For the last several years, hot-air balloon businesses in southern California's Coachella Valley have undergone difficult times. A lawsuit filed by the owners of an olive ranch has kept the balloons grounded, resulting in several balloon operators going out of business and another filing for bankruptcy protection.

The owners of the olive ranch alleged in a lawsuit that the balloons were flying too close to the ranch, invading their privacy and threatening their safety. This resulted in three years during which the balloon operators' income was seriously curtailed. While individuals and entrepreneurs can plan for many eventualities, in some cases, forces beyond their control lead to financial hardship. Fortunately, bankruptcy protections are often available to these individuals to ensure an orderly path back to financial viability.

Among other advantages, bankruptcy offers an automatic stay against creditor lawsuits. While the bankruptcy matter is proceeding, creditors can no longer attempt to collect debts or harass you. In some cases, you may be able to continue the operation of your business without liquidation. A chapter 13 bankruptcy allows for a reorganization of your business debts as part of an organized plan to pay back your creditors.

In this hot-air balloon dispute, the balloonists finally had the lawsuit from the olive ranchers dismissed and will be able to resume flights over the Coachella Valley this fall. While the future of the balloonists now looks positive, a significant amount of financial damage was done to their businesses during the three years of litigation. Local news reports indicate that the balloon operators are considering filing a lawsuit in an attempt to recover some of their lost income.

Source: Southern California Public Radio, "After years of financial losses, balloonists ponder their own fight," Steven Cuaves, Aug. 22, 2011