Qualification depends on the “means test,” which examines your income over the past 6 months. It must be below the median income in Louisiana. During our consultation, we will guide you through the means test to determine the appropriate bankruptcy option.

Louisiana Median Income Standards for Means Test (Cases Filed On or After May 1, 2020):

Household Size | Monthly Income | Annual Income

1 | $3,735.17 | $44,822.00

2 | $4,535.33 | $54,424.00

3 | $5,159.75 | $61,917.00

4 | $6,734.83 | $80,818.00

5 | $7,484.83 | $89,818.00

6 | $8,234.83 | $98,818.00

Bankruptcy is a powerful tool that offers individuals a chance to recover from financial hardship. However, it’s important to be aware that not all debts can be eliminated through bankruptcy. When filing for Chapter 7, it’s crucial to consider the following debts that may not be discharged:

Debts that were not disclosed in your bankruptcy filing, most student loans, certain local, state, and federal taxes (typically the most recent bills), court fees, child support and alimony payments, debts for luxury goods or services incurred within 90 days prior to filing, as well as miscellaneous fees, fines, and penalties. To address any concerns about these specific debts, it is highly recommended to discuss them with your attorney before initiating the bankruptcy process. They can provide tailored advice and guidance to ensure a smoother experience.

Odds are that if you are seriously considering filing for bankruptcy protection, then your credit report is probably not looking good. Lawsuits, judgments, late payments, collection accounts and charge-offs reflect negatively on your credit. A bankruptcy is just another credit event that appears on your report. Bankruptcy does not destroy your credit score forever.

In a word, yes. Many of my clients have received financing for homes and cars within a couple of years after filing bankruptcy. There used to be a stigma attached to filing bankruptcy, but that is a thing of the past. With so many people and businesses filing for bankruptcy, we can’t imagine that banks and lending institutions go more than a few days without seeing a bankruptcy on the credit report of a potential borrower.

The Bankruptcy Code is designed to provide you with a fresh start. Your home and car are vital components to that fresh start and to reestablishing yourself as a productive member of the economy.

One of the main reasons to hire an attorney to navigate you through the bankruptcy process is to avoid the loss of assets. Each case is different; in most cases, it is possible to keep your house, car, home furnishings and appliances through the appropriate use of exemptions, as well as with careful bankruptcy planning and strategy. If any of these items is encumbered by a loan, it is also vital that the payments are made—either directly or through a Chapter 13 plan—and that you maintain insurance on the property.

The down payment on Chapter 13 cases starts at $750.00, depending on case complexity. Chapter 7 fees are due before filing and depend upon the type of case.  The typical non-business related Chapter 7 costs $1,995.00.  Business Chapter 7 fees are based upon the complexity of the case.

After filing your Chapter 7 bankruptcy case, you will be required to attend a creditor’s meeting. This meeting will occur roughly a month after filing. Prior to this meeting, you will receive a notice from the court and a letter from Andress Law Firm notifying you of the court date and time. You will also receive a letter from your trustee, asking you to turn over certain documentation.

You must comply with the requests of your trustee. Attendance at your creditor’s meeting is mandatory, and you must bring your original driver’s license and Social Security card. We will be there with you. The trustee will swear you in, turn on his or her tape recorder and ask you a series of specific questions that you must answer truthfully, under oath. The meeting usually lasts about five to 10 minutes, and after the meeting is concluded, you are free to leave.

You will be scheduled to receive your discharge approximately 60 days after the creditor’s meeting. Between the meeting and your discharge date, you must complete your financial management course and sign any reaffirmation agreements. If your case is an asset case, you will also receive additional correspondence from the trustee. If you have an asset case, you will need to coordinate with our office and the trustee to retain your assets and pay the balance due.

Once you receive your discharge, your case is usually closed, unless the trustee is administering assets. The administration of assets usually does not delay the discharge of your debts.

A reaffirmation agreement is an agreement between you and one of your secured creditors that is signed by both parties and filed with the court for the judge’s approval. Under the terms of the reaffirmation agreement, the creditor is agreeing to allow you to keep the collateral, such as a car or a house, as long as you make the payments and keep the property insured. Signing a reaffirmation agreement excludes that debt from discharge. It is a way to keep property that would otherwise be sold to pay off your debts.

After filing your Chapter 13 bankruptcy, you will be required to attend a creditor’s meeting. This meeting will occur roughly a month after the case is filed. Prior to this meeting, you will receive a notice from the court and a letter from Andress Law Firm notifying you of the court date and time. Attendance at your creditor’s meeting is mandatory, and you must bring your original driver’s license and Social Security card. We will be there with you. The trustee will swear you in, turn on his or her tape recorder and ask you a series of specific questions that you must answer truthfully, under oath. The meeting usually lasts about five to 10 minutes, and after the meeting concludes, you are free to leave. Plan payments to the Chapter 13 trustee are due 30 days after the case is filed and direct payments to secured creditors are due on the next due date after the case is filed. Failure to make these payments could result in the dismissal of your case or the lifting of the automatic stay that protects your property. After the creditor’s meeting, the trustee will usually want some additional documentation. If so, you will need to provide that information to us, so we can turn it over to the trustee. Also, you must turn over all check stubs and all proof of mortgage payments to our office until your case is confirmed. Failure to do so could harm your case. There is a second hearing in Chapter 13 cases called a confirmation hearing. This is the hearing where the judge reviews your proposed payment plan for approval or confirmation. Once your plan is confirmed, you just need to make sure that you make all your payments, on time and in full, to successfully complete your case. Between the confirmation hearing and your discharge date, you must complete your financial management course. Failure to complete your financial management course will prevent you from receiving your discharge.

Your tax refund is property of your bankruptcy estate and should be turned over to your trustee immediately upon receipt. In a Chapter 7 case, you will usually have to give up your tax refund for only one year. In Chapter 13 cases, your tax refund will go to the trustee during the entirety of your case (three to five years). The trustees use the tax refund money to distribute to creditors.

The Fair Debt Collection Practices Act (FDCPA) is a federal statute that safeguards consumers from abusive and unfair debt collection practices. It applies to third-party debt collectors and collection agencies, excluding creditors collecting their own debts. Under the FDCPA, you have protection against various actions, including early morning and late-night collection calls, harassment (such as threats, continuous phone calls, and violence), the use of false and misleading statements by debt collectors, improper threats of legal action, and attempts to collect incorrect amounts or debts that do not belong to you. If you have been dealing with a harassing creditor, we are here to help. Contact us today for a free consultation on your creditor harassment case.