You are up against debt that has become hard to manage, and filing for bankruptcy in Louisiana may be something you are considering. You are trying to protect your home or your vehicle while also dealing with collection calls or a lawsuit.
This process can be confusing when you do not know where to begin or what steps come next. Simon Fitzgerald LLC helps individuals and businesses across Louisiana with bankruptcy filings and explains how the process works from start to finish.
Call our office today at 318-868-2600 to review your debts and explain how bankruptcy may apply to your situation.
What Filing for Bankruptcy Means Under Louisiana and Federal Law
When you file for bankruptcy, your case is handled under federal law. That means the rules come from the U.S. Bankruptcy Code, not state law. Your case is filed in a federal bankruptcy court, and a judge reviews your financial situation and the debts you are asking to address. Your bankruptcy attorney in Louisiana will help you prepare the filing so it meets the court’s requirements.
One of the first things that happens after you file is something called the automatic stay. Under 11 U.S.C. § 362, collection activity must stop once your case is filed. That includes collection calls, lawsuits, and wage garnishments. The goal of the process is to give you relief from those debts, either by eliminating certain balances or setting up a structured way to repay them.
The Types of Bankruptcy Available in Louisiana
There is more than one way to file for bankruptcy, and each option works differently. The right choice depends on your income, your assets, and what you are trying to protect. Your Louisiana Chapter 7 and Chapter 13 lawyer will look at your financial situation and explain which option is the best fit.
Chapter 7 Bankruptcy
Chapter 7 is often called liquidation bankruptcy. It allows certain debts to be discharged without setting up a repayment plan. In this type of case, the court looks at what you own and whether any property can be used to repay creditors. Many people can keep essential property through exemptions, but that depends on what you have and how it is classified.
Chapter 13 Bankruptcy
Chapter 13 is based on a repayment plan. Instead of eliminating debts right away, you make payments over time through a court-approved plan. That plan usually lasts three to five years and is based on your income and expenses. This option is often used when you need time to catch up on missed payments, such as a mortgage or vehicle loan.
Chapter 11 and Chapter 12 Bankruptcy
Chapters 11 and 12 are used in more specific situations. Chapter 11 is often used by businesses or individuals with more complex finances. Chapter 12 is designed for family farmers and certain fishing operations. These filings involve structured plans that address how debts will be repaid over time.
How to Know If You Qualify for Bankruptcy in Louisiana
When you ask, “Do I qualify for bankruptcy in LA?” the answer usually starts with your income and your debt. The court looks at how much you earn and how that compares to the median income in Louisiana. If your income is below that level, you may qualify for Chapter 7. If it is higher, we will look more closely at your expenses and debts to determine which options are still available.
This is where something called the means test comes in. It is a calculation that looks at your income, your living expenses, and what is left over at the end of the month. That number helps determine whether you can file under Chapter 7 or whether a Chapter 13 repayment plan makes more sense.
Step One: Reviewing Your Financial Situation
The first step is looking at your full financial picture. That means going through what you earn each month and what you owe. It also means listing what you own, such as your home or your vehicle. This information shows where you stand before anything is filed.
We also look at how your debt is structured. That includes credit card balances and medical bills. It also includes any past-due loans. Some debts can be discharged, while others may still need to be paid. Having everything laid out in one place helps determine which type of bankruptcy fits your situation.
Step Two: Choosing the Right Type of Bankruptcy
The next step is deciding which type of bankruptcy fits your situation. For most people, that means looking at Chapter 7 or Chapter 13. Chapter 7 is used when you are trying to clear certain debts without setting up a payment plan. Chapter 13 is used when you need time to catch up on missed payments through a structured plan.
That decision depends on your income and what you are trying to protect. If you are behind on a mortgage or car loan, Chapter 13 may allow you to catch up over time. If your income is lower and you do not have past-due secured debts, Chapter 7 may be available. Looking at both options side by side helps determine which one makes sense.
Step Three: Preparing and Filing the Bankruptcy Petition
This step is when everything is filed with the court. You will need to provide detailed information about your income and your debts. You will also need to list your assets and your monthly expenses. These are the steps to file bankruptcy in Louisiana, and the court expects that information to be complete and accurate.
The petition is filed with the federal bankruptcy court. Once it is submitted, it becomes the official record of your financial situation. Any mistakes or missing information can create delays or lead to problems with your case. That is why this step is handled carefully before anything is filed.
Where Bankruptcy Cases Are Filed in Louisiana
Your bankruptcy case is filed in federal court, not a state court. In Louisiana, that usually means either the United States Bankruptcy Court for the Western District of Louisiana or the United States Bankruptcy Court for the Eastern District of Louisiana. The court that handles your case depends on where you live or where your business is located.
If you live in one part of the state, your case will be assigned to the district that covers that area. These courts handle filings for individuals and businesses across Louisiana, including in Baton Rouge and Shreveport. Once your case is filed, it stays within that court for the entire process.
What Happens After You File for Bankruptcy
Once you file, the automatic stay goes into effect right away. That means collection calls stop and lawsuits are paused under federal law. Creditors are not allowed to contact you about those debts while your case is open. This is one of the first steps in the bankruptcy process in Louisiana and it takes effect as soon as your case is filed.
After that, a trustee is assigned to your case. The trustee reviews your paperwork and looks at your financial information to make sure everything is accurate. You will also attend a required hearing called the meeting of creditors, where you answer questions about your filing. While the process follows federal law, the steps can look slightly different depending on where your case is filed.
What Debts Can and Cannot Be Discharged
One of the main questions in any bankruptcy case is which debts can be cleared and which ones will remain. When you are filing bankruptcy for individuals or businesses in Louisiana, the answer depends on the type of debt and the chapter you file under. The court looks at each category of debt separately.
Debts That May Be Discharged
Some debts can be eliminated through bankruptcy. These usually include credit card balances, medical bills, and certain personal loans. Under 11 U.S.C. § 727, these types of unsecured debts may be discharged in a Chapter 7 case if they meet the requirements. Once discharged, you are no longer responsible for paying those balances.
Debts That Typically Cannot Be Discharged
Other debts are not discharged in most cases. That can include recent tax obligations and student loans. It can also include child support or alimony. These debts remain in place even after your bankruptcy case is completed, and you are typically still required to pay them.
Timing Matters When Filing for Bankruptcy
When you file can change how your case works. If you wait too long, you may lose assets that could have been protected if the case were filed sooner. For example, money taken through wage garnishment or funds withdrawn from your bank account may not be recoverable if the filing happens after those actions are completed.
According to the American Bankruptcy Institute, hundreds of thousands of bankruptcy cases are filed in the United States each year. Many of those cases involve financial pressure from medical bills or loss of income. Filing sooner can stop collection activity before it escalates. Filing later may limit what you can protect and what creditors can recover.
How Your Louisiana Bankruptcy Lawyer Can Help
Bankruptcy involves decisions that affect your property and your income. It also affects how your debts are handled going forward. You are working with court requirements and financial records that need to be accurate. Your Louisiana bankruptcy lawyer works with you to handle those steps and make sure your case is prepared the right way. Here is how we may be able to help:
- Going through your income and your debt to understand where you stand
- Checking whether you meet the requirements for Chapter 7 or Chapter 13
- Preparing the documents that must be filed with the court
- Representing you at required hearings and answering questions
- Looking at what property can be protected under the law
Our approach depends on your financial situation and the type of case you file. Simon Fitzgerald LLC assists clients throughout Louisiana with bankruptcy filings and provides Louisiana bankruptcy filing assistance based on what your records show.
What Can Affect the Outcome of a Bankruptcy Case
The outcome of your case depends on the information that we submit to the court and how your situation fits under the law. Small details can change how your case unfolds. That is why everything needs to be reviewed carefully before anything is filed. Here are some of the main factors that can affect your case:
- Whether your financial information is complete and accurate
- Which chapter of bankruptcy you file under
- How much income you earn each month
- What property you own and how it is listed
- Whether there are debts that cannot be discharged
Each of these factors is reviewed by the court and the trustee. They use that information to decide how your case will proceed and what the final result will be.
FAQ About Filing for Bankruptcy in LA
How Long Does Bankruptcy Take?
The timeline depends on the chapter you file under. A Chapter 7 case often takes a few months, while a Chapter 13 case can last several years because it includes a repayment plan.
Will Filing for Bankruptcy Stop Collection Calls?
Filing triggers the automatic stay, which stops most collection activity right away. That includes collection calls and active lawsuits related to your debts.
Can You Keep Your Property After Filing for Bankruptcy?
In many cases, you can keep certain property through exemptions allowed under the law. What you keep depends on what you own and how it is classified in your filing.
How Does Bankruptcy Affect Credit?
A bankruptcy filing will appear on your credit report and can lower your score. Over time, you can begin rebuilding your credit by making payments on time on new or remaining accounts.
Take the First Step Toward Filing for Bankruptcy in Louisiana
If you are trying to figure out how to file for bankruptcy in LA, the first step is understanding your financial situation. Your bankruptcy lawyer in Louisiana can review your income and your debts to determine how your case should be filed.
Simon Fitzgerald LLC works with individuals and businesses across the state and knows how these cases are handled in Louisiana courts. Contact us to review your finances and decide how you want to move forward with your filing.
