Best Bankruptcy & Debt Lawyers in Lafayette

About Bankruptcy & Debt Law in Lafayette, United States

This guide is written for people in Lafayette, Louisiana. Bankruptcy and debt law here is a mix of federal rules that apply nationwide and Louisiana-specific rules that affect what property you can protect, how creditors can collect, and where cases are filed. Most consumer bankruptcies are filed under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. Chapter 7 is a faster liquidation process that can eliminate many unsecured debts, while Chapter 13 sets up a 3 to 5 year repayment plan to catch up on secured debts like a mortgage or car loan and address unsecured debts based on income and assets. Because Louisiana is a community property state and has its own exemption laws, outcomes in Lafayette can differ from those in other states.

Bankruptcy cases from Lafayette Parish are filed in the U.S. Bankruptcy Court for the Western District of Louisiana, Lafayette-Opelousas Division, and are governed by federal law, the Federal Rules of Bankruptcy Procedure, and the Western District of Louisiana Local Bankruptcy Rules. Before filing, most individuals must complete a credit counseling course approved by the U.S. Trustee Program, and after filing must complete a debtor education course to receive a discharge.

Why You May Need a Lawyer

You may benefit from a bankruptcy or debt attorney in Lafayette if you are facing foreclosure on a home, vehicle repossession, a wage garnishment, a bank account levy, or a lawsuit from a creditor or debt buyer. A lawyer can evaluate whether Chapter 7 or Chapter 13 is the better fit, how Louisiana exemptions apply to protect your home, car, wages, and personal property, and how community property rules impact a married filer. If you own a small business, have significant tax debt, owe child support or alimony, or recently experienced a job loss, illness, or disaster, experienced counsel can help you navigate complex eligibility rules, negotiate with creditors, and avoid mistakes that could cost property or delay a discharge.

Even outside bankruptcy, a lawyer can defend collection lawsuits in Lafayette City Court or the 15th Judicial District Court, raise statute of limitations defenses under Louisiana law, stop unlawful collection practices, and structure settlements that prevent future garnishments or liens. If you are a homeowner, counsel can explain how Louisiana foreclosure works, whether a bankruptcy automatic stay would help, and what to expect with mortgage forbearance, loan modification, or surrender.

Local Laws Overview

Venue and court: Consumers residing in Lafayette Parish generally file in the U.S. Bankruptcy Court for the Western District of Louisiana, Lafayette-Opelousas Division. Local bankruptcy rules and standing orders in this division set additional procedures and forms beyond the federal rules.

Exemptions: Louisiana has opted out of the federal bankruptcy exemptions, so most filers use Louisiana state exemptions. Louisiana law protects a portion of equity in your primary residence through a homestead exemption, subject to a statutory cap and certain exceptions such as mortgages, taxes, and construction liens. State law also provides exemptions for common personal property categories like household goods, tools of trade, certain insurance and retirement benefits, and a portion of equity in one motor vehicle, each subject to caps and conditions. Federal nonbankruptcy exemptions and federal protections for Social Security, most ERISA-qualified retirement accounts, and certain veterans benefits may also apply. How exemptions apply can be fact specific, and married filers should account for Louisiana community property rules when claiming exemptions.

Community property: Louisiana is a community property state. Community assets and community debts of married couples are treated differently than in most states. Filing by one spouse can affect community property and community creditors. A lawyer can help evaluate whether to file jointly or individually and how to protect separate and community assets.

Wage garnishment and bank levies: Under federal and Louisiana law, most consumer wage garnishments are limited to the lesser of 25 percent of disposable earnings or the federal weekly floor calculation. Certain income like Social Security is generally protected from garnishment, but protection can be lost if funds are mixed with non-exempt funds or moved. Creditors must usually obtain a court judgment before garnishing wages or levying accounts, except for special debts like federal student loans or taxes.

Debt collection practices: The federal Fair Debt Collection Practices Act applies to third-party collectors. Louisiana law also regulates collection agencies and prohibits unfair or deceptive practices. Consumers can demand verification of a debt and dispute inaccurate credit reporting under federal law.

Statutes of limitations under Louisiana law: Many consumer credit card suits involve open accounts, which typically carry a 3-year liberative prescription period. Promissory notes generally have a 5-year period, and some written contracts can have longer periods. The exact clock and whether it was interrupted or restarted can be nuanced, so legal advice is important.

Foreclosure: Louisiana allows an expedited judicial process called executory process when the mortgage contains certain language. This can move faster than ordinary litigation. The state homestead exemption does not prevent foreclosure by a mortgage holder if the loan is in default. Filing bankruptcy generally triggers an automatic stay that can pause a scheduled sale, but deadlines are critical.

Small claims and local courts: Lafayette City Court has a small claims division for lower-dollar disputes, with simplified procedures and lower filing fees. Larger cases are heard in the 15th Judicial District Court. Collection judgments from these courts can lead to garnishments or property seizures handled through the Lafayette Parish Sheriff.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 for someone in Lafayette

Chapter 7 is a liquidation that can discharge many unsecured debts in about 4 to 6 months, subject to eligibility and property exemptions. A trustee can sell non-exempt assets to pay creditors, although many cases are no-asset. Chapter 13 creates a 3 to 5 year plan to repay arrears on secured debts like a mortgage or car and to pay unsecured creditors based on income, expenses, and non-exempt equity. Chapter 13 can be useful to stop foreclosure or repossession and catch up over time.

Will filing bankruptcy stop a foreclosure or wage garnishment in Louisiana

Yes, in most cases the bankruptcy automatic stay takes effect when you file and temporarily stops foreclosure sales, repossessions, garnishments, and most lawsuits. Creditors can seek relief from the stay, and there are exceptions for repeat filings. Timing is critical if a sheriff sale is already scheduled. Speak to a lawyer immediately if a sale date or garnishment is pending.

Do I have to use Louisiana exemptions or can I choose federal exemptions

Louisiana has opted out of the federal bankruptcy exemptions, so most residents use Louisiana state exemptions. Certain federal nonbankruptcy exemptions and federal protections for retirement and benefits still apply. Which exemptions protect your assets will depend on your specific situation, including residency history and property type.

How does Louisiana community property affect a married person filing alone

Community property and community debts are generally shared by spouses. If one spouse files, community assets may be part of the bankruptcy estate, and the discharge can affect community creditors. Deciding whether to file jointly or separately requires an analysis of both spouses income, assets, and debts under Louisiana community property law.

Can I keep my car and my home if I file in Lafayette

Possibly. Whether you can keep a car or home depends on your loan status, equity, and applicable exemptions. If you are current and your equity is within exemption limits, you may keep the property. If you are behind, Chapter 13 may allow you to cure arrears over time. In Chapter 7, if you are behind, a lender can ask to repossess or foreclose despite the bankruptcy unless you bring the loan current or reach another arrangement.

What debts cannot be discharged

Common non-dischargeable debts include most recent income taxes, child support and alimony, many fines and restitution, debts for personal injury caused by intoxicated driving, and most student loans unless you prove undue hardship. Debts obtained by fraud or certain misconduct can also be excepted from discharge by court order.

What is the means test and will I qualify for Chapter 7

The means test compares your household income to Louisiana median figures and then applies allowed expense deductions to gauge ability to pay. If your income is below the median for your household size, you typically pass. If above, you may still qualify after deductions. A lawyer can run an accurate means test using current numbers and local standards.

Will bankruptcy ruin my credit permanently

A Chapter 7 can stay on your credit report for up to 10 years and Chapter 13 for up to 7 years. Many filers start rebuilding credit within months by using secured credit, keeping balances low, and paying all bills on time. The fresh start can improve your debt-to-income ratio and overall financial profile over time.

Do I have to go to court in Lafayette if I file

Most individuals must attend a brief meeting of creditors, called a 341 meeting, typically held by telephone or video or at a local meeting location designated by the Lafayette-Opelousas Division. You usually do not appear before a judge unless there is a dispute or a special motion in your case.

How often can I file bankruptcy again if I filed before

The waiting periods depend on the chapter of your prior case and whether you received a discharge. For example, there is a waiting period between a prior Chapter 7 discharge and a new Chapter 7 discharge, and a different period between a Chapter 7 and a Chapter 13 discharge. A lawyer can review your prior case dates to determine eligibility and strategy.

Additional Resources

U.S. Bankruptcy Court - Western District of Louisiana, Lafayette-Opelousas Division: Handles consumer and business bankruptcy cases arising in Lafayette Parish. Court staff can provide procedural information but not legal advice. Check the court for current filing fees, local forms, and hearing procedures.

Office of the United States Trustee - Region 5: Oversees the administration of bankruptcy cases in Louisiana, including approval of credit counseling and debtor education providers. Use only approved agencies for your required courses.

Lafayette Parish Clerk of Court and Lafayette City Court: Maintain civil case records, including creditor lawsuits, judgments, and garnishment filings. Knowing your case status and deadlines is essential if you are sued.

Lafayette Parish Sheriff - Civil Division: Executes judgments, including wage garnishments, bank levies, and sheriff sales. Contact the civil division if you receive garnishment papers to understand timelines and what to expect.

Louisiana Office of Financial Institutions: Regulates collection agencies and certain lenders operating in the state. Useful for questions about licensing of collectors and state lending rules.

Louisiana Attorney General - Consumer Protection Section: Handles complaints about unfair or deceptive practices, including abusive debt collection and credit repair scams.

Acadiana Legal Service Corporation: Provides free or low-cost legal help to eligible individuals in Lafayette and surrounding parishes for consumer, housing, and bankruptcy-related issues.

Louisiana State Bar Association - Lawyer Referral and Modest Means Programs: Can connect you with local lawyers who handle bankruptcy and debt defense, including options for reduced-fee services.

HUD-approved housing counselors in Louisiana: Offer free or low-cost help with mortgage delinquency, forbearance, and foreclosure prevention that can coordinate with bankruptcy options.

Next Steps

Step 1 - Take stock of your situation: List all debts, creditors, balances, interest rates, lawsuits, garnishments, collateral, and arrears on mortgage or car loans. Gather recent pay stubs, the last two years of tax returns, bank statements, and titles or deeds.

Step 2 - Protect your income and deadlines: If a foreclosure sale, repossession, or garnishment is scheduled, note the exact date. Fast action may be needed to file a case in time to trigger the automatic stay.

Step 3 - Complete required counseling: Before filing, you must complete a credit counseling session from a U.S. Trustee-approved provider and obtain a certificate. After filing, you must complete a debtor education course before discharge.

Step 4 - Consult a Lafayette bankruptcy and debt attorney: Ask about Chapter 7 versus Chapter 13, how Louisiana exemptions will protect your property, community property implications, total costs, payment options, and expected timelines. Bring your documents so the lawyer can run the means test and check for non-exempt equity.

Step 5 - Consider non-bankruptcy options: Explore settlement, payment plans, loan modification, and defense of any pending lawsuit. An attorney can advise whether these options are realistic compared to bankruptcy.

Step 6 - File accurately: If you proceed with bankruptcy, complete all schedules and statements truthfully. Disclose all assets, income, transfers, and expected tax refunds. Errors or omissions can delay or jeopardize your case.

Step 7 - Attend your 341 meeting and follow through: Respond promptly to trustee requests, complete your debtor education, and stay current on any post-filing plan payments or secured loan payments.

Step 8 - Rebuild after discharge: Create a realistic budget, build an emergency fund, monitor your credit reports for accuracy, and use credit carefully to establish positive history.

This guide is for general information only and is not legal advice. Laws and procedures change, and your facts matter. For advice on your specific situation in Lafayette, consult a qualified Louisiana attorney.