Best Bankruptcy Lawyers in Louisiana

About Bankruptcy Law in Louisiana, United States

Bankruptcy law in Louisiana is based on federal bankruptcy laws, but certain aspects are influenced by state-specific rules and exemptions. Bankruptcy is a legal process that allows individuals and businesses struggling with debt to either eliminate or repay their debts under the protection of the court. It aims to give honest debtors a fresh financial start while ensuring fair treatment for creditors. In Louisiana, as in the rest of the United States, bankruptcy cases are filed in federal bankruptcy courts, and the process is governed by the United States Bankruptcy Code. Louisiana has its own regulations regarding what assets you can keep, known as exemptions, which are especially important for residents considering bankruptcy.

Why You May Need a Lawyer

Filing for bankruptcy can be complex, especially when your property, income, or business interests are at stake. You may need a lawyer if:

• You are facing foreclosure, repossession, or wage garnishment due to unpaid debts.
• You are overwhelmed by credit card bills, medical debts, or personal loans you cannot repay.
• You own a business that is in financial trouble and are unsure whether to file personal or business bankruptcy.
• You need help understanding the differences between Chapter 7, Chapter 13, and Chapter 11 bankruptcy and which is best for your situation.
• You are worried about losing your home, car, or other vital assets.
• Your debt includes recent taxes, student loans, or child support, which may not be dischargeable.
• You need guidance on the paperwork and documentation required to file accurately and avoid delays or dismissal.

Local Laws Overview

In Louisiana, bankruptcy cases are filed in one of the state’s three federal district courts: Eastern, Middle, or Western Districts. Louisiana follows federal bankruptcy law but has its own set of exemption rules that determine what property you can keep. For example, instead of federal exemptions, Louisiana law requires residents to use the state’s specific exemptions. Key aspects include:

• Louisiana’s homestead exemption protects up to $35,000 of equity in your primary residence.
• Certain personal property such as household goods, a vehicle up to a certain value, tools of trade, and some retirement benefits may also be protected.
• Married couples filing jointly may be able to double some exemptions.
• Some debts, like most taxes, student loans, and domestic support obligations, are not dischargeable unless specific requirements are met.
• Louisiana is a community property state, so if you are married, both spouses’ assets and debts may be affected by the bankruptcy filing.

Frequently Asked Questions

What types of bankruptcy are available in Louisiana?

The most common types for individuals are Chapter 7 (liquidation) and Chapter 13 (reorganization). Chapter 11 is usually used for businesses or individuals with very large debts.

Will I lose my house or car if I file for bankruptcy?

In many cases, you can keep your house and car if you are current on payments and your equity does not exceed the state exemption limits. An attorney can help you understand what assets you can protect.

Can both spouses file for bankruptcy together?

Yes, married couples in Louisiana can file jointly or separately. Filing jointly is common when both spouses have significant debt.

How does filing bankruptcy affect my credit score?

Bankruptcy will generally lower your credit score initially and will appear on your credit report for up to 10 years. However, many people see their credit start to improve after completing the process, especially if they manage debts responsibly.

What debts can be eliminated in bankruptcy?

Most unsecured debts such as credit cards, personal loans, and medical bills can be discharged. Some debts, like secured loans, tax debts, student loans, and child support, are usually not dischargeable.

How long does the bankruptcy process take in Louisiana?

A typical Chapter 7 bankruptcy can take about 4 to 6 months, while Chapter 13 bankruptcy involves a payment plan that lasts 3 to 5 years.

What are Louisiana’s main bankruptcy exemptions?

Key exemptions include a homestead exemption up to $35,000, a vehicle exemption, exemptions for retirement accounts, and certain personal property. Exemption details and amounts can change, so consult a lawyer for up-to-date information.

Will bankruptcy stop foreclosure or repossession?

Filing for bankruptcy triggers an automatic stay, which temporarily halts foreclosure, repossession, and most other collection activities. However, you may need to bring payments current or negotiate with creditors to keep these assets long-term.

Can I choose between state and federal exemptions?

No, Louisiana law requires you to use state exemptions if you are a resident. Federal exemptions are not available.

Do I need an attorney to file for bankruptcy?

While it is possible to file without an attorney, bankruptcy law is complex and filing incorrectly can result in lost assets or dismissed cases. Legal advice is highly recommended.

Additional Resources

If you are considering bankruptcy in Louisiana, the following resources can be helpful:

• The United States Bankruptcy Court for the Eastern, Middle, and Western Districts of Louisiana - provides court locations, forms, and filing information.
• The Louisiana State Bar Association - offers lawyer referral services and information about attorneys specializing in bankruptcy.
• Legal Services of Louisiana - provides free or low-cost legal help to qualifying individuals.
• Consumer Credit Counseling Services - offers budgeting advice and debt management tools.
• Louisiana Attorney General’s Consumer Protection Division - for general help and information on dealing with debt collectors.

Next Steps

If you believe bankruptcy may be right for you, consider the following steps:

• Gather information about your debts, assets, income, and expenses.
• Research bankruptcy attorneys in your area or contact the Louisiana State Bar Association for recommendations.
• Schedule a consultation with a qualified bankruptcy attorney to discuss your options and make a plan.
• Learn about pre-bankruptcy credit counseling, which is required before filing.
• Follow your attorney’s advice carefully to ensure your case goes smoothly and you receive the maximum benefit available to you under Louisiana law.