during bankruptcy, and when filing for Chapter 7, that means that the tax debt will be among the first paid when assets are liquidated. If there are not enough assets to cover the tax debt, it can be discharged if it meets the qualifications.

It's never too early for bankruptcy advice

If your finances have taken a turn for the worse, it's natural to search for any answer that can bring relief to your life. While you may not want to entertain the idea of bankruptcy just yet, it's never too early for advice on this matter.

As you learn more about bankruptcy, you may come to find that it's exactly what you need to get back on track. Even if you don't push forward just yet, the information you collect could come in handy in the future.

Debt relief: Credit can be rebuilt after bankruptcy

Many Louisiana residents worry about the state of their finances. It is also not unusual for people to worry about how certain debt relief options, like bankruptcy, may negatively affect their credit. However, credit can be rebuilt, and bankruptcy often has more benefits than negative repercussions.

The lowering of a credit score is typically the most common worry people have when it comes to bankruptcy. It may be useful to understand that if a person already has multiple negative marks on a credit record -- which is common for people struggling financially -- it is likely that bankruptcy will not lower the score much more. Another worry individuals have is that they will not be able to qualify for loans after bankruptcy, but that is not necessarily the case. Certainly, denials could take place, but some lenders may still approve loans while requiring a larger up-front deposit or applying higher interest rates.

Charitable organization helps with medical debt relief

Suffering from a medical emergency or chronic condition can take its toll in many ways. Louisiana residents' quality of life may suffer, and they will likely also have to contend with seemingly insurmountable medical bills. Often, these expenses can become so difficult to address that parties need some form of debt relief.

It was recently reported that a charitable organization called RIP Medical Debt works to tackle this type of issue. The nonprofit organization uses donations to buy portfolios of outstanding balances related to medical expenses. Though debt collectors also purchase such portfolios, the charitable organization pays off the balances rather than attempting to collect from those who owe. They are then able to inform the individuals that their debt has been paid off.

Children's retailer considering 2nd Chapter 11 filing

Bankruptcy is not just an option for individual people who are struggling financially. Businesses that have fallen on hard financial times also have bankruptcy options, such as Chapter 11. In many cases, this route can help businesses continue operating as they address the issues plaguing their companies.

Louisiana readers may be interested in the financial troubles of children's retailer Gymboree Group Inc. The company has been struggling for some time, and it already filed for Chapter 11 bankruptcy last year. However, reports indicate that the company is contemplating filing again. The company is apparently looking to close most of its 900 stores but is also hoping to keep some open to possibly sell to interested buyers.

Chapter 13 bankruptcy could help parties keep their homes

When dealing with the hardships of debt, Louisiana residents may spend a great deal of their time looking for ways to get out from under that debt. Some options may seem appealing but have questionable reliability. Of course, Chapter 13 bankruptcy offers a legal way to address outstanding debt through repayment plans.

Chapter 13 bankruptcy can benefit those who qualify in a variety of ways. Instead of liquidating assets, individuals work to repay creditors over time. This option is useful for keeping a home in the event that a person has fallen behind on mortgage payments. The repayment plan could help catch up on missed payments and reach a point where the individual could remain current on the loan. This option could also help if one wants to eliminate a second mortgage while struggling with the first mortgage.

Media company files for Chapter 11 due to lien issues, other debt

Economic turns, popularity trends and numerous other factors can impact the financial success of businesses. In some cases, companies may do well for a considerable amount of time, but later find that their numbers are not as good as they used to be. It is not unusual for serious financial hardships to result, and companies may need Chapter 11 bankruptcy help.

Louisiana readers may be interested in a bankruptcy petition that was recently filed by LBI Media Inc. The company is a Spanish-language media company that includes 10 television and 17 radio stations throughout the country. However, the company has been struggling financially, but management had hoped that the business could continue running without having to file for bankruptcy. Nonetheless, the company made the decision to opt for Chapter 11 assistance.

Balance transfers won't address the root cause of financial woes

Some of the steps that consumers take to reduce their debt and improve their financial situation can actually make things worse. Even moves suggested by banks and financial companies can have serious consequences for borrowers.

Credit card balance transfers are a perfect example of a financial tool that can often do more harm than good. In certain circumstances, transferring your credit card balance from one card to another could save you a significant amount of money. You can benefit from lower, promotional rates and free up more available credit.

Generations differ when it comes to prioritizing debt relief

It is common for people in Louisiana and elsewhere to have a considerable amount of debt. Though most people would love to be debt free, this goal is not always easy to achieve. For some parties, debt relief may be a top priority, but reaching other financial goals may be more appealing to others.

It was recently reported that individuals in the millennial generation give paying off debt a lower priority than saving for milestones, like buying a home. A survey indicated that 54 percent of participants in the millennial generation prioritized saving for a major milestone over paying off their outstanding debt. It was also reported that millennials who have debt carry an average of $36,000 per person.

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