If your debt is overwhelming and you are behind on your payments, you may be considering bankruptcy. Unfortunately, bankruptcy laws in Louisiana are not always straightforward. Plus, not everybody qualifies to file for bankruptcy. On the other hand, once you file for bankruptcy, your creditors have to stop harassing you. Instead, they will be talking to your lawyer.
Meeting the Requirements
In order to file for Chapter 7 bankruptcy, you have to meet the means test. For this purpose, you have to calculate your annual earnings. Only if they fall below the median income of your state can, you file for Chapter 7. Otherwise, you may have to consider Chapter 13. For this type of bankruptcy, you have to submit a payment plan which can last anywhere from 3 to 5 years.
Other bankruptcy requirements include having to attend credit counseling before filing for bankruptcy. You will also have to attend a financial management course after filing for bankruptcy. This is actually a good requirement, because the aim is to avoid another bankruptcy in the future.
When filing for bankruptcy, most people are concerned about their personal property. Will they have to lose everything? Actually, a lot of personal property is exempt. Although Louisiana does not allow federal exemptions, state law still has provisions for debtors to keep a lot of their personal property, such as dishes, bedding, and family pictures. Other exceptions include insurance proceeds and the property of a minor child. Louisiana also has a homestead exemption.
Filing for Bankruptcy
Filing for bankruptcy can be very overwhelming. Since bankruptcy laws in Louisiana can be quite complicated, you would be well advised to get legal assistance. Each district in Louisiana has its own rules about filing bankruptcy. This means, even the method of filing may be different. Additionally, you have to submit the appropriate filing fee. Otherwise, your application will be denied. If you cannot pay the filing fees, you may be able to ask for a hardship waiver. This waiver has to be included with your other documents at the time of filing in order to be considered.
This is a guest post provided to Mile High Mom for its readers.