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The process of bankruptcy offers debtors a clean slate when they are overwhelmed by financial burdens. Once a bankruptcy case is completed, however, the debtor will still need basic possessions and assets to move their life forward. Fortunately, the Bankruptcy Code recognizes these basic needs and provides a variety of property exemptions for debtors. If property is exempt, it will not be subject to the claims of creditors.

Under new bankruptcy law, a debtor will be required to submit a schedule or list of exempt property when they file the bankruptcy petition. The schedule should include a description of the property, specifying the law authorizing the exemption, and list the value of the exemption and its market value. This information allows parties involved in the case to evaluate the exemption claim and submit any legitimate objections within 30 days from the meeting of the creditors. If someone objects, they must prove that the exemption has been improperly claimed.

Every bankruptcy case is evaluated separately but in most cases, the debtor does not have to give up their property or necessary possessions. During and after the closing of the case, the exempted property is protected by law. In fact, not only are you allowed to keep the exempted property, but also the equity, if any, that one may have on the property. Equity is the difference between the value of the exempted property and the remaining debt.

Homestead Exemption

The homestead exemption applies to property used as a residence. Current Louisiana law limits a homestead exemption to $35,000. The homestead exemption is also limited if it is used to delay, hinder, or defraud a creditor.

Automobiles

The exemption amount for an automobile under Louisiana law is $7,500. The equity in the vehicle is based on its market value less any loans. If the trustee sells it, the debtor is entitled to receive the exemption amount. It is also possible to pay the trustee the amount above the exemption and keep the vehicle.

Household Items

Louisiana law provides unlimited exemptions for household items. These types of items have low resale value and most bankruptcy trustees will not view them as a viable source of assets to use in repaying creditors.

Retirement Assets

Debtors can exempt retirement funds under § 522(d)(12) of the Bankruptcy Code. The exemption applies to pension, profit sharing and stock bonus plans, employee annuities, Individual Retirement Accounts (IRAs), deferred compensation plans such as a 401(k) account, and certain trusts.

If you are thinking about filing for bankruptcy in Louisiana, contact the firm that focuses exclusively on Louisiana bankruptcy laws, Kirkpatrick and Associates. Every day, the attorneys at Kirkpatrick and Associates help people save their homes, their cars, and wipe out their debts from $5,000 to $300,000. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time. For a free consultation, call 504-828-3311 or visit kirkpatrickandassociates.com.

***To find a Pre-Screened Attorney in your area, please call our 24Hr Unbiased Law Firm Referral Hotline approved by the California Bar Association at 661-310-7999.***

In today’s very tough economic times, the process of filing bankruptcy may have crossed your mind. This is not a decision to be made lightly and should be considered only as a last resort because bankruptcy is going to have multiple long term negative effects on you, not the least of which is that it will be prominently shown on your credit report for the next 7 to 10 years.

So where do you go to get your bankruptcy questions answered? Obviously you are doing research on the Internet which is a great place to start. But there are many facets to bankruptcy that you need to understand before you can make an intelligent decision as to whether to pursue filing or not. With the recent sweeping changes in bankruptcy law, it is no longer something you can or should do on a whim or if you are simply tired of paying your bills every month.

First of all, what bankruptcy alternatives to you have? You probably have more than you realize, many of which are listed at our web site. Have you considered debt consolidation? Not a debt consolidation LOAN because another loan is just about the last thing you need right now, but using a debt consolidation service. You may also have options for debt settlement which has allowed many consumers to avoid bankruptcy.

You need to realize that with the new bankruptcy laws, one of the things that will be done is to prepare a very detailed financial statement on where you are financially at this point in time. This will be presented to the federal bankruptcy judge, who will examine it and make a determination as to whether or not you will even be allowed to file. Yes that’s right, you may not even be approved to file if this financial information is not presented in the right format or in the right light.

This aspect is where you should consider using a qualified bankruptcy lawyer to help you with this process. They can analyze your situation since they are very familiar with the laws and especially how those laws apply in your state. They can recommend options and alternatives, and if bankruptcy is indeed your best option, they know how to present your financial information in the right light so that it can be approved to file. You should not be concerned about the lawyer’s fees, since the vast majority of people have found that using a lawyer saves them much more in time, money, and assets that more than offset those fees. Contrary to the way it worked in the past, bankruptcy is no longer a do-it-yourself process.

Have you analyzed your outstanding debt to determine what types of debt are there? If not, you should, because there are certain types of debt that cannot be discharged by any chapter of bankruptcy. So if your debt is composed of a large percentage of this type of debt, filing bankruptcy is not going to do you any good whatsoever.

At this point in time, you undoubtedly have a number of bankruptcy questions that need and deserve answers. You need to know what your options are and the best way to proceed because doing nothing is absolutely the worst possible action.

To find a Pre-Screened Attorney in your area, please call our 24Hr Unbiased Law Firm Referral Hotline at 661-310-7999.

Filing bankruptcy is always a complex and stressful procedure that should be both well considered and well prepared.  If your bills have become insurmountable and you need to file chapter 13 bankruptcy, you should be aware of the fact that there are a number of mandatory requirements you must meet before filing bankruptcy.  Failure to meet these requirements will result in the court refusing your chapter 13 bankruptcy.  It is evident that meeting these mandatory requirements before filing bankruptcy is the first important step on the journey to what will be, if all goes well, a clear financial future.  So what are these mandatory requirements exactly?
The first thing every consumer must do before filing bankruptcy is take a credit counseling class at a government-approved credit counseling agency.  This class must be taken within 180 days prior to filing bankruptcy.  It is vital that you file the certificate of compliance that attests you have, in fact, completed the credit counseling class.  If you are unable to take the class within the determined time period, you may be able to file for an extension, but only if you can prove you tried to obtain the class within the last five days before filing bankruptcy.  If an extension is granted, you must take the class and file the certification within 30 days after filing bankruptcy.

The second requirement you must meet before filing bankruptcy is to take the so-called means test.  This means test is key in determining whether you need to file chapter 7 or chapter 13 bankruptcy.  The means test examines your income level against a state-determined median, and determines the amount of disposable income you have which may or may not be sufficient, when filing bankruptcy, to support the repayment plan included in a chapter 13 bankruptcy.  Because the median income differs from state to state, the income level associated with a chapter 13 bankruptcy also differs from state to state.  A third requirement you must meet before filing chapter 13 bankruptcy is that you avow all documentation and information submitted to the court is well grounded in fact, and warranted by existing law or a good faith argument for the modification of the existing law.  If you are filing chapter 13 bankruptcy this means that you declare to know and understand the chapter 13 bankruptcy laws that apply when filing bankruptcy.  If you claim ignorance of the chapter 13 bankruptcy laws at any point during your chapter 13 bankruptcy filing, it will not count as an excuse.  Due to this pre-required knowledge of chapter 13 bankruptcy law, it is always in your best interest to retain the services of an experienced chapter 13 bankruptcy lawyer before filing bankruptcy.

Bankruptcy simply means inability of the debtor to pay his creditors. His liabilities have overshot his assets and he is no more able to balance the resources to clear the debts. In such cases, the debtor can file a bankruptcy application which is called a voluntary bankruptcy. If the debtor is reluctant to file such an application, then the creditors can file ‘involuntary bankruptcy application’ against the debtor. The Bankruptcy law is known to have been first enacted in England in the year 1542 and it was later enacted in US also. Thereafter many countries across the world have enacted laws governing bankruptcy. Main features: At the outset, the aim of bankruptcy law is to bail out the applicant from the financial mess so that the debtor can rejuvenate himself financially. In this process the law also tries to eliminate frivolous applicants seeking bankruptcy. With this in mind, the federal law brought out several changes to the bankruptcy law and made the process of scrutiny of the applications more stringent. For example, the bankruptcy applicants can be filed under various chapters of federal law of US. There are chapters 7 and 13 which stipulate the norms for filing applications by corporate industrial houses or partnership or other business establishments. Chapter 13 deals with the law governing the applications made by individuals. Normally, individuals are not allowed to file application under chapter 7 unless the individual has income which is more than the state’s median. The procedure: The federal law stipulates the procedure for granting bankruptcy. In the first step, the application has to be made through a bankruptcy attorney only. The attorney briefs the applicant about the steps involved in getting the required remedy. Further, the court before considering the application may require the debtor to undergo counseling. The counseling is given by experts in the field. This is a move to instill confidence in the debtor and explore the possibility of reviving repayment capacity. They would also guide the applicant in finding ways to clear the debts and lessen his burden. Thereafter the process of considering the application by the courts would commence. Normally, it would take some months before the application is finally disposed off by the courts.

What is all of the talk about bankruptcy these days? Quite simply, it is the section of the federal law that will allow a person who is in an extreme amount of debt to get a “fresh start”. It will reduce the amount of debt that is required to be paid back as well as extend the time period in which the debt must be repaid. Will you need a bankruptcy attorney to help you sort through all of this? The answer is a resounding YES and let me explain why.

The bankruptcy laws are often referred to by their chapter number in the Bankruptcy Code. Debtors may file under five different chapters; three of them are for individuals: Chapter 7, which refers to Liquidation, Chapter 11, which refers to Reorganization, and Chapter 13, which refers to Reorganization.

The laws have really changed in recent years as far as bankruptcy goes, and you are now required to sit through a course before you will even know if bankruptcy is the way you should and even can proceed. That’s right, it is no longer YOUR choice about declaring bankruptcy; the judge must approve it. This will help to determine whether you can have your debts erased through Chapter 7 of the bankruptcy laws or whether you have to enter a type of repayment plan through Chapter 13. It is better to acquire the services of a bankruptcy attorney before deciding to blindly strike off on your own. When consulting with your bankruptcy attorney, he or she will make sure that you file all of the necessary forms to discharge the debt.

That is just one of the reasons you want a good and qualified bankruptcy attorney because if you make a mistake on those forms, your case may get thrown out and you are right back to where you started. Or you may mistakenly present yourself on the forms so that you only get approved for Reorganization instead of Liquidation, which means you still have all your debts.

There are a numerous ways that the new bankruptcy laws will have their effects on debtors:

* A strict financial means test must be taken that will not allow many debtors to file under Chapter 7.

* Debtors have to receive a briefing from a credit counseling agency that has been approved for this. The debtor must do this at least 6 months before filing a bankruptcy case.

* Debtors must also take a class that has been approved on debt management techniques before receiving their bankruptcy discharge. Yes, these two steps are mandatory, even though the majority of people who file do not do so because of financial mismanagement.

* It is now easier for a court to be able to dismiss a bankruptcy case altogether or convert a Chapter 7 case to a Chapter 13 case

* It is now permitted for a court to impose sanctions on lawyers or on debtors for filing a Chapter 7 case that either had been dismissed or was converted to a Chapter 13 case.

How can a Bankruptcy Attorney Solve Credit Problems?

Bankruptcy attorneys are lawyers that specialize in bankruptcy law. They provide legal means for an individual or a business to either wipe out debts or resolve them.

Bankruptcy attorneys explain to their clients the primary purposes and applications as to how the bankruptcy laws now specifically apply to them in their unique situation. They may give such pertinent information to their clients as to under what chapter they may file, what bills are allowed to be eliminated, the length of time that payments can be extended, the possessions that are allowed to be kept, and all of the other details concerning bankruptcy.

A bankruptcy attorney will properly present your case for Chapter 7, which involves liquidation and debtor rehabilitation, or Chapter 13 which is reorganization, which is probably not what you had in mind when you decided to file. This involves a court-approved plan of reorganization as well as payment of the debt over a certain time period using future earnings.

If you are on the fence as to whether you should hire a bankruptcy attorney, you are strongly advised to you do so. There are many stories, including a couple who had the misfortune of having to apply for bankruptcy and they thought they could file online. It turns out that they filled in the paperwork in the wrong way and consequently the debts that the wife had were left intact as they only filed singly and not jointly. Don’t make that same mistake. You will be out attorney fees in the short run, but you will more than make it up when your debts are discharged.

To find a Pre-Screened Lawyer in your area, please call our 24Hr Unbiased Lawyer Referral Hotline at 661-310-7999.