Lousiana Bankruptcy Information
A bankruptcy lawyer in Louisiana will be able to help you determine if filing bankruptcy is the best course of action for your family and can answer all of your bankruptcy questions.
Chapter 13 Bankruptcy in Louisiana
If you own a home or property you would like to keep, or you do not qualify to file Chapter 7 Bankruptcy, filing Chapter 13 Bankruptcy may be another option for your family. Chapter 13 Bankruptcy will not be an immediate discharge of your assets but will require you to pay either a portion or all of your debt by creating a three to five year repayment plan. The benefit of filing Chapter 13 in Louisiana is your assets will not be liquidated, and you may be able to develop a more favorable payment schedule.
A Louisiana Bankruptcy Lawyer will file your all the bankruptcy documents and will work with you to complete your bankruptcy repayment plan. After the completion of the plan, which will be three to five years, your qualifying unsecured debts will be discharged.
The Federal Bankruptcy code outlines certain assets or personal property which will be exempt from the bankruptcy process. The goal of the government is to allow individuals filing bankruptcy maintain certain assets. Exemptions are determined at the federal level, but many states have also created their own list of bankruptcy exemptions. Depending on the state where you live, you may be able to choose between the state exemption list or the federal exemption list. Other states will only allow you to choose the state exemption list. In the state of Louisiana you are only allowed to use the Louisiana Bankruptcy Exemption List.
Chapter 7 Bankruptcy in Louisiana
If you have few assets and you qualify to file Chapter 7 Bankruptcy, it is the most popular, least expensive and fastest type of bankruptcy. Filing Chapter 7 Bankruptcy will allow for an immediate discharge of your debts.
The first step in Louisiana chapter 7 bankruptcy is to hire a bankruptcy lawyer who will file your bankruptcy petition and a statement of your financial affairs in the correct Louisiana Bankruptcy Court. These bankruptcy forms will include a list of all your creditors, the amount of debt you owe them, your income, your expenses and all of your property. Most debt collection efforts will be at least delayed through an \"automatic stay\". Debt collection efforts may begin again if a Bankruptcy Judge decides there is \"cause\".
A trustee will be appointed to work with your creditors and he will use the proceeds from the sell of your assets to pay them. Priority creditors will be paid first according to federal bankruptcy law. It will take up to four to six months for your debt to be discharged. Not all unsecured debt will be discharged, but common debt that may be eliminated can include: credit card debt, hospital debt, and unsecured personal loans. Chapter 7 Bankruptcy may be available for an individual, corporation, partnership, and married couple.
In the last four years, it has become more difficult to file Chapter 7 Bankruptcy in Louisiana. The Bankruptcy Abuse Prevention and Consumer Act (BAPCA) was passed in 2005, and required individuals to pass an income test to qualify for Chapter 7 Bankruptcy. The goal of this legislation was to force more individuals to repay at least a portion of their debt by filing Chapter 13 Bankruptcy. The legislation also required individuals to take a credit counseling course prior to filing for personal bankruptcy and complete a financial management course before their debt is dismissed.
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