Lafayette Bankruptcy Law Blog

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.

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.

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.

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.