Chapter 7 in Louisiana - "Fresh Start" Bankruptcy
Baton Rouge Bankruptcy Lawyers
Known as a "Fresh Start" bankruptcy, Chapter 7 bankruptcy allows a person to eliminate most or all of his or her debt, such as medical bills, personal loans and most credit card charges, while being allowed to keep certain property (assets which do not exceed certain limits called "exemptions").
In most chapter 7 cases, all of an individual's property will be exempt (meaning the asset will remain his or her property). However, property which is not exempt is sold, with the money distributed to the creditors.
In many cases, an individual may keep their home or car (secured debt), provided that they continue to make current payments and are up to date on the loan.
Chapter 7 does not eliminate:
- Student loans, except extreme hardship cases
- Debts for most taxes
- Debts for alimony, maintenance or support
- Debts for fines, penalties or criminal restitution
- Debts for personal injuries caused by driving intoxicated
Chapter 7 is the most commonly filed bankruptcy and can allow for a new start. More and more Americans find themselves struggling with debt they cannot control. Chapter 7 bankruptcy allows for their debt to be discharged and lets them get a hold of their financial situation with a fresh start.
Per New Bankruptcy Laws (Chapter 7 Cases in Louisiana)
- Must get credit counseling before filing.
- Must get debtor education after filing.
- Must supply PayStubs and/or income verification up to 6 months prior to filing.
- Must provide tax returns filed for the past 2 years.
- If own secured property, must file with the court within 30 days, a statement of intention regarding re-affirming the secured debt or not. If the debtor chooses not to re-affirm the debt within 45 days of filing, then the automatic stay is terminated.
- Must pass Means Test.
- Cases are now subject to random US Trustee Audit.
- There is now an 8 year time limit after filing a prior chapter 7 in order to file a current one & there is now a 4 year time limit after filing a prior chapter 13 to file a current chapter 7.
For a Free Consultation, please call today at 225.346.1600 to speak with an attorney or click here to contact by email.
The Baton Rouge accident attorneys at Herpin & deGeneres, LLC handle auto accident cases, slip and fall cases, and bankruptcy filings in Baton Rouge, Denham Springs, Gonzales, and throughout Louisiana. Call (225) 346-1600 or click here for a free consultation with an experienced Baton Rouge auto accident attorney.
The above is not legal advice. That can only come from a qualified attorney who is familiar with all the facts and circumstances of a particular, specific case and the relevant law. See Terms of Use.
