Louisiana Bankruptcy Facts
Are you having a tough time lowering your debts in Louisiana? Are you struggling with late payments and accrued interest that you just can’t pay off? Do you have creditors threatening to seize your property? If so, you are not alone. Thousands of people across the country are struggling with debt, but luckily, there is a way to get rid of it.
Whether you have amassed an unmanageable amount of debt due to medical bills, business expenses, taxes, or even lawsuits, bankruptcy protection may help you get back on your feet and creditors off your back.
What is Bankruptcy?
There are several kinds of chapters you may qualify for in Louisiana, so learning about the pros and cons of each is critical in ensuring your debts are minimized as much as possible. Below are some important facts about the two most popularly filed bankruptcies in Louisiana, but even if these are not well-suited for your financial situation, hiring an attorney will help you explore the rest of your options so you can obtain debt relief quickly and with as little hassle as possible.
Louisiana Chapter 7 Bankruptcy:
This chapter is meant for any debtor who has amassed a significant amount of debt beyond the point that repayment seems like plausible option. Chapter 7 involves liquidating your assets to be used as payment for your debt to creditors. To determine if you are eligible, a means test must be passed in which you show your income for the past six months is below the state median for your household size. However, there are certain assets that are exempt from liquidation so you shouldn’t worry too much about losing you most prized valuables, including your home, certain heirlooms or pension plans. If you are approved, you may actually emerge from bankruptcy protection in just three short months.
Louisiana Chapter 13 Bankruptcy:
This chapter is often called “reorganization bankruptcy” because instead of assets being liquidated to pay off debts, you pay them back yourself (but not necessarily in full) over a period of 3 to 5 years.
Most debtors who have a consistent flow of income are approved for Chapter 13 and those who do not qualify for Chapter 7 may still benefit from this chapter. However, only individuals may file for Chapter 13. This is an especially popular petition because it protects debtors from lenders trying to foreclose on their properties and bides them time to get their debts in order.
Working with an Louisiana Bankruptcy Attorney
Did you know that even the slightest error on a bankruptcy petition can lead you to incur even more debt than you started with? It’s not easy to file for bankruptcy protection, but luckily, you don’t’ have to do it alone. Turn to an Louisiana bankruptcy lawyer on our site today for experienced legal counsel you can trust will deliver the most favorable outcome for your case.
Our featured Louisiana bankruptcy attorneys work diligently to protect your rights and help you reduce or even eliminate your debts as quickly as possible.