Bankruptcy is a legal process for an overwhelmed or insolvent debtor who cannot pay his debts so that he will have an opportunity for a fresh start. Bankruptcy laws have different types of bankruptcy. One of the most common is Chapter 7 Bankruptcy where your properties will be liquidated by the bankruptcy trustee to pay off your creditors. Usually, people are forced into bankruptcies and are availed only as a last-resort, but it is not a guarantee that you will not have financial problems and will be out of debt. When you file for bankruptcy, the eliminated debts will vary depending on the types of debt.

Bankruptcy Discharge in Louisiana

A discharged debt grants the debtor bankruptcy protection and debt-relief. When one files for bankruptcy, the court activates an automatic stay which stops harassment from debt collectors and other collection agencies. Bankruptcy also allows protection from foreclosure of property, repossession, and wage garnishment. In summary, your debt problems will be solved and you will not be struggling with debt anymore. However, take note that not every debt is subject to dismissal.

What are the Dischargeable Debts?

 Dischargeable DebtsIn bankruptcy filings of Chapter 7 in Louisiana, the bankruptcy rules state that you must first pass the means test and credit counseling. Once you meet the requirements, you can now proceed to filing of a bankruptcy petition in any bankruptcy court in Louisiana.

The debts that you can wipe out are:

  •         Credit card debt
  •         Medical debt
  •         Consumer-credit
  •         Student loans in case you are suffering undue hardship
  •         Tax debt
  •         Attorney fees

However, fraudulent acquired debts can make your liabilities non-dischargeable. Non-dischargeable debts include:

  •         Alimony
  •         Child support
  •         Student loans
  •         Court fines and criminal penalties
  •         Certain taxes

Only debts prior to filing bankruptcy will be discharged and what you owe in the future will not be dismissed, meaning, you will be liable for those debts.

Grounds for being Denied of Chapter 7 Discharge in Louisiana

To receive discharge in bankruptcy cases using Chapter 7, the debtor must comply with the requirements and rules of the State law. Failure to observe the rules will enable the creditor, United States trustee, or the trustee in bankruptcy to object your discharge. The following acts are grounds for the United States bankruptcy court to deny your petition in bankruptcy:

  •         Failure to submit tax documents
  •         Failure to finish a course in a credit counseling agency
  •         Failure to report lost assets
  •         Hiding or transferring property from creditors
  •         Hiding or destroying records or books
  •         Committing perjury or bankruptcy fraud
  •         Violation of court-order

Are you Thinking of Filing a Bankruptcy Case?

Federal Bankruptcy grants anyone the right to declare bankruptcy and proceed to filing bankruptcy on their own without a bankruptcy lawyer. However, you will be responsible for fully understanding everything related to the law. Contact our Monroe bankruptcy attorneys at Orum Young Law to help you according to your needs. If you have debt problems and are considering bankruptcy but uncertain of bankruptcy forms available to you, our bankruptcy lawyers can help you. Our bankruptcy law firm deals with debt settlement, bankruptcy exemptions, mortgage payments, insolvencies, debt management, to mention a few.  Call us now for free legal advice!