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What Is the Role of Credit Counseling in Louisiana Bankruptcy?

Fri, 13 Mar 2026 18:10:49 GMT

What Is the Role of Credit Counseling in Louisiana Bankruptcy?

Filing for bankruptcy can provide individuals and families with a way to address overwhelming debt and move toward a more stable financial future. However, before someone can file for bankruptcy in Louisiana, federal law requires them to complete credit counseling from an approved agency. Understanding the role of credit counseling and how it fits into the bankruptcy process can help individuals prepare for what lies ahead.

For residents of Mandeville and throughout Louisiana, working with a knowledgeable bankruptcy attorney can help ensure all required steps are completed properly. At De Leo Law Firm, LLC, legal guidance is available to help individuals navigate the bankruptcy process and understand their options.

Why Credit Counseling Is Required Before Filing Bankruptcy

Credit counseling is a mandatory step under federal bankruptcy law. Before filing a bankruptcy petition, individuals must complete a credit counseling session with a government-approved agency. This requirement applies to both Chapter 7 and Chapter 13 bankruptcy cases.

The purpose of credit counseling is to help individuals review their financial situation and determine whether bankruptcy is the most appropriate solution. During the session, a counselor evaluates income, expenses, debts, and assets to help create a clearer picture of the person’s financial condition.

The counseling session typically must be completed within 180 days before filing the bankruptcy case.

What Happens During a Credit Counseling Session

Credit counseling sessions are generally straightforward and designed to provide financial insight rather than judgment. These sessions may be completed online, by phone, or in person.

During the session, the counselor will usually review:

Current income and monthly expenses
Outstanding debts such as credit cards, loans, or medical bills
Financial goals and concerns
Possible alternatives to bankruptcy

The counselor may also create a basic budget and provide suggestions for managing finances more effectively.

Exploring Alternatives to Bankruptcy

One important function of credit counseling is to determine whether bankruptcy is the only option available. In some situations, individuals may benefit from alternatives such as debt management plans or negotiated repayment arrangements.

If a debt management plan is recommended, the counselor may explain how structured repayment could help reduce financial strain. However, participation in these programs is voluntary, and individuals are not required to enroll before filing bankruptcy.

For many people facing serious financial hardship, bankruptcy may still be the most practical option.

The Certificate of Completion

After finishing the credit counseling session, the individual receives a certificate of completion. This certificate is an essential document that must be filed with the bankruptcy court when submitting a bankruptcy petition.

Without the certificate, the court may dismiss the bankruptcy case. Because of this requirement, it is important to complete credit counseling through an approved provider and keep documentation ready for filing.

Credit Counseling After Bankruptcy Filing

In addition to pre-filing counseling, individuals must also complete a debtor education course before their debts can be discharged. This second course focuses on financial management and responsible credit use.

The goal of this requirement is to help individuals rebuild financial stability after bankruptcy and avoid future financial difficulties.

How Legal Guidance Can Help During the Bankruptcy Process

Although credit counseling is required before filing bankruptcy, it is only one step in a larger legal process. Filing the necessary paperwork, protecting assets, and selecting the appropriate type of bankruptcy all require careful consideration.

Working with a bankruptcy attorney can help individuals understand how credit counseling fits into their case and ensure that every requirement is met.

At De Leo Law Firm, LLC, individuals in the Mandeville area can receive legal assistance in evaluating their financial situation, completing the bankruptcy process, and moving forward with greater confidence.

What Happens to Your Credit Cards After Filing Bankruptcy In Louisiana?

Fri, 13 Mar 2026 18:05:08 GMT

What Happens to Your Credit Cards After Filing Bankruptcy In Louisiana?

Filing for bankruptcy can be a significant step toward regaining financial stability. However, many people in Louisiana wonder what happens to their credit cards once they begin the bankruptcy process. Understanding how bankruptcy affects credit card accounts can help individuals prepare for the process and make informed financial decisions. For residents in the Mandeville area, the De Leo Law Firm, LLC can provide legal assistance when considering bankruptcy options.

Why Credit Card Accounts Are Closed After Bankruptcy

When a person files for bankruptcy, most credit card accounts are typically closed. Credit card companies often shut down these accounts as soon as they receive notice of the bankruptcy filing. This action is taken because the lender is no longer able to pursue collection of certain debts during the bankruptcy process.

Even if a card has a zero balance, the issuer may still close the account as a precaution. Bankruptcy signals to creditors that the borrower is experiencing financial hardship, and lenders may limit further access to credit.

How Bankruptcy Affects Credit Card Debt

In many cases, credit card debt is considered unsecured debt. This means it is not backed by collateral such as a home or vehicle. Depending on the type of bankruptcy filed, credit card balances may be handled differently.

Chapter 7 Bankruptcy

Under Chapter 7 bankruptcy, eligible credit card debt may be discharged. A discharge means that the borrower is no longer legally required to repay those debts. Once the discharge is granted, creditors cannot continue collection efforts related to the discharged balances.

Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, credit card debts are usually included in a repayment plan. The debtor makes structured payments over several years, and some remaining balances may be discharged at the end of the plan if all requirements are met.

Can You Keep Using Your Credit Cards After Filing?

Generally, individuals cannot continue using their credit cards once bankruptcy is filed. Using credit after filing without court approval could violate bankruptcy rules. Additionally, most credit card companies freeze or close accounts immediately after the bankruptcy filing is reported.

Attempting to incur new credit card debt before filing with the intention of discharging it may also create legal complications, as creditors could challenge those charges in court.

Rebuilding Credit After Bankruptcy

Although credit card accounts are usually closed during bankruptcy, individuals can begin rebuilding their credit afterward. Many people choose to apply for secured credit cards or other forms of limited credit to start establishing a positive payment history again.

Responsible financial habits such as making payments on time, keeping balances low, and managing expenses carefully can gradually improve a credit profile over time.

Legal Guidance for Bankruptcy in Louisiana

Bankruptcy laws and procedures can be complex, and every financial situation is unique. Understanding how credit card accounts will be affected is only one part of the process.

For individuals in the Mandeville area who are considering bankruptcy, De Leo Law Firm, LLC can provide legal assistance and guidance on available options under Louisiana law.

Will I Lose My Professional License If I File Bankruptcy In Louisiana?

Mon, 23 Feb 2026 20:44:46 GMT

Will I Lose My Professional License If I File Bankruptcy In Louisiana?

Financial hardship can happen to anyone, including doctors, nurses, contractors, real estate agents, accountants, and other licensed professionals. If you are struggling with debt, you may be considering bankruptcy—but you might also be worried about how filing could affect your career. One of the most common concerns we hear is: Will I lose my professional license if I file bankruptcy in Louisiana?

In most cases, the answer is no. Filing for bankruptcy does not automatically cause you to lose your professional license. However, there are important details to understand.

Bankruptcy Protection Under Federal Law

Bankruptcy is governed by federal law, and it includes protections designed to prevent discrimination against individuals who file. Government agencies—including state licensing boards—generally cannot revoke, suspend, or refuse to renew a professional license solely because someone filed for bankruptcy.

This means that if you are licensed in Louisiana and file for Chapter 7 or Chapter 13 bankruptcy, your licensing board typically cannot take action against you just because you sought debt relief.

When Could a Professional License Be at Risk?

Although bankruptcy itself is not usually grounds for losing a license, certain related issues could raise concerns with a licensing board.

For example:

Fraud or dishonesty related to financial matters
Misuse of client or trust funds
Criminal charges connected to financial conduct
Failure to comply with professional standards

If your debts are connected to allegations of misconduct, the licensing board may investigate the underlying behavior—not the bankruptcy filing itself.

Additionally, some licensing boards require disclosure of bankruptcy filings during renewal applications. Failing to disclose required information could create problems, so it is important to answer all questions honestly and accurately.

Differences Between Chapter 7 and Chapter 13

Whether you file Chapter 7 or Chapter 13 bankruptcy generally does not change the protection regarding your professional license.

Chapter 7 may eliminate qualifying unsecured debts, such as credit card balances and medical bills.
Chapter 13 allows you to restructure debt into a repayment plan over three to five years.

Both options can provide relief while you continue working in your licensed profession.

If you are concerned about how a specific debt—such as tax debt or a judgment—may impact your career, it is important to discuss your situation with a

knowledgeable bankruptcy attorney.

Bankruptcy as a Step Toward Financial Stability

In many cases, filing for bankruptcy can actually help licensed professionals protect their careers. Wage garnishments, lawsuits, and creditor harassment can interfere with your ability to focus on your work. Bankruptcy triggers an automatic stay, which can stop most collection efforts and give you breathing room.

By addressing overwhelming debt, you may be able to maintain your professional standing and continue building your career without constant financial pressure.

How De Leo Law Firm, LLC Can Help

If you are a licensed professional in Louisiana and are worried about how bankruptcy could affect your future, you do not have to navigate the process alone. At De Leo Law Firm, LLC, we can provide legal assistance to the Mandeville public. We can evaluate your financial situation, explain your options, and help you pursue debt relief while protecting your professional goals.

What Happens to Personal Loans and Payday Loans in Bankruptcy in Louisiana?

Thu, 15 Jan 2026 05:00:18 GMT

What Happens to Personal Loans and Payday Loans in Bankruptcy in Louisiana?

When financial struggles become overwhelming, many Louisiana residents rely on personal or payday loans to stay afloat. Unfortunately, these short-term solutions often come with high interest rates and aggressive collection efforts. If you’re considering bankruptcy, understanding how these debts are treated is key to finding real relief.

Personal Loans and Bankruptcy

Personal loans are typically unsecured debts, meaning they’re not backed by collateral like a home or vehicle. In a Chapter 7 bankruptcy , most unsecured debts can be fully discharged—this includes personal loans from banks, credit unions, or online lenders. Once discharged, you’re no longer legally obligated to repay them.

In Chapter 13 bankruptcy , instead of wiping out debts entirely, you create a repayment plan lasting three to five years. You’ll pay a portion of what you owe based on your income and expenses, and any remaining unsecured debt (like personal loans) may be discharged once the plan ends.

Payday Loans and Bankruptcy

Payday loans are also considered unsecured debts, so they can be discharged in both Chapter 7 and Chapter 13 cases. However, payday lenders sometimes challenge discharge if they believe the loan was taken out fraudulently—for example, if you borrowed money knowing you couldn’t repay it. Having an attorney guide you through this process helps prevent complications and protects your rights.

Stopping Collection Efforts

Filing for bankruptcy immediately triggers an automatic stay , which stops creditors from calling, suing, or garnishing wages. This includes payday lenders and personal loan companies, giving you breathing room to regain control of your finances.

At De Leo Law Firm, LLC , we can provide legal assistance to the Mandeville public. Our team helps clients understand how bankruptcy laws can relieve the burden of personal and payday loans while protecting their financial future.

Filing for Bankruptcy While Unemployed: Is It a Good Idea in Louisiana?

Thu, 11 Dec 2025 05:00:40 GMT

Filing for Bankruptcy While Unemployed: Is It a Good Idea in Louisiana?

When financial hardship meets unemployment, many Louisiana residents wonder if filing for bankruptcy could provide the relief they need. While it can be a valuable tool for a fresh start, timing and eligibility are crucial factors to consider.

Understanding Bankruptcy and Income Requirements

Your income plays a key role in determining which type of bankruptcy you can file. Under Chapter 7 bankruptcy, you must pass a means test comparing your income to the Louisiana median income. If you’re unemployed, you may more easily qualify since your income is lower. Chapter 7 allows for the discharge of unsecured debts like credit cards and medical bills, which can be a lifeline when you have no steady income.

If you are considering Chapter 13 bankruptcy, unemployment may pose challenges. Chapter 13 requires a repayment plan based on your income. Without regular wages, it’s difficult to make consistent payments, making this type of bankruptcy less feasible unless you have another source of income, such as unemployment benefits or a spouse’s earnings.

Timing Matters

If your job loss is temporary, it might make sense to wait until your income stabilizes. On the other hand, if your financial situation is worsening, filing sooner can stop creditor harassment, wage garnishments, and potential lawsuits. Bankruptcy also triggers an automatic stay, which halts most collection activities immediately.

Rebuilding After Bankruptcy

Filing for bankruptcy while unemployed can offer a clean slate, but it’s essential to plan for recovery. Rebuilding credit, budgeting carefully, and managing future income responsibly are key steps toward long-term financial stability.

At De Leo Law Firm, LLC , we can provide legal assistance to the Mandeville public. Our team helps individuals evaluate their options and make informed decisions about bankruptcy, even during periods of unemployment.

What Not to Do Before Filing for Bankruptcy in Louisiana

Mon, 10 Nov 2025 18:25:59 GMT

What Not to Do Before Filing for Bankruptcy in Louisiana

Filing for bankruptcy is a significant financial decision that can help you regain control over your debts, but the actions you take before filing can have a major impact on your case. Many people make avoidable mistakes that lead to delays, lost property, or even case dismissal. If you’re considering bankruptcy in Louisiana, here are several things you should not do before you file.

1. Don’t Transfer or Hide Assets

One of the biggest mistakes people make is moving money or property out of their name to protect it from creditors. This can look like fraud to the bankruptcy court and may lead to your case being dismissed—or even criminal charges. Be completely transparent about your assets.

2. Don’t Rack Up New Debt

Avoid using credit cards or taking out new loans right before filing. If you make large purchases or take cash advances within 90 days of filing, the court may consider that fraudulent and require you to repay those debts even after bankruptcy.

3. Don’t Repay Friends or Family First

While it might feel right to pay back loved ones before other creditors, the court sees this as “preferential treatment.” The trustee could demand those funds back to distribute evenly among all creditors.

4. Don’t Ignore Legal or Financial Advice

Each bankruptcy case is unique, and Louisiana bankruptcy laws have specific exemptions and requirements. Consulting with a qualified bankruptcy attorney before filing ensures you make the right choices and avoid costly mistakes.

5. Don’t Drain Retirement Accounts

Retirement funds are usually protected in bankruptcy. Withdrawing money from these accounts not only reduces your financial security but may also create tax liabilities.

6. Don’t Delay Seeking Help

Waiting too long to act can make your financial situation worse. Early legal guidance can help you prepare and plan a smoother path toward financial recovery.

At De Leo Law Firm, LLC , we can provide legal assistance to the Mandeville public. Our team can help you understand your options and avoid mistakes that could jeopardize your bankruptcy case.

Can I Discharge Tax Debt Through Bankruptcy in Louisiana?

Wed, 15 Oct 2025 19:03:10 GMT

Can I Discharge Tax Debt Through Bankruptcy in Louisiana?

Tax debt can be one of the most stressful financial burdens to face, especially when you’re already struggling to stay afloat. Many Louisiana residents wonder if bankruptcy can help relieve this pressure. The answer is: in some cases, yes. Certain types of tax debt can be discharged through bankruptcy—but only if specific conditions are met.

Understanding How Bankruptcy Affects Tax Debt

Not all tax debts qualify for discharge. The key factors depend on the type of tax , how old it is , and whether you filed your returns on time . Generally, income tax debt is the only type eligible for discharge; payroll and fraud-related taxes cannot be wiped out.

Conditions for Discharging Tax Debt in Bankruptcy

To discharge tax debt in Louisiana, these requirements usually apply:

The tax return was due at least three years ago.
You filed the tax return at least two years before filing bankruptcy.
The IRS assessed the tax at least 240 days before your bankruptcy filing.
No fraud or willful tax evasion occurred.

If all these conditions are met, your income tax debt may be eligible for discharge under Chapter 7 or Chapter 13 bankruptcy . Chapter 7 can eliminate qualifying debts entirely, while Chapter 13 allows you to repay a portion of your debt through a structured repayment plan, possibly reducing the total amount owed.

Why Legal Guidance Matters

Tax and bankruptcy laws are complex, and one small mistake can prevent your debt from being discharged. Having an attorney guide you through the process can make the difference between full financial relief and continued tax liability.

At De Leo Law Firm, LLC , we can provide legal assistance to the Mandeville public. Our team can help determine whether your tax debt qualifies for discharge and guide you through the steps toward a fresh financial start.

Do You Qualify for Chapter 7 Bankruptcy? Understanding the Means Test in Louisiana

Tue, 09 Sep 2025 04:00:13 GMT

Do You Qualify for Chapter 7 Bankruptcy? Understanding the Means Test in Louisiana

If you're struggling with debt and considering Chapter 7 bankruptcy in Louisiana, the means test is your first major hurdle. This test determines whether you’re eligible to discharge most of your unsecured debts—such as credit cards and medical bills—under Chapter 7. At De Leo Law Firm, LLC , we help Mandeville residents understand and navigate the means test with confidence and clarity.

What Is the Means Test?

The Chapter 7 means test is a financial assessment designed to limit Chapter 7 bankruptcy relief to those who truly cannot repay their debts. It compares your current monthly income to the median income in Louisiana for a household of your size. If your income is below the median, you pass the means test automatically. If it’s above, further calculations are required to determine whether you still qualify.

Step 1: Comparing Income to Louisiana’s Median

As of 2025, the Louisiana median incomes are approximately:

$54,000 for a single earner
$72,000 for a two-person household
$83,000 for a three-person household
$95,000 for a four-person household

These numbers adjust periodically. If your six-month average income is less than the median for your household size, you generally qualify to file under Chapter 7.

Step 2: Calculating Disposable Income

If your income exceeds the median, the second part of the means test evaluates your disposable income . This involves:

Subtracting allowed living expenses (based on IRS standards)
Deducting secured debt payments like mortgage or car loans
Accounting for child support or medical costs

If your disposable income is too high, the court may require you to file for Chapter 13 bankruptcy instead, where you repay some debts over time.

Why the Means Test Matters

Passing the means test means you may be eligible for a fresh start through Chapter 7. But if you don’t qualify, it doesn’t mean you're out of options. Chapter 13 may still allow you to reduce or restructure your debt.

Get Help From De Leo Law Firm, LLC

The means test can be complex, and a single mistake can affect your eligibility. At De Leo Law Firm, LLC , we assist Mandeville residents in determining their qualifications, calculating income accurately, and choosing the right bankruptcy path. Let us help you pursue debt relief with clarity and confidence.

Essential Documents Needed to File Chapter 13 Bankruptcy in Louisiana

Sat, 09 Aug 2025 04:00:06 GMT

Essential Documents Needed to File Chapter 13 Bankruptcy in Louisiana

Filing for Chapter 13 bankruptcy in Louisiana requires careful preparation and a complete set of financial documents. At De Leo Law Firm, LLC , we assist individuals and families in Mandeville with navigating this process efficiently and accurately. Chapter 13 bankruptcy allows debtors to reorganize their debts into a manageable repayment plan, but success depends on meeting the documentation requirements of the U.S. Bankruptcy Court.

Required Documents for Chapter 13 Bankruptcy

Before you file, be prepared to gather and submit the following:

1. Petition and Schedules

These are the core bankruptcy forms and include:

Voluntary Petition (Form B101)
Schedules A/B through J (listing assets, debts, income, and expenses)
Statement of Financial Affairs

2. Proof of Income

You must show all income sources from the past 60 days, including:

Pay stubs
Profit and loss statements (if self-employed)
Government benefits documentation
Child support or alimony income

3. Tax Returns

You’ll need to submit copies of:

Federal and state income tax returns for the past 4 years
Any unfiled returns must be filed before submitting your bankruptcy case

4. Recent Bank Statements

Bank account records for the last 2–3 months provide a snapshot of your financial activity and are used to confirm your listed income and expenses.

5. List of Creditors and Debts

A detailed list of all your creditors, their contact information, the amounts owed, and the nature of the debt must be provided.

6. List of Assets and Property

You must disclose all real estate, vehicles, personal property, and other assets, even if they are exempt from liquidation under Louisiana bankruptcy law.

7. Credit Counseling Certificate

Before filing, you are required to complete a credit counseling course from an approved provider. A certificate of completion must be submitted with your petition.

8. Chapter 13 Repayment Plan Proposal

This is your proposed plan for repaying your debts over a 3–5 year period. The plan must comply with bankruptcy rules and show how you intend to catch up on secured debts and pay unsecured creditors.

Let De Leo Law Firm, LLC Guide You

Bankruptcy is not just about paperwork—it’s about strategy and accuracy. Missing or incorrect documents can lead to delays or even case dismissal. De Leo Law Firm, LLC is here to help Mandeville residents understand their obligations and confidently move forward with a Chapter 13 case that is properly prepared and filed.

What Happens to Your Home If You File for Chapter 7 Bankruptcy in Louisiana?

Tue, 08 Jul 2025 15:32:24 GMT

What Happens to Your Home If You File for Chapter 7 Bankruptcy in Louisiana?

Filing for Chapter 7 bankruptcy is a major financial decision, especially if you're a homeowner. At De Leo Law Firm, LLC , we understand how important your home is to you and your family. If you live in Mandeville or the surrounding areas , knowing how your property may be affected can help you prepare for the process and protect your rights.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a liquidation process where most unsecured debts, like credit cards and medical bills, are discharged. In exchange, the bankruptcy trustee may sell certain non-exempt assets to repay creditors. However, many filers can retain essential property through exemptions.

Will I Lose My Home in Chapter 7?

It depends on several factors:

Your Home Equity:
Louisiana has a homestead exemption that protects up to $35,000 of equity in your primary residence. If your home equity does not exceed this exemption, the trustee cannot sell your house.
Mortgage Status:
If you're current on your mortgage payments and your equity is protected by the homestead exemption, you are more likely to keep your home . If you’re behind on payments, the lender may still pursue foreclosure even during or after your bankruptcy case.
Surrendering the Home:
Some homeowners choose to surrender their property if they owe more than the home is worth or cannot afford the payments. Chapter 7 allows you to walk away from the debt tied to the property without facing further liability.

Other Considerations

Second Mortgages or Liens:
Chapter 7 does not remove secondary liens, even if the home is protected under the exemption.
Intent to Reaffirm:
You may need to reaffirm the mortgage debt to retain the home. This means continuing your payment obligations after bankruptcy.
Rental Properties:
Investment or secondary homes are generally not protected under the Louisiana homestead exemption and are more likely to be sold by the trustee.

Speak with a Louisiana Bankruptcy Attorney

Each bankruptcy case is different. At De Leo Law Firm, LLC , we provide guidance tailored to your financial situation. If you’re considering Chapter 7 in Mandeville or across Louisiana , we’re here to help you understand your options, protect your property, and make informed decisions.

Why Bankruptcy Might Actually Improve Your Credit in the Long Run

Sun, 22 Jun 2025 16:00:00 GMT

A Fresh Start: How Bankruptcy Can Help Rebuild Your Credit

Filing for bankruptcy often carries a heavy stigma, particularly when it comes to its perceived impact on your credit. Many people fear it will destroy their financial reputation forever. But here’s the truth: while bankruptcy can initially lower your credit score, it can also provide the foundation for rebuilding stronger, healthier credit over time. At De Leo Law Firm, LLC , we help Louisiana residents use bankruptcy as a strategic tool to recover from debt and take control of their financial futures.

The Immediate Impact of Bankruptcy on Your Credit

Yes, bankruptcy will appear on your credit report— Chapter 7 stays for 10 years and Chapter 13 for 7 years . Your credit score will likely drop, especially if it was high to begin with. However, for many people already struggling with missed payments, collection accounts, and maxed-out credit cards, their score is already suffering. Bankruptcy can stop the bleeding and begin the healing process.

How Bankruptcy Clears the Way for Recovery

Bankruptcy eliminates or restructures many forms of debt, such as:

Credit card balances
Medical bills
Personal loans
Utility arrears
Some judgments

By wiping out unmanageable debts, bankruptcy stops late payments and collections , which are major contributors to low credit scores. Once the pressure of unpayable debt is gone, you can focus on rebuilding.

Why Credit Scores Often Improve After Bankruptcy

With your debts discharged or restructured, your debt-to-income ratio improves , which is a key factor in your credit score. Lenders may also view you as a lower risk after bankruptcy because:

You are legally limited from filing again for several years
You have fewer outstanding obligations
You have the opportunity to start fresh

Many filers begin to see improvements in their credit within 12 to 18 months if they adopt good financial habits.

Steps to Rebuild Credit After Bankruptcy

Review your credit report to ensure discharged debts are marked correctly.
Start a budget to manage your finances and avoid new debt.
Use a secured credit card responsibly to build positive payment history.
Make all payments on time , including utilities and rent.
Keep your balances low and avoid opening too many new accounts at once.

These efforts help demonstrate responsible credit behavior and can gradually raise your score.

How De Leo Law Firm, LLC Can Help

At De Leo Law Firm, LLC , we understand that bankruptcy is not the end—it's a new beginning. We guide Louisiana clients through the process, helping them eliminate unmanageable debt and prepare for a more stable financial future. Our team will walk you through your options and help you build a recovery plan that works.

Can You Discharge Student Loans Through Bankruptcy in Louisiana?

Thu, 22 May 2025 16:00:02 GMT

Understanding Student Loan Discharge in Bankruptcy

Student loan debt has become one of the most burdensome forms of financial obligation for individuals across the country. For Louisiana residents struggling to keep up with student loan payments, the idea of discharging that debt through bankruptcy may seem like a potential solution. But can it be done? At De Leo Law Firm, LLC , we help clients understand their legal options when facing overwhelming debt—including whether student loans can be eliminated in bankruptcy.

Are Student Loans Dischargeable in Bankruptcy?

In general, student loans are not automatically discharged through bankruptcy. Unlike credit card debt or medical bills, discharging student loan debt requires an adversary proceeding —a separate lawsuit within the bankruptcy case. The borrower must demonstrate that repaying the loans would impose an undue hardship .

The "Undue Hardship" Standard

Louisiana bankruptcy courts, like most others, typically use the Brunner Test to determine if a debtor qualifies for student loan discharge. This test requires proving three things:

Poverty: You cannot maintain a minimal standard of living if forced to repay the loans.
Persistence: Your financial situation is unlikely to improve during the repayment period.
Good Faith: You’ve made honest efforts to repay the loan, including exploring repayment plans or loan forgiveness.

Meeting all three of these factors is a high bar, but not impossible—especially with the right legal guidance.

Recent Changes That May Help

In recent years, courts and the Department of Education have shown increased flexibility in how they evaluate undue hardship. New guidance encourages a more reasonable approach to discharging student loans, especially for older loans, borrowers with disabilities, or those facing long-term financial hardship.

Additionally, federal guidance issued in 2022 has simplified the process for federal student loan borrowers to prove undue hardship when they file an adversary proceeding.

How the Bankruptcy Process Works

If you're considering bankruptcy and want to explore discharging student loans:

File for bankruptcy under Chapter 7 or Chapter 13.
Initiate an adversary proceeding specifically to address your student loans.
Present evidence that repayment would cause undue hardship.

Having a skilled bankruptcy attorney by your side can make a major difference in preparing and presenting your case.

How De Leo Law Firm, LLC Can Assist

At De Leo Law Firm, LLC , we work with Louisiana residents who are overwhelmed by debt—including student loan obligations. We evaluate each client’s situation and help determine whether a bankruptcy filing and adversary proceeding may offer relief. Our goal is to guide you through the process and help you find a path forward toward financial stability.

How Long Does Bankruptcy Stay on Your Credit Report—And What Can You Do About It?

Mon, 21 Apr 2025 15:53:31 GMT

Bankruptcy and Your Credit: What You Need to Know

Filing for bankruptcy can offer a fresh start during financial hardship, but it also comes with long-term implications—particularly for your credit report. At De Leo Law Firm, LLC , we help Louisiana residents navigate the complexities of bankruptcy and work toward rebuilding their financial future. Here’s what you need to know about how bankruptcy affects your credit and what steps you can take after filing.

How Long Bankruptcy Stays on Your Credit Report

The duration that bankruptcy remains on your credit report depends on the type of bankruptcy you file:

Chapter 7 Bankruptcy: This liquidation bankruptcy remains on your credit report for 10 years from the date of filing.
Chapter 13 Bankruptcy: Since this involves a repayment plan over 3 to 5 years, it typically stays on your credit report for 7 years from the date of filing.

During this period, the bankruptcy entry may impact your ability to obtain new credit, rent housing, or secure certain types of employment.

What Happens to Your Credit Score?

A bankruptcy filing can cause a significant drop in your credit score—often by 100 points or more. The precise impact varies based on your credit profile before filing. However, the effect lessens over time as you demonstrate improved financial behavior.

Steps to Rebuild Credit After Bankruptcy

Even with a bankruptcy on your credit report, there are proactive steps you can take to rebuild and improve your creditworthiness:

Check Your Credit Report for Accuracy: After your bankruptcy is finalized, ensure all discharged debts are correctly reported as such by the credit bureaus.
Pay Bills on Time: A strong payment history moving forward is key to rebuilding your credit.
Use a Secured Credit Card: This can help re-establish a positive credit history, as long as you pay the balance in full each month.
Keep Debt Low: Maintaining a low credit utilization ratio shows responsible credit management.
Consider Credit Builder Loans: These small loans are designed to improve your score with regular, timely payments.

Can You Remove Bankruptcy From Your Credit Report Early?

Generally, a bankruptcy cannot be removed from your credit report before the designated time unless there is an error in how it's reported. However, you may dispute inaccuracies with the credit bureaus, which could result in early removal if the entry cannot be verified.

How De Leo Law Firm, LLC Can Help

At De Leo Law Firm, LLC , we assist clients throughout Louisiana with the bankruptcy process—from initial filing to post-bankruptcy financial planning. Whether you're struggling with mounting debt or looking to rebuild your credit, we can help you understand your rights and map out a path forward.

The Difference Between Chapter 7 and Chapter 13 Bankruptcy

Thu, 06 Mar 2025 18:00:04 GMT

The Difference Between Chapter 7 and Chapter 13 Bankruptcy

When facing overwhelming debt, bankruptcy may offer a way to regain financial stability. However, it’s important to recognize that not all bankruptcy options are the same. The two most common forms of bankruptcy for individuals are Chapter 7 and Chapter 13, each with its own distinct features. In this post, we’ll examine the key differences between Chapter 7 and Chapter 13 bankruptcy to help you determine which option might be right for you.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often called "liquidation bankruptcy," allows individuals to discharge most of their unsecured debt. This includes credit card balances, medical bills, and personal loans. In Chapter 7, a court-appointed trustee sells non-exempt assets to repay creditors. Once the liquidation process is complete, the remaining eligible debts are erased, offering a fresh start for those struggling with financial burdens.

While this process can provide quick relief, not all individuals qualify for Chapter 7 bankruptcy. Eligibility depends on income and the means test, which evaluates whether your income is low enough to file under this chapter. If you have significant assets or a higher income, you may not qualify for Chapter 7 bankruptcy.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is often referred to as "reorganization bankruptcy" because it allows individuals to keep their property while reorganizing their debts into an affordable repayment plan. Unlike Chapter 7, there is no liquidation of assets in Chapter 13. Instead, the individual agrees to a court-approved repayment plan, which typically spans three to five years. During this time, you make monthly payments to a trustee, who distributes the funds to your creditors.

Chapter 13 bankruptcy is ideal for people who have steady income and wish to retain their property, such as a home or car, which they may risk losing in Chapter 7. Additionally, Chapter 13 allows for the discharge of certain debts that are not eligible for discharge under Chapter 7, such as some tax debts or overdue child support.

Key Differences Between Chapter 7 and Chapter 13 Bankruptcy

Eligibility Requirements:

Cha pter 7: Requires a means test to determine eligibility based on income. It is more suited for individuals with lower income and fewer assets.
Chapter 13: Available to those with regular income and the ability to commit to a repayment plan over several years. There are no specific income requirements, but debt limits apply.

Asset Liquidation:

Chapter 7: May involve the liquidation of non-exempt assets to pay creditors.
Chapter 13: No assets are liquidated; instead, the debtor agrees to repay debts through a structured repayment plan.

Repayment:

Chapter 7: Offers a quicker process, with most debts discharged within a few months.
Chapter 13: Involv es long-term repayment plans, typically lasting three to five years.

Which Option is Right for You?

The choice between Chapter 7 and Chapter 13 bankruptcy largely depends on your financial situation. If you have significant unsecured debt and limited assets, Chapter 7 may be the best option to eliminate your debt quickly. On the other hand, if you have a steady income, own valuable property, or need more time to pay off debts, Chapter 13 could provide a more appropriate solution.

Consulting with a knowledgeable bankruptcy attorney can help you make an informed decision based on your unique circumstances.

Both Chapter 7 and Chapter 13 bankruptcy provide ways to eliminate or restructure debt, but they operate differently and come with different eligibility requirements. Whether you’re looking to discharge your debts quickly or protect your assets while paying off what you owe, each option offers distinct benefits. If you are struggling with debt, it’s important to explore all of your bankruptcy options to determine which one aligns best with your financial goals.

What Is A Subchapter V Bankruptcy?

Thu, 06 Feb 2025 18:00:01 GMT

What Is Subchapter V Bankruptcy?

Subchapter V bankruptcy is a relatively new option designed to help small businesses reorganize their finances while continuing to operate. Part of the Bankruptcy Code, Subchapter V was introduced through the Small Business Reorganization Act of 2019. It provides a streamlined process that offers a more affordable and efficient way for small businesses to restructure their debts. If you're a business owner struggling with debt, Subchapter V may be a suitable choice to help you stay afloat and return to profitability.

How Does Subchapter V Bankruptcy Work?

Subchapter V offers an alternative to traditional Chapter 11 bankruptcy, focusing on small businesses with less complicated financial structures. In this process, business owners are given the opportunity to create a repayment plan for their debts, which typically lasts three to five years. Unlike Chapter 11, Subchapter V allows for more flexibility and a quicker resolution, making it an attractive option for small businesses looking to reorganize without incurring the costs and lengthy delays associated with traditional bankruptcy procedures.

Eligibility for Subchapter V Bankruptcy

To qualify for Subchapter V bankruptcy, a business must meet specific criteria. Generally, the business must have less than $7.5 million in debt, a threshold set by the Small Business Reorganization Act. This includes both secured and unsecured debts. The business must also be a for-profit entity that operates as a small business, rather than a large corporation. Additionally, Subchapter V is available to sole proprietors, partnerships, and corporations, provided they meet these debt limits.

Benefits of Subchapter V Bankruptcy

One of the major advantages of Subchapter V bankruptcy is the reduced costs and simpler process compared to traditional Chapter 11 filings. The streamlined process eliminates the need for a creditors' committee, and the court supervises the entire process with more frequent hearings. Business owners maintain more control over their operations, as they are responsible for drafting and submitting their repayment plan. Furthermore, Subchapter V offers greater flexibility in negotiating with creditors, which can lead to more favorable outcomes.

How Does Subchapter V Compare to Other Bankruptcy Options?

While Subchapter V bankruptcy shares similarities with Chapter 11, it is distinct in its focus on small businesses. Chapter 11 can be costly and time-consuming, often requiring extensive legal and financial resources. In contrast, Subchapter V is designed to offer a more efficient, lower-cost option for small businesses. Another key difference is that in Subchapter V, business owners retain more control over the reorganization process, as opposed to the more complex Chapter 11 structure.

If you’re a small business owner facing overwhelming debt, Subchapter V bankruptcy might provide a solution to restructure your financial obligations and continue operating. With its streamlined process, lower costs, and flexibility, it can be an ideal choice for businesses looking for a path to recovery. If you think Subchapter V bankruptcy could be the right option for your business, reach out to The De Leo Law Firm in Mandeville, LA, to explore your options and begin the process of regaining control of your business's future.

Burden of Student Loan Debt and When to Talk to a Bankruptcy Attorney

Thu, 02 Jan 2025 18:00:01 GMT

Burden of Student Loan Debt and When to Talk to a Bankruptcy Attorney

Student loan debt is a significant financial challenge for many individuals, and it can be difficult to manage when it becomes overwhelming. With rising costs of education and the pressure of monthly payments, many find themselves struggling to keep up. If you’ve been facing a constant battle to pay your student loans, it might be time to consider speaking with a bankruptcy attorney. In this blog post, we’ll discuss when it makes sense to reach out for professional help and how bankruptcy may offer a solution.

When Paying Your Student Loans Feels Impossible

If your monthly student loan payments are preventing you from covering other essential expenses, it’s a sign that your debt may be too much to handle. You may be constantly deferring or refinancing your loans but still feel stuck in a cycle of debt. When this happens, it can impact your ability to keep up with other financial obligations, such as paying bills, buying groceries, or even saving for the future. If you’re struggling to make ends meet, it may be time to speak with a bankruptcy attorney about your options.

Considering Bankruptcy for Student Loan Debt

While bankruptcy is often associated with other types of debt, it can sometimes offer a way out for those burdened by student loans. Although it is difficult to discharge student loan debt through bankruptcy, there are cases where it may be possible to have some or all of it forgiven, depending on your circumstances. A bankruptcy attorney can assess your situation and help you determine if filing for bankruptcy could offer you any relief from student loan payments.

When to Seek Help from a Bankruptcy Attorney

If you find yourself in a financial crisis due to student loan debt, it is essential to talk to a bankruptcy attorney sooner rather than later. Some signs that it might be time for a consultation include:

You’ve missed multiple student loan payments and fear the consequences.
You can’t afford to pay for basic living expenses alongside student loan payments.
You’ve considered other options, such as refinancing or consolidating, but they haven’t worked.
You are facing wage garnishments or other legal actions related to your student loans.

A bankruptcy attorney can help you explore different options, such as Chapter 7 or Chapter 13 bankruptcy, to determine the best course of action based on your unique financial situation.

Alternatives to Bankruptcy for Managing Student Loans

Before jumping straight to bankruptcy, there are other solutions that might help you manage your student loans. These options include income-driven repayment plans, loan forgiveness programs, and refinancing opportunities. It’s important to explore all potential avenues to manage your debt before making a final decision. However, if these alternatives aren’t enough to reduce your financial burden, speaking with a bankruptcy attorney could be the next step to take.

If you’re struggling with overwhelming student loan debt and feel like you have no other options, consulting with a bankruptcy attorney may provide the guidance you need to regain control of your financial situation. It’s crucial to take action before your debt worsens. A bankruptcy attorney can help you explore your options and determine the best solution to ease your student loan burden. If you're in the Mandeville, LA area and need help with student loan debt, don’t hesitate to contact The De Leo Law Firm. You can find a solution that works for your financial future with the right legal advice.

Can I Keep My Car If I File for Chapter 7 Bankruptcy in Louisiana?

Fri, 22 Nov 2024 20:49:14 GMT

Can I Keep My Car If I File for Chapter 7 Bankruptcy in Louisiana?

Filing for Chapter 7 bankruptcy can be a powerful way to eliminate debt and start fresh, but many people worry about losing important assets, like their car. In Louisiana, whether you can keep your vehicle during the bankruptcy process depends on factors such as its value, equity, and your ability to protect it using exemptions.

At De Leo Law Firm, LLC , we provide legal assistance to the Louisiana public, helping individuals navigate the bankruptcy process while safeguarding essential assets.

How to Keep Your Car During Chapter 7 Bankruptcy

Using Exemptions

Louisiana law allows you to exempt up to $7,500 in equity for a motor vehicle. Equity is calculated by subtracting the remaining loan balance from the car’s current value. If your equity is within this limit, you can likely keep your car.

Reaffirming Your Loan

If your car is financed, you can enter into a reaffirmation agreement with your lender. This means you agree to continue making payments under the original loan terms to retain the vehicle.

Redeeming Your Vehicle

You may "redeem" the car by paying its current market value in a lump sum, which is useful if your loan balance is higher than the car’s value.

No Equity or Fully Covered

If your car has little or no equity or is fully exempt under Louisiana law, you can usually keep it without further action.

When You Might Lose Your Car

If your car’s equity exceeds Louisiana’s exemption limit, the bankruptcy trustee may sell it to pay creditors.
If you’re behind on loan payments and cannot reaffirm or redeem the car, the lender may repossess it.

How De Leo Law Firm, LLC Can Help

At De Leo Law Firm, LLC , we:

Evaluate your financial situation and the value of your car.
Help you use exemptions to protect your assets.
Guide you through reaffirmation or redemption agreements if needed.

Contact Us Today

Filing for Chapter 7 bankruptcy doesn’t have to mean losing your car. Contact De Leo Law Firm, LLC for expert legal assistance and personalized guidance to help you navigate bankruptcy while protecting your most important assets.

Understanding the Documents Required for Filing Chapter 7 Bankruptcy in Louisiana

Mon, 22 Jul 2024 20:05:08 GMT

Understanding the Documents Required for Filing Chapter 7 Bankruptcy in Louisiana

Are you a Louisiana resident struggling with overwhelming debt and considering filing for Chapter 7 bankruptcy? It can be a daunting process, but with the right information and guidance, you can navigate through it successfully. At De Leo Law Firm, LLC, we help Louisiana residents with their bankruptcy matters. In this blog post, we will discuss the essential documents required to file for Chapter 7 bankruptcy in Louisiana.

Income Documentation: One of the key requirements for filing Chapter 7 bankruptcy is providing documentation of your income. This includes pay stubs from the past six months, tax returns from the previous two years, and any other sources of income such as rental properties or business income. This information helps determine your eligibility for Chapter 7 bankruptcy and assesses your ability to repay debts.

List of Assets and Property: Another crucial document needed for filing Chapter 7 bankruptcy is a detailed list of all your assets and property. This includes real estate holdings, vehicles, bank accounts, retirement accounts, valuable personal belongings, and any other assets you own. Providing an accurate inventory of your assets allows the court to determine which assets are exempt from liquidation and which may be used to repay creditors.

List of Debts: In addition to listing your assets, you must also provide a comprehensive list of all your debts when filing for Chapter 7 bankruptcy. This includes credit card bills, medical bills, personal loans, mortgage debt, car loans, tax debt, student loans (although usually not dischargeable), and any other outstanding debts. Having a complete list of debts helps ensure that all creditors are included in the bankruptcy proceedings.

Credit Counseling Certificate: Before filing for Chapter 7 bankruptcy in Louisiana, you are required to complete a credit counseling course from an approved agency within six months prior to filing. You must submit a certificate of completion along with your bankruptcy petition as proof that you have fulfilled this requirement. The credit counseling course aims to educate individuals on managing finances and exploring alternatives to bankruptcy.

Bankruptcy Petition and Schedules: The final set of documents required for filing Chapter 7 bankruptcy in Louisiana includes the official bankruptcy petition and schedules. These forms provide detailed information about your financial situation, including income, expenses, assets, liabilities, contracts or leases in effect at the time of filing, and more. Completing these forms accurately is essential to ensure a smooth bankruptcy process.

Filing for Chapter 7 bankruptcy in Louisiana can be complex and involves submitting various documents to support your case. At De Leo Law Firm, LLC we understand how overwhelming this process can be and are here to help guide you through it every step of the way. By providing all necessary documentation accurately and promptly, you can increase your chances of a successful outcome in your Chapter 7 bankruptcy case. Contact us today to schedule a consultation and let us assist you with your bankruptcy needs!

Bankruptcy Exemptions in Louisiana: Protecting Your Assets in Chapter 7

Thu, 15 Feb 2024 22:39:45 GMT

Bankruptcy Exemptions in Louisiana: Protecting Your Assets in Chapter 7

Filing for bankruptcy can be a daunting and stressful process, but it does not have to mean the loss of everything you own. In Louisiana, residents filing for Chapter 7 bankruptcy are entitled to certain exemptions that protect their assets from being seized by creditors. Understanding these exemptions is crucial to ensuring that you keep what is rightfully yours during this trying time.

What types of assets are exempt in Chapter 7 bankruptcy?

One of the most important things to know about filing for Chapter 7 bankruptcy in Louisiana is which assets are exempt from seizure. Some of the most common exemptions include your primary residence (up to $35,000), personal property (up to $5,000), retirement accounts such as IRAs and 401(k)s, and tools of your trade (up to $2,500). It is important to note that these exemption amounts may change over time and should always be verified with a bankruptcy attorney.

Can I keep my home after filing for Chapter 7 bankruptcy?

Many people worry about losing their homes when filing for Chapter 7 bankruptcy. The good news is that Louisiana offers a homestead exemption that allows you to keep your primary residence up to a certain value. As mentioned above, this exemption is currently set at $35,000 but may change in the future. If the equity in your home exceeds this amount, you may still be able to keep it by agreeing to pay back some of your debt through a repayment plan.

At De Leo Law Firm, LLC we can assist the Louisiana public with bankruptcy matters.

Navigating the complex world of bankruptcy law can be challenging without the help of an experienced attorney. At De Leo Law Firm, LLC we understand how overwhelming this process can be and are here to help guide you every step of the way. Our team has extensive experience working with clients facing bankruptcy and can help you understand your rights, exemptions, and options for a fresh start.

In addition to bankruptcy filings, we also offer legal services for debt settlement negotiations and foreclosure defense. Our goal is to help our clients regain control of their finances and build a stronger financial future.

Filing for Chapter 7 bankruptcy does not have to mean losing everything you own. Louisiana residents are entitled to certain exemptions that protect their assets from being seized by creditors. Understanding these exemptions is crucial to ensuring that you keep what is rightfully yours during this trying time. At De Leo Law Firm, LLC we are here to help guide you through the complex process of filing for bankruptcy or negotiating debt settlements. Contact us today to schedule a consultation and learn more about how we can assist with your legal needs.

Navigating Chapter 11 Bankruptcy in Louisiana

Fri, 10 Nov 2023 14:46:51 GMT

Navigating Chapter 11 Bankruptcy in Louisiana

Filing for bankruptcy can be a daunting process, especially if you're a business owner or an individual with substantial assets to protect. The fear of losing everything can be overwhelming. That's when Chapter 11 bankruptcy comes into play. While it's often associated with big corporations, individuals and small businesses can also file for this kind of bankruptcy. In this blog post, we'll dive deep into the workings of Chapter 11 bankruptcy, its benefits, and how you can file for it if you're a Louisiana resident.

Chapter 11 bankruptcy is a legal process that allows businesses and individuals to restructure and reorganize their debts, to keep the business running, and to restructure the debts while being protected from legal action taken by creditors. This means that the debtor can retain control of their assets and operations, which is essential for businesses. Chapter 11 is ideal for businesses that are overburdened with debt, but that have the potential to turn things around with the right legal guidance.

One of the biggest benefits of Chapter 11 bankruptcy is that it allows the business to continue operating during bankruptcy proceedings. This can help maintain cash flow and can enable the business to restructure debts in a more practical and productive manner. An additional benefit of Chapter 11 is that it allows the debtor to renegotiate contracts and leases to create more favorable terms for themselves.

Before filing for Chapter 11 bankruptcy, it's essential to seek legal assistance as it requires adequate legal knowledge and expertise. One also needs to file a petition for Chapter 11 bankruptcy, which is a complex process that requires proper documentation and financial disclosure. It's crucial to hire a Chapter 11 bankruptcy lawyer who can help you navigate the legal process while crafting a plan for restructuring your debts, selling assets, and negotiating with creditors.

At De Leo Law Firm, LLC, we have experience Chapter 11 bankruptcy for Louisiana residents. Our team of highly skilled lawyers not only has experience representing businesses during the bankruptcy process, but we also have a deep understanding of how to navigate the legal landscape, make creditors happy and expedite the process. Our firm will help you with the paperwork, appear in court for you, and represent you in various other legal avenues.

Navigating Chapter 11 bankruptcy can be a stressful and complicated process. It's crucial to hire an experienced attorney to guide you through the legal landscape. The team at De Leo Law Firm, LLC, has the expertise and experience to assist Louisiana residents with Chapter 11 bankruptcy matters. Contact us today to discuss your financial situation and how we can help you restructure your debts and move forward.

The Importance of Hiring a Bankruptcy Attorney in Chapter 13 Cases

Wed, 01 Nov 2023 01:56:18 GMT

Filing for bankruptcy can be a daunting and overwhelming process, especially when you’re not familiar with the legalities involved in the filing. Chapter 13 bankruptcy, in particular, can be quite complex and challenging to navigate without professional guidance. This is where the role of a competent and experienced bankruptcy attorney comes in. Bankruptcy attorneys are trained and knowledgeable about the intricacies of the bankruptcy process. In this blog post, we’ll delve into the importance of hiring a bankruptcy attorney, the benefits you stand to gain, and what exactly they do during the bankruptcy process.

1. Expert Legal Guidance and Advice: Filing for chapter 13 bankruptcy is not a decision that should be taken lightly. It is essential to ensure that you have all the necessary information before you make a move. This is where a bankruptcy attorney comes in. They provide expert legal guidance and advice, ensuring that you make an informed decision before filing. A qualified attorney has years of experience in handling complex bankruptcy cases, and they can review your financial situation, suggest viable options, and help you make the best decision.

2. Professional Representation and Advocacy: With a competent bankruptcy attorney on your side, you have an advocate who will represent you in court. They will work tirelessly to ensure that your rights are protected and that you get the best possible outcome. Bankruptcy attorneys understand the legalities involved in chapter 13 cases and can provide you with the best defense possible.

3. Reduction of Stress: Filing for chapter 13 bankruptcy can be an emotionally draining experience. However, with legal representation, your attorney will lift most of the burden off your shoulders. Your attorney will take care of all the paperwork, court filings, and communication with your creditors. This means that you will have more time to focus on yourself and your family, reducing your stress levels considerably.

4. Handling of Complex Paperwork: Filing for chapter 13 bankruptcy involves tons of paperwork that only a professional can manage effectively. Bankruptcy attorneys have been trained to handle these legal documents, ensuring that everything is in proper order, reducing the risk of errors, and speeding up the process. This also ensures that your case does not suffer any setbacks due to paperwork errors.

5. Negotiation with Creditors: One of the primary tasks of a bankruptcy attorney is to negotiate with your creditors. They will work with your creditors to come up with a repayment plan that suits your financial situation. Your attorney will ensure that you get a fair deal by negotiating lower interest rates, reduced monthly payments, extended payment plans, or even debt forgiveness, depending on your unique situation.

Filing for chapter 13 bankruptcy in Louisiana can be intimidating, but with the help of a competent bankruptcy attorney, you can make the process more manageable. A bankruptcy attorney provides expert legal guidance, professional representation, and advocacy, reduces stress, handles complex paperwork, and negotiates with creditors on your behalf. Get in touch with a reliable bankruptcy attorney today and take your first step towards financial freedom.

Debt Limit Increased for New Chapter 11 Subchapter V

Mon, 27 Apr 2020 20:06:29 GMT

In February, 2020, a new Subsection V to Chapter 11 of the Bankruptcy Code became effective.

As many of you are aware, Chapter 11 is generally used for the purpose of reorganization by businesses or by individuals whose debt exceeds the Chapter 13 debt limitation (below $394,725 in unsecured debt and below $1,184,200 in secured debt). Chapter 13 debt limits can easily be surpassed by individuals who have personally guaranteed business debt or have large student loans. The problem with Chapter 11 to small businesses and individuals is that it moves slowly and is very expensive as it was originally designed to reorganize large corporations.

As an alternative, Congress finally passed a new Subchapter V which creates a shorter, more cost effective, stream-lined approach for small business and personal reorganization. As passed, individuals and businesses that qualify as a "small business debtor" are eligible for relief.

To be a "small business debtor," the following criteria are required: (i) debtor is engaged in commercial or business activities; (ii) debtor has no more than $2,725,625 of non-contingent liquidated secured and unsecured debt; (iii) 50% of debt must have been generated from business or commercial activity; and (iv) the debtor cannot have as its primary activity the ownership of single asset real estate.

Under the recently passed CARES Act, the debt limit for a Subchapter V entity has been increased, applicable only for 12 months since the passage of the Act, to $7,500,000. However, this only applies to Debtors filing their cases AFTER the passage of the CARES Act in March, 2020. The higher debt limit will help many small businesses and individuals who would otherwise been ineligible had the losses not occurred after the outbreak of COVID-19.

Could the COVID-19 Pandemic Lead to the End of Medical Bankruptcy?

Thu, 23 Apr 2020 20:03:10 GMT

medical bankruptcy

In the middle of an election year where healthcare is already a hotly debated issue, the COVID-19 pandemic has stirred further discussion about whether major changes are necessary. During the Democratic presidential primary, the concept of Medicare for All split the candidates. While the candidate who promoted that concept has since dropped out of the race, the significant financial pressure on consumers and healthcare providers highlighted by the pandemic might strengthen the position of those who seek a fundamental overhaul to America’s healthcare system.

One study says that medical costs are a factor in about two-thirds of the bankruptcies filed within the United States. Serious divisions still exist regarding ways to limit financial hardship, but the coronavirus crisis has highlighted several concerns that have prompted calls for change:

High costs of inpatient care — Estimates put the average cost that an uninsured person would have to pay for inpatient coronavirus care between $40,000 and $75,000. Even in circumstances where a patient has health insurance, high deductibles or uncovered costs could push them toward bankruptcy, especially in a situation when other economic pressures exist.

Importance of preventative measures — Many people and organizations have criticized the U.S. healthcare system for being too reactive rather than offering concrete ways to prevent long-term health issues. The explosion of coronavirus and the fact that it seems much more harmful to individuals with largely treatable conditions such as diabetes and high blood pressure might prompt insurance companies and governments to work even harder to support preventative care to lessen the likelihood of significant afflictions, and costs, later on.

Struggling healthcare providers — The last thing on most people’s minds when they hear about debt problems within the healthcare industry is the fate of the hospitals that charge them so much. However, the cancellation of most non-coronavirus procedures during the pandemic demonstrates how slim a margin exists for healthcare facilities, particularly in rural areas.

It’s not uncommon for people to say that “nothing will ever be the same” as we go through the COVID-19 pandemic, and in the healthcare sector that might very well be true. Perhaps the intense focus on industry problems will foster change that makes medical bankruptcy a thing of the past. Until then, however, medical expenses, whether coronavirus-related or not, could put tremendous financial strain on you and your family. If you are struggling with medical debt or serious financial difficulties related to the economic crisis, finding the right bankruptcy lawyer could help you overcome your difficulties.

Contact a bankruptcy lawyer to discuss your debt or collection issue

The De Leo Law Firm represents clients in bankruptcy actions and related matters. Please call 985-727-1664 or contact the firm online to schedule a consultation.

How the COVID-19 Pandemic Affects Your Pending Bankruptcy Proceeding

Wed, 04 Mar 2020 21:08:31 GMT

Every part of the country has been affected by the coronavirus. Like restaurants, arenas and other locations where people assemble for business or pleasure, most courts have been closed. If you are in the midst of a bankruptcy proceeding, your case might be delayed, handled telephonically or be otherwise disrupted due to the pandemic. Furthermore, as bankruptcy courts attempt to improvise solutions for debtors and creditors, the country’s economic upheaval indicates that the system might soon become overwhelmed.

Regardless of what you hear on the news or from friends, don’t assume either that your case is definitely delayed or that it will remain unaffected, as courts typically make these decisions based on local conditions. However, you should be aware that potential impacts to your bankruptcy proceedings might include:

Court closures — Many federal courthouses have been off limits for understandable reasons. In Detroit, a court was closed after a security officer tested positive for COVID-19, an example of local conditions preceding top-down decisions to close. You can check with your lawyer, call the court or see updates on closures in your state here .

Telephonic creditors’ meetings — As the pandemic was spreading across the country, the U.S. Trustee ordered that Section 341 Creditors’ Meetings no longer be held in person. Depending on the specific COVID-19 restrictions in your area, Section 341 meetings might still be happening virtually. If you just filed recently, your notice should arrive in the mail shortly with a meeting date and possibly instructions for holding the meeting online or by phone.

Payment and filing deadlines — Dates for filings and payments have not changed, and you should assume that the court will still require that all deadlines be met unless you have received a written notice informing you otherwise.

In-person signatures — Normally, bankruptcy petitions require a “wet signature” — meaning pen-to-paper, in-person signatures. Depending on where you live and current social distancing restrictions, these requirements might be waived.

Changes in the court system due to COVID-19 may differ from one locality to the next. Consult an experienced bankruptcy attorney to help you navigate constantly evolving processes and changing norms, so that you can emerge from bankruptcy as quickly and successfully as possible.

Contact a dedicated bankruptcy lawyer to learn about your options

[ln::firm_name] represents clients in bankruptcy proceedings and other debt relief matters. For a consultation regarding your case, please call [ln::phone] or contact the firm online.

robin-deleo

What Is the Role of Credit Counseling in Louisiana Bankruptcy?

What Is the Role of Credit Counseling in Louisiana Bankruptcy?

Why Credit Counseling Is Required Before Filing Bankruptcy

What Happens During a Credit Counseling Session

Exploring Alternatives to Bankruptcy

The Certificate of Completion

Credit Counseling After Bankruptcy Filing

How Legal Guidance Can Help During the Bankruptcy Process

What Happens to Your Credit Cards After Filing Bankruptcy In Louisiana?

What Happens to Your Credit Cards After Filing Bankruptcy In Louisiana?

﻿ Why Credit Card Accounts Are Closed After Bankruptcy

How Bankruptcy Affects Credit Card Debt

Chapter 7 Bankruptcy

Chapter 13 Bankruptcy

Can You Keep Using Your Credit Cards After Filing?

Rebuilding Credit After Bankruptcy

Legal Guidance for Bankruptcy in Louisiana

Will I Lose My Professional License If I File Bankruptcy In Louisiana?

Will I Lose My Professional License If I File Bankruptcy In Louisiana?

Bankruptcy Protection Under Federal Law

When Could a Professional License Be at Risk?

Differences Between Chapter 7 and Chapter 13

Bankruptcy as a Step Toward Financial Stability

How De Leo Law Firm, LLC Can Help

What Happens to Personal Loans and Payday Loans in Bankruptcy in Louisiana?

What Happens to Personal Loans and Payday Loans in Bankruptcy in Louisiana?

﻿ Personal Loans and Bankruptcy

Payday Loans and Bankruptcy

Stopping Collection Efforts

Filing for Bankruptcy While Unemployed: Is It a Good Idea in Louisiana?

Filing for Bankruptcy While Unemployed: Is It a Good Idea in Louisiana?

﻿ Understanding Bankruptcy and Income Requirements

Timing Matters

Rebuilding After Bankruptcy

What Not to Do Before Filing for Bankruptcy in Louisiana

What Not to Do Before Filing for Bankruptcy in Louisiana

﻿ 1. Don’t Transfer or Hide Assets

2. Don’t Rack Up New Debt

3. Don’t Repay Friends or Family First

4. Don’t Ignore Legal or Financial Advice

5. Don’t Drain Retirement Accounts

6. Don’t Delay Seeking Help

Can I Discharge Tax Debt Through Bankruptcy in Louisiana?

Can I Discharge Tax Debt Through Bankruptcy in Louisiana?

﻿ Understanding How Bankruptcy Affects Tax Debt

Conditions for Discharging Tax Debt in Bankruptcy

Why Legal Guidance Matters

Do You Qualify for Chapter 7 Bankruptcy? Understanding the Means Test in Louisiana

Do You Qualify for Chapter 7 Bankruptcy? Understanding the Means Test in Louisiana

﻿ What Is the Means Test?

Step 1: Comparing Income to Louisiana’s Median

Step 2: Calculating Disposable Income

Why the Means Test Matters

Get Help From De Leo Law Firm, LLC

Essential Documents Needed to File Chapter 13 Bankruptcy in Louisiana

Essential Documents Needed to File Chapter 13 Bankruptcy in Louisiana

Required Documents for Chapter 13 Bankruptcy

1. Petition and Schedules

﻿

2. Proof of Income

3. Tax Returns

4. Recent Bank Statements

5. List of Creditors and Debts

6. List of Assets and Property

7. Credit Counseling Certificate

8. Chapter 13 Repayment Plan Proposal

Let De Leo Law Firm, LLC Guide You

What Happens to Your Home If You File for Chapter 7 Bankruptcy in Louisiana?

What Happens to Your Home If You File for Chapter 7 Bankruptcy in Louisiana?

﻿ What Is Chapter 7 Bankruptcy?

Will I Lose My Home in Chapter 7?

Other Considerations

Speak with a Louisiana Bankruptcy Attorney

Why Bankruptcy Might Actually Improve Your Credit in the Long Run

A Fresh Start: How Bankruptcy Can Help Rebuild Your Credit

The Immediate Impact of Bankruptcy on Your Credit

How Bankruptcy Clears the Way for Recovery

Why Credit Scores Often Improve After Bankruptcy

Steps to Rebuild Credit After Bankruptcy

Why Credit Card Accounts Are Closed After Bankruptcy

Personal Loans and Bankruptcy

Understanding Bankruptcy and Income Requirements

1. Don’t Transfer or Hide Assets

Understanding How Bankruptcy Affects Tax Debt

What Is the Means Test?

What Is Chapter 7 Bankruptcy?