Louisiana Bankruptcy

Bankruptcy is a legal process created by Title 11 of the United States Code that gives individuals, businesses, and other entities who cannot repay their debts a structured way to seek relief under federal law.

Although federal law allows one standard set of exemptions, filing for bankruptcy in Louisiana requires debtors to use the state’s exemption scheme. An exemption is the legal provision that allows a debtor to keep some essential assets like a portion of their home equity or other personal property.

How to File Bankruptcy in Louisiana

There are several stages involved in filing for bankruptcy in Louisiana, and they can help the court review your current financial situation and determine how to handle your debt. You may start by gathering documents that show your income, debts, tax history, and recent financial activity so that the court has a complete picture of your circumstances. You are also required to complete a credit counseling course, which shows that you reviewed your financial options and considered possible alternatives before commencing a bankruptcy case.

The second phase is to identify the bankruptcy chapter that applies to your situation. For example, you may consider filing Chapter 7 if you have limited assets and want faster relief from unsecured debts. You will also need to know the Louisiana exemption that allows you to retain some of your property and fill out the petition and schedules that will be filed in court.

When your documents are filed with the Bankruptcy Court, the automatic stay goes into effect and stops most collection activity for a period of time. You then attend the meeting of creditors, at which the trustee reviews your filings and asks you questions about your financial history. Before the case can be closed, you must complete a debtor education course on financial management after bankruptcy. The case is then completed upon the entry of a discharge in a Chapter 7 case or upon completion of all required payments under an approved plan in a Chapter 13 case.

Louisiana Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Louisiana recognizes the same bankruptcy types established under federal law, and the most commonly filed chapters for individuals and businesses are:

Chapter 7

Individuals who have significant debts, own no real estate or have equity in it, and lack sufficient income to cover all their outstanding debts may consider filing Chapter 7 bankruptcy. In this process, the trustee reviews the property, sells any nonexempt assets, and uses the money to pay creditors. After the process is finished, qualifying debts may be discharged, but liens remain in place unless the court removes them during the case.

Chapter 13

A Chapter 13 bankruptcy in Louisiana is a repayment process that helps individuals to manage their debt without losing their property. This enables the debtor to stop foreclosure or repossession of personal property while they repay what they owe over three to five years. The repayment plan must be approved by the court and supervised by a trustee.

Chapter 11

Instead of closing down, businesses in Louisiana may reorganize their debts by filing Chapter 11 bankruptcy. This process gives the business time to stabilize finances and adjust how debts are managed. In certain cases, this type of bankruptcy can also be used by individuals with large debts.

Step-by-Step Checklist for Louisiana Filers

You may use this legal guide to understand your eligibility and the basic requirements for filing bankruptcy in Louisiana. Below is a simple checklist to help you keep track of important deadlines and steps:

• Prepare your financial documents
• Complete a credit counseling course
• Choose the appropriate bankruptcy chapter
• Learn which assets can be kept under Louisiana law
• File your petition and schedules
• Participate in the meeting of creditors
• Complete a debtor education course
• Receive discharge or complete your repayment plan

Louisiana Bankruptcy Courts & Record Access

The United States Bankruptcy Courts in Louisiana are organized into three different judicial districts, namely the Eastern, Middle, and Western Districts. Their addresses and the regions they serve are listed below:

Eastern District

This court is located in New Orleans and majorly serves the parishes in the southwestern part of Louisiana, including New Orleans. The court’s location is in:

Middle District

Situated in Baton Rouge, this court handles cases for a smaller number of parishes in the central-eastern region. The courthouse address is:

Western District

This is the largest federal bankruptcy court in Louisiana that holds sessions in multiple locations, such as in Alexandria, Lafayette, Lake Charles, Monroe, and Shreveport. The main courthouse is situated at:

RECORD ACCESS

The federal judiciary provides electronic access to case and docket information from bankruptcy courts through the Public Access to Court Electronic Records (PACER) system. As another option, you may use the Multi-Court Voice Case Information System by calling 1-866-222-8029 to receive basic case details.