Lafayette Bankruptcy Law Blog

With online shopping offering so much ease and convenience, more and more physical retail stores in Louisiana and elsewhere find themselves struggling. In fact, numerous stores have closed in recent years due to being unable to recover. Recent reports indicate that yet another retail chain is possibly looking to file Chapter 11 bankruptcy is efforts to address its current struggles.

According to reports, women's clothing retailer Forever 21 is considering filing for Chapter 11 bankruptcy protection. The company has 815 stores across the country, and it is possible that at least a portion of those stores will close in the event of a bankruptcy filing. It is common for store closings to take place when companies file for this protection as they work to make their business smaller and more manageable.

With so many benefits, many people turn to Chapter 7 bankruptcy if their financial situation takes a turn for the worst. While it's not the right solution to every money-related problem, it may be something you want to strongly consider.

Before you decide in favor of Chapter 7 bankruptcy, it's critical to understand the benefits. Here are four of the best:

• A fresh start: Once your Chapter 7 bankruptcy case is in the past, you'll feel like a new man or woman. A fresh start allows you to make better financial decisions the second time around, thus putting you in position to reach all of your goals.
• No repayment plan: While there are times when Chapter 13 bankruptcy makes sense, this calls for a repayment plan. This results in most of your disposable income being sent to creditors. Chapter 7 bankruptcy does not have a repayment plan component, thus allowing you to keep the money you earn.
• It's a fast process: As long as you prepare accordingly and follow the steps outlined by the court, a Chapter 7 bankruptcy case typically concludes within six months of filing. Even better is the fact that the court will issue a discharge order within two to three months.
• No debt limitation: One of the primary concerns of Chapter 13 bankruptcy is the limitation on the amount of debt you can have. With Chapter 7 bankruptcy, there are no rules that impose a limit on how much debt you can have to file.

Most Louisiana residents do not picture themselves in situations where they are overwhelmed due to financial issues. In fact, it is typically the hope that individuals will be financially stable. Of course, financial stability does not come to everyone, and debt relief is often needed by many.

One of the most common forms of debt relief is bankruptcy. This method can help qualifying individuals or companies address substantial debt that may be holding them back in various ways. When parties begin considering bankruptcy as a way to handle their financial issues, they are already taking a step in the right direction by taking responsibility for their problems and seeking a solution.

Companies could face financial setbacks for any number of reasons. While many businesses are able to bounce back from a setback, others are not so fortunate. As a result, they may file for Chapter 11 bankruptcy assistance in efforts to keep their companies operational. Unfortunately, additional issues could lead to filing for bankruptcy again.

Louisiana readers may be interested in an oil refinery that filed for Chapter 11 bankruptcy for the second time in less than two years. According to reports, this second filing came after an explosion at the refinery resulted in the facility having to close. Significant property damage resulted from the explosion and fire, which made it more difficult to liquidate assets. The report stated that the initial plan was to sell the refinery, but the company filed bankruptcy instead.