If you’re grappling with overwhelming credit card debt in Louisiana, bankruptcy may provide a viable solution. But how does bankruptcy affect your credit card debt? Let’s delve into the details.
When you file for bankruptcy, most types of credit card debt can be discharged, meaning you are no longer legally obligated to pay them. This is applicable in both Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 bankruptcy, your non‑exempt assets are liquidated to repay your debts, and any remaining credit card debt is typically discharged. In Chapter 13 bankruptcy, you enter into a repayment plan to pay back a portion of your debts over a period of 3 to 5 years, and any remaining credit card debt may be discharged at the end of your repayment plan.
At Simon Fitzgerald LLC, we understand that dealing with overwhelming credit card debt can be stressful. Our team of experienced bankruptcy attorneys is here to guide you through the bankruptcy process, helping you understand how it affects your credit card debt and assist you in making informed decisions about your financial future.
What circumstances may prevent me from discharging credit card debt in a bankruptcy in Louisiana?
While bankruptcy offers debt relief, there are certain circumstances that may prevent the discharge of credit card debt in Louisiana. The bankruptcy court examines your case to determine if any of the following apply:
- Fraudulent activity: If you incurred credit card debt through fraudulent means, such as making false statements or using someone else’s identity, it may be deemed non‑dischargeable.
- Recent luxury purchases: If you made substantial purchases of luxury items shortly before filing for bankruptcy, these charges may be considered non‑dischargeable. The court looks for evidence of intent to abuse the bankruptcy process.
- Cash advances: Cash advances obtained within a specified period before filing for bankruptcy may also be non‑dischargeable. The court examines these transactions to prevent individuals from taking advantage of the system.
It’s crucial to consult with our experienced bankruptcy attorneys at Simon Fitzgerald LLC to assess your unique circumstances. We will analyze your case and guide you through the process, helping you understand if any exceptions or limitations apply to your credit card debt discharge ability.
How does the bankruptcy court determine if credit card debt is dischargeable in Louisiana?
The bankruptcy court in Louisiana follows federal bankruptcy laws in determining the dischargeability of credit card debt. They consider various factors, including:
- Nature of the debt: Credit card debt is generally considered unsecured debt, making it eligible for discharge in bankruptcy. However, the court examines the circumstances surrounding the debt to ensure compliance with the law.
- Financial hardship: The court assesses your financial situation, income, expenses, and assets to determine if repaying the credit card debt would impose an undue hardship on you.
- Non‑exempt assets: If you have non‑exempt assets that can be liquidated to repay creditors, the court may require you to use those assets before discharging the credit card debt.
Our dedicated team at Simon Fitzgerald LLC will provide you with comprehensive guidance, evaluating the dischargeability of your credit card debt under Louisiana bankruptcy laws. We will advocate for your best interests, ensuring you understand your options and supporting you throughout the bankruptcy process.
For more information, you can visit: U.S. Courts ‑ Discharge in Bankruptcy
Struggling to manage overwhelming credit card debt? Chapter 7 and Chapter 13 can seem complex, but our free guide makes it simple.. Stay updated with the latest information by signing up for our Bankruptcy Newsletter. If you’re considering bankruptcy, get a personalized look at your options with our assessment tool.