How to File for Bankruptcy in Louisiana

Many states have seen their rates of bankruptcy filings increase markedly in the last few years.  Louisiana’s rate has just increased a low 24%, but that does not help those facing that choice today.  It is vital for them to understand the bankruptcy process before they take this difficult step.  One of the most important source of information and advice is a bankruptcy attorney who will stand with the debtor and help them choose the right options for their situation as well as protect their rights through the process.

Finding a Bankruptcy Attorney

There are many bankruptcy attorneys who claim to be experts; however, each consumer must choose carefully and make sure their record backs up that claim.  Local bar associations, trusted legal websites, and word-of-mouth recommendations can help.  Nevertheless, often the best plan is for them to do their own research and personally interview several candidates before deciding on the right one.

Bankruptcy Options

A bankruptcy attorney is the consumer’s best source of advice concerning financial choices for their situation.  There are two common alternatives for individuals and families:

• For those with few assets to lose to liquidation, Chapter 7 may be the best choice, as it results in most unsecured debt being discharged, or erased, at the end of the process
• Those with significant property they don’t want to lose to liquidation and sufficient monthly income to pay some debts, Chapter 13 allows them to reorganize their finances and debts and pay them off at a lower monthly rate over a period of three to five years

Louisiana Exemptions

While Louisiana has a greater percentage of filers choosing Chapter 13 than most states, 65%, there are still thousands who will choose Chapter 7 and hope to protect most, if not all, of their personal property.  There are a number of exemptions they can choose under state law, since federal exemptions are not allowed:

Filing the Petition

All these elements are claimed or reported in the bankruptcy petition filed with the court once the required credit counselling is completed.  The judge then places a temporary stay on all collection processes, while the bankruptcy trustee investigates and executes the bankruptcy.  Once a debtor and their attorney attend a mandatory 341 meeting to answer all questions about the divorce, the petition can generally be granted and the debtor can start fresh rebuilding their economic future.