Best Bankruptcy Attorneys in Lafayette

FAQs

• Where do I file for bankruptcy in Lafayette, Louisiana?

  In Lafayette, you file your bankruptcy case with the United States Bankruptcy Court, specifically the Western District of Louisiana. The court is located at the John M. Shaw United States Courthouse, 800 Lafayette Street, Suite 1200, Lafayette, Louisiana 70501. This is the designated court where bankruptcy filings for Lafayette and the surrounding area are processed.

• Where can I get bankruptcy forms in Lafayette, Louisiana?

  Fillable PDF forms for bankruptcy can be obtained at no cost from the official website of the United States Courts. You can access these forms at https://www.uscourts.gov/forms/bankruptcy-forms.

• What happens to home mortgages, car loans, and other secured debt in a Lafayette bankruptcy case?

  In Chapter 7 bankruptcy, if you have a secured debt and do not take additional steps, there is a risk of losing the associated property. While the debt will be discharged, the lender can initiate foreclosure or repossession. However, there are options available to retain your secured property, such as negotiating with the lender to reaffirm the debt or paying the property's current value to the lender in Lafayette.

• How many times can you file for bankruptcy in Lafayette?

  In Lafayette, the 2-4-6-8 rule determines how many times you can file for bankruptcy. If you previously filed for Chapter 13 bankruptcy, you must wait two years to file again, while four years is required if you want to file for Chapter 13 after Chapter 7. For Chapter 7 bankruptcy, the waiting period is six years after filing Chapter 13 and eight years after filing Chapter 7. Filing Chapter 13 immediately after Chapter 7, known as Chapter 20 bankruptcy, extends repayment time but does not discharge debts.

• What is the median income for bankruptcy in Lafayette?

  The median income for bankruptcy in Lafayette depends on household size and means test calculations. To qualify for Chapter 7 bankruptcy, your monthly income over the next 60 months must be below $7,475. If it exceeds $12,475, you are ineligible. If your disposable income falls between $7,475 and $12,475, additional calculations are needed. It is advisable to consult with an attorney to determine your eligibility and the best course of action in filing for bankruptcy.

• What are the costs associated with filing for bankruptcy in Lafayette?

  In Chapter 13 cases, a down payment is required, starting at $750 and depending on the complexity of your case in Lafayette. For Chapter 7 bankruptcy, fees are paid upfront and vary depending on the type of case. A typical non-business Chapter 7 case costs around $1,685, while fees for business Chapter 7 cases are determined by the complexity of the case. You may discuss the specific costs with your attorney.

• What happens to your tax refund in bankruptcy in Lafayette?

  In Chapter 7 bankruptcy, you usually surrender your tax refund for just one year in Lafayette. However, in Chapter 13 bankruptcy, your tax refund is required to be turned over to the trustee throughout your case, which can last three to five years. The trustee will distribute the funds to your creditors. It is important to comply with this requirement and hand over your tax refund to the trustee when you receive it.

• 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.