Chapter 7 bankruptcy – liquidation

Chapter 7 is a portion of the Bankruptcy Code that allows you to discharge, or eliminate, most debts. Like most other types of bankruptcy, a Chapter 7 will stop foreclosure, stop garnishment and stop harassing creditors. A Chapter 7 bankruptcy is particularly useful if you have a large amount of unsecured debt (i.e., credit cards, medical bills, signature loans, collections, lawsuits) and little to no exposed assets. An asset is exposed if it is not exempt under Louisiana or federal non-bankruptcy law, and if it is not subject to a mortgage or lien.

There is an income test, often called the “means test” to determine if you qualify for Chapter 7 relief. If your gross income for the six months preceding the filing of your case is below the median income for the state of Louisiana, then you qualify to file a Chapter 7. If it is above the median income, you may still qualify if you have enough allowed deductions to get you below the line. If your income is too high to qualify for a Chapter 7, you may still seek relief under Chapter 13. The median income chart for the state of Louisiana is below:


When considering filing for Chapter 7 bankruptcy, many people are concerned about losing assets, such as a house or car. It is often possible to keep these items in a Chapter 7 bankruptcy by maintaining payments on the loans secured by these items and by reaffirming those debts. Each person’s situation is unique, which is why it is important to come in for a free initial consultation to discuss your specific assets, debts and income. It costs nothing to come in and talk with us to go over your options.

Most of our clients are also concerned about costs. Chapter 7 cases are handled on a fixed-fee basis. A chart outlining the fees that we charge for Chapter 7 representation can be found on our Fees page. For more information about Chapter 7, please visit our Frequently Asked Questions page.

Call today to schedule your free initial consultation.

In the Lafayette area, call 337-347-9919.
In the Baton Rouge area, call 225-771-8220.

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Andress | Inzina
218 Rue Louis XIV, Suite A
Lafayette, LA 70508
Telephone: 337-347-9919
Fax: 337-541-2553
Andress | Inzina
343 N. Third Street, Suite 307
The Roumain Building

Baton Rouge, LA 70801
Telephone: 225-771-8220