Debt can be a burden that gets out of control and soon the debtor finds themselves in deep financial trouble. Whether you’ve overleveraged your assets or were hit by outrageous medical bills, there is relief from your debts through bankruptcy. It’s not usually the route a person or business wants to take. However, it is an option that can pay off for the right person and discharge a large proportion of their debt, but which debts?
What Does Discharge of Debts Mean?
When you file for bankruptcy, you are essentially asking the U.S. bankruptcy court to eliminate or discharge some or all your debt. When your debts are discharged, you are no longer liable for the balance, and all collection activities must cease.
You can have the following debts discharged if you file bankruptcy:
Accounts with collection agencies
Back taxes beyond a specific number of years
Balances left after car repossession
Bounced checks unless they were fraudulently written or obtained
Civil claims for traffic accidents and premises liability settlements
Credit card debt including late fees
Federal benefit overpayments including veteran’s assistance and social security
Past due rent and utilities
Other debts not on the list above can be discharged through Chapter 7, Chapter 11, or Chapter 13 bankruptcy.
Student loans are not usually discharged in bankruptcy, but there have been rare instances in which judges have included student loans in bankruptcy verdicts. In those cases, the person requesting student loan discharge had to demonstrate that they have an extreme hardship that makes them unable to pay the debt. For instance, someone who becomes paralyzed and unable to work may have their student loans dismissed.
Consult with a Bankruptcy Lawyer in Louisiana
When you decide to file for bankruptcy, it is important that you choose the types of bankruptcy that are best for your situation. Chapter 7, Chapter 11, and Chapter 13 will give you to change discharge your debts but how that is achieved varies from structure to structure. That is why USAttorneys.com recommends you speak with a bankruptcy lawyer in Louisiana and get the details about each bankruptcy structure.
Filing for Bankruptcy in Louisiana
If you file for bankruptcy in Louisiana, the state requires you to attend a credit counseling course approved by the federal government. You could also be asked to participate in a debt educational course after you are released from the bankruptcy court.
You must produce and compile extensive financial documentation when you file for bankruptcy. You also need to know which chapter will be a better means of debt relief given the details of your case and your financial situation. Our team of bankruptcy lawyers in Louisiana will assist you with all aspects of your bankruptcy. Call and arrange a case evaluation today. Or, USAttorneys.com can have an attorney contact you.
Your bankruptcy paperwork should be filed with a bankruptcy court closest to your Louisiana location:
US Bankruptcy Court
707 Florida St, Baton Rouge, LA 70801
US Bankruptcy Court Clerk
300 Fannin St # 2201, Shreveport, LA 71101
US Bankruptcy Court Eastern District of LA
Hale Boggs Federal Building, 500 Poydras St B-601, New Orleans, LA 70130
US Bankruptcy Court Clerk
214 Jefferson St # 100, Lafayette, LA 70501