Best Bankruptcy Attorneys in Baton Rouge

FAQs

• Where do I file for bankruptcy in Baton Rouge, Louisiana?

  To file your bankruptcy case in Baton Rouge, you must first complete the required bankruptcy forms and then file the documents at the Bankruptcy Court Clerk's office, which is located at 707 Florida Street, Room 119, Baton Rouge, Louisiana 70801.

• Where can I get bankruptcy forms in Baton Rouge, Louisiana?

  You can get official court bankruptcy forms in Baton Rouge on this website: https://www.lawb.uscourts.gov/forms/all-forms. These forms have been approved by the United States Bankruptcy Court for use in the Western District of Louisiana.

• Why do collectors in Baton Rouge still contact you even after you filed for bankruptcy and received an automatic stay?

  In this situation, it can be considered as an innocent mistake if a collector in Baton Rouge still contacts you even if you received an automatic stay after filing for bankruptcy. These type of cases can be pardonable for reasons such as the creditor was not informed that you already filed for bankruptcy. A good approach to prevent this is to immediately inform your collector of your petition via email or paper notice from the court.

• How can you determine if filing for bankruptcy in Baton Rouge is the most suitable choice for you?

  Making the decision to file for bankruptcy in Baton Rouge can be an intimidating one. There are certain situations that can signify that you may need to file for bankruptcy, such as having your home on the verge of foreclosure, paying off debts with other credit cards, being months behind on paying bills, or going through a divorce. Although declaring bankruptcy may seem intimidating, it often offers people a chance for a new beginning.

• Are there any disadvantages to filing a Chapter 7 bankruptcy in Baton Rouge?

  There are several disadvantages to filing for Chapter 7 bankruptcy in Baton Rouge. These include the risk of losing non-exempt property that could be sold by the trustee, the possibility of co-signers on your loans being held liable unless they also seek bankruptcy protection, and the limitation that you can only file a second Chapter 7 case eight years after your initial filing if you received a discharge in the prior case.

• Does a debt repayment plan in Baton Rouge have the ability to erase your credit history?

  No, a Baton Rouge debt repayment plan cannot eliminate your credit history. In accordance with the Fair Credit Reporting Act, a bankruptcy filing can stay on your record for ten years, and any correct information about your accounts may be present on your credit report for up to seven years.

• What are the bankruptcy options available in Baton Rouge?

  In Baton Rouge, you have access to the same bankruptcy options as other cities in Louisiana. Chapter 7 is one of these choices, which is appropriate for people with fewer assets or income. Chapter 13 bankruptcy is an option for people with higher earnings or families who face home foreclosure. Additionally, Chapter 11 bankruptcy is specifically designed for partnerships, corporations, and sole proprietorships.

• What does a bankruptcy attorney do?

  Bankruptcy attorneys help clients understand whether they qualify for bankruptcy and what their best options are. They also prepare and file petitions, answer questions during the proceedings, and educate clients about potential best steps for a positive bankruptcy outcome. Bankruptcy attorneys might also file motions or paperwork if creditors dispute the bankruptcy, or to stop creditors from taking collections actions forbidden by the bankruptcy.

• What happens when you file bankruptcy?

  Bankruptcy is a formal process that individuals, married couples, or businesses can enact when they are no longer able to pay creditors. In a bankruptcy proceeding, filers are allowed to reduce debt to more manageable levels to best pay off money owed.

  Once the bankruptcy process is initiated, debt collectors can no longer seek repayments outside of the arrangements detailed in the bankruptcy settlement. Some forms of bankruptcy result in the liquidation of assets to pay back debts, while others allow filers to retain most of their possessions and investments. Many types of unsecured debt can be managed with bankruptcy filings, but not all.

• Can you file bankruptcy on student loans?

  Under most circumstances, student loans aren't dischargeable and aren't included in bankruptcy proceedings. In rare cases, it may be possible to eliminate student loans through bankruptcy, but only if the courts determine that continuing to pay the loans would impose an undue hardship. Meeting the criteria for undue hardship is challenging, and most bankruptcy filers don't qualify.

• What is bankruptcy fraud?

  Bankruptcy fraud is a blanket term that refers to any kind of dishonest bankruptcy proceeding, which can include:

  • Hiding assets by transferring them to another person or entity
  • Intentionally omitting assets when reporting to the court
  • Destroying or withholding required documents
  • Knowingly making false statements to bankruptcy trustees or creditors

• How long is bankruptcy on public record?

  How long bankruptcy stays on public record depends on the kind of bankruptcy filing in question. Chapter 7 bankruptcy remains on the record for 10 years as there isn't necessarily a repayment component. Chapter 13 bankruptcy remains on the record for seven years as some obligations are repaid following filing based on the terms of a discharge settlement.

• Does bankruptcy clear tax debt?

  Bankruptcy can clear tax debt, depending on the circumstances. Taxes are dischargeable under Chapter 7 bankruptcy, not Chapter 13, and only if the tax debt is:

  • Federal income tax debt related to current properly filed tax returns
  • Honestly incurred with no fraud or evasion
  • At least three years old
  • Assessed at least 240 days before bankruptcy filings

  Existing liens are not eliminated with bankruptcy.

  
  

• Can they take my car in Chapter 7 bankruptcy?

  In many cases, it's possible to keep a vehicle following Chapter 7 bankruptcy. The Chapter 7 Motor Vehicle Exemption allows filers who own their vehicles outright or who are up to date with payments to keep their cars. However, those behind on making car payments are required to arrange a repayment plan. Otherwise, the vehicle may be repossessed as a part of the proceedings.

• How bad is it to file bankruptcy twice?

  Although possible, due to the damaging nature of bankruptcy, filing bankruptcy more than once isn't recommended. Filing multiple times puts a serious burden on one's credit report, making it harder to get a loan, buy a house, buy a car, or even open credit cards.

  Note that filing for bankruptcy isn't something that can be done at a filer's leisure. There are time limits following bankruptcy cases that dictate when it's permissible to file again. For example, after Chapter 7 bankruptcy, filers must wait at least eight years before filing Chapter 7 again or four years before filing Chapter 13.

• Can anyone file bankruptcy?

  Anyone can file bankruptcy, but there are limitations regarding which form of bankruptcy is permissible. Qualifying for Chapter 7 requires a means test that evaluates income, debt levels, and income left over each month after paying basic obligations. Income over the median set by the court and monthly income that allows meaningful payments toward unsecured debt can disqualify filers from Chapter 7, which is generally the preferred form of bankruptcy due to the possibility of a full discharge. Anyone can file Chapter 13 bankruptcy, but the terms are less favorable. In most cases, some debts must be repaid following a successful filing. Chapter 13 is also more likely to result in asset forfeiture.

• How will bankruptcy affect my credit score?

  Bankruptcies are noted on credit reports. How much a bankruptcy might drop a person's credit score depends on how high the score was to begin with, but generally speaking, the hit can be as much as 100 to 200 points. Often scores are already dropping because people filing for bankruptcy may have already missed payments on debts. Chapter 13 bankruptcies are listed on credit reports for seven years from the filing date, while Chapter 7 bankruptcies are listed for 10 years from the filing date. This is because Chapter 13 bankruptcies require at least partial payment of debts owed.

• What are the benefits of filing for bankruptcy?

  Filing a bankruptcy petition causes an automatic stay. This legally stops creditors from taking further action to collect debt, including garnishing wages or foreclosing on property. Going through a bankruptcy successfully means that debts included in the bankruptcy are discharged and don't have to be paid back, except as provided in a Chapter 13 repayment plan. Bankruptcy can help someone recover from financial duress so they can make better decisions and improve financial situations in the future. Disadvantages can include temporary lower credit scores and limitations on spending and financing.

• What's the difference between debt settlement and bankruptcy?

  Debt settlement occurs when people negotiate with individual creditors. The creditor agrees to take a payment that's lower than what someone owes and call the debt “paid in full.” Bankruptcy is a legal process that causes debts to be dismissed after someone proves they don't currently have the means to pay their debts as owed. Typically, someone can't enter into bankruptcy and also settle some debts, because the court would see that as favoring one creditor over another.