New Orleans, LA Bankruptcy Defense Lawyers: Your Guide to Financial Freedom
Congratulations! You’ve taken the first step towards reclaiming your financial future. We understand that considering bankruptcy can be overwhelming, but you’re not alone. Our team at Delancey Street is here to guide you through every step of the process. Whether you’re dealing with mounting debts, relentless creditors, or simply seeking a fresh start, our experienced bankruptcy defense lawyers in New Orleans are ready to help.
Understanding Bankruptcy: What You Need to Know
Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court. In New Orleans, the most common types of bankruptcy filings are Chapter 7 and Chapter 13. But what do these terms mean for you?
Chapter 7 Bankruptcy: Liquidation
Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” involves the sale of a debtor’s non-exempt assets to pay off creditors. It’s a quick process, typically taking about four to six months from start to finish. Here’s a breakdown of the steps involved:
- Consultation and Assessment: We start with an initial consultation to review your financial situation and determine if Chapter 7 is the right option for you.
- Credit Counseling: Before filing, you must complete a credit counseling course from an approved agency.
- Preparation and Filing of Petition: We assist you in gathering necessary financial documents and filing the bankruptcy petition.
- Automatic Stay: Once filed, an automatic stay goes into effect, halting all creditor actions against you.
- Meeting of Creditors: Approximately 4-6 weeks after filing, a 341 meeting is held where creditors can ask questions about your financial affairs.
- Completion of Financial Management Course: Before discharge, you must complete a financial management course.
- Discharge: If all goes well, you receive a discharge order, relieving you of personal liability for most debts.
Chapter 13 Bankruptcy: Reorganization
Chapter 13 bankruptcy, known as “reorganization bankruptcy,” allows debtors to keep their property and repay debts over a three to five-year period. This option is ideal for those with a steady income who can afford to make monthly payments. The process includes:
- Consultation and Assessment: Similar to Chapter 7, we begin with a thorough review of your financial situation.
- Credit Counseling: Mandatory credit counseling must be completed before filing.
- Preparation and Filing of Petition: We help you prepare and file the Chapter 13 petition, including a proposed repayment plan.
- Automatic Stay: Filing triggers an automatic stay, providing immediate relief from creditor actions.
- Confirmation Hearing: A court hearing is held to review and approve your repayment plan.
- Execution of Repayment Plan: You make monthly payments to a court-appointed trustee who distributes the funds to creditors.
- Completion and Discharge: Upon successful completion of the repayment plan, remaining dischargeable debts are wiped out.
Common Concerns and Misconceptions
Worried about losing your home or car? Fear not! Louisiana law provides specific exemptions to protect certain assets during bankruptcy. For example, the homestead exemption allows you to keep your home if its equity is below a certain threshold. Similarly, personal property exemptions can protect your car, household goods, and other essentials.
Concerned about your credit score? While bankruptcy does impact your credit, it’s not the end of the world. In fact, many people find that their credit score begins to improve shortly after their debts are discharged. Plus, there are steps you can take to rebuild your credit post-bankruptcy, such as obtaining a secured credit card or making timely payments on any remaining debts.
The Importance of Professional Help
Navigating the complexities of bankruptcy law can be daunting. That’s why choosing the right bankruptcy defense lawyer is crucial. At Delancey Street, we pride ourselves on our personalized approach and deep understanding of Louisiana’s bankruptcy laws. Our team will work tirelessly to ensure your rights are protected and your financial future is secured.
Case Study: John’s Journey to Financial Freedom
John, a New Orleans resident, was drowning in credit card debt and medical bills. He feared losing his home and car. After consulting with our team, we determined that Chapter 7 bankruptcy was his best option. We guided him through the process, from credit counseling to the 341 meeting. In just a few months, John received his discharge order, freeing him from overwhelming debt and giving him a fresh start.
Ready to Take the Next Step?
Don’t wait! If you’re struggling with debt, contact us today for a free consultation. Our experienced bankruptcy defense lawyers in New Orleans are here to help you navigate the path to financial freedom. Call us now or leave a comment below to get started. Remember, you’re not alone—we’re in this together.
Conclusion
Bankruptcy is not the end; it’s a new beginning. With the help of our skilled bankruptcy defense lawyers at Delancey Street, you can overcome financial challenges and reclaim your future. Whether you’re considering Chapter 7 or Chapter 13, we’re here to provide the guidance and support you need. Contact us today and take the first step towards a brighter financial future.
Table: Key Differences Between Chapter 7 and Chapter 13 Bankruptcy
| Feature | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy |
|---|---|---|
| Type | Liquidation | Reorganization |
| Duration | 4-6 months | 3-5 years |
| Asset Protection | Limited (non-exempt assets sold) | More comprehensive (keep most assets) |
| Payment Plan | No | Yes |
| Eligibility | Means test required | Regular income required |
| Impact on Credit | Significant, but can be rebuilt | Significant, but can be rebuilt |
| Automatic Stay | Yes | Yes |
Legal Citations:
- 11 U.S.C. § 727: Discharge in Chapter 7 bankruptcy.
- 11 U.S.C. § 1328: Discharge in Chapter 13 bankruptcy.
- La. R.S. 44:114: Procedures for cancelling judicial mortgages post-bankruptcy.
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. For personalized legal assistance, please contact our office directly.