Louisiana Bankruptcy
Louisiana Bankruptcy Law
Bankruptcy Code and Exemptions...
Although Federal Bankruptcy Code and U.S. Bankruptcy Laws apply to everyone, each state has its own Bankruptcy Code and Rules of Bankruptcy Property Exemption that apply specifically in that state.
Louisiana Bankruptcy Law
Louisiana Napoleonic Code Requirements...
The state of Louisiana is one of the most unique jurisdictions in all the United States, because of the Napoleonic Code tradition. Louisiana statebankruptcy laws developed quite differently than in other areas of the US. A true Napoleonic Code system relies on statutes, rather than case law (which is what lawyers refer to as a stare decisis system rather than a civil code system). The differences between Napoleonic Code and Civil Code based on case law, and the underlying national basis that originally formed state laws, cause large variations in the application of statutes, rules, and procedures followed in Federal Courts.
All debtors filing Louisiana Chapter 7 cases or Chapter 13 plans must disclosure all claims, amounts owed, contingent claims, and potential causes of action. Many debtors have been surprised by a motion to dismiss for failure to include contingent claims and causes of action for consideration by the Louisiana court.
Negligence, wrongful death, and other tort claims must be included. Tax disputes, civil and criminal fines, and child support obligations must be included. Disputed leases, contracts, and charged off debts should be included as well, to allow proper administration and eventually, the discharge of all obligations.
Louisiana Bankruptcy Exemption Process
Appraisals are inseparable from the State of Louisiana bankruptcy exemptions. In Louisiana, the value of property is strictly regulated by category and in some circumstances, individual item. Originally, the state statute was based on Napoleonic law and applied in a piecemeal fashion throughout the parishes. For example, New Orleans was subject to many exceptions as compared to Shreveport, Baton Rouge and Lake Charles. Over time however, an enduring national trend toward a more homogeneous national code has impacted Louisiana state bankruptcy law.
Appraisals Before Federal Bankruptcy Courts...
Trustees review the propriety of all Louisiana bankruptcy exemptions claimed in liquidation proceedings. These trustees serve as a assistant trustee to the US Bankruptcy Trustee, who is part of the US Department of Justice. The standard of review adopted is consistent with a single national scope, and the method of appraisal must pass muster with the trustee according US Justice Department guidelines.
Pre-Bankruptcy Planning and Preparation
Pre-bankruptcy planning is a delicate topic with many transactions prohibited, but with the assistance of a progressive bankruptcy attorney, other allowable exemptions may be identified.
In practice, most people who file for bankruptcy will actually improve their credit rating within 18 months or less. In fact, in a chapter 13 filing, credit will begin to improve once late payment reports stop, and secured loans and credit lines begin reflecting timely payments.
Overall, filing for bankruptcy can, for many Americans in many different circumstances, be an important and integral step toward financial recovery and new found fiscal stability. Ultimately, bankruptcy creates opportunities and improves net worth, so long as the decision to file was made wisely.
To learn more about Louisiana State Bankruptcy Exemptions, simply go to our U.S. Bankruptcy Exemptions page.
In most states you can legally protect your personal residence in a bankruptcy. The interesting thing is homeowners are treated differently from state to state.
Learn more about the Homestead Act and how it affects you.
Louisiana Bankruptcy Code
All Louisiana Bankruptcy cases are governed by Title 11 of the United States Bankruptcy Code, by U.S. Bankruptcy Rules, and by local Louisiana State Bankruptcy Rules promulgated by Louisiana court.
The US bankruptcy court websites generally have links to both, the Federal US Bankruptcy Rules and specific Louisiana Bankruptcy Code. Clerks in the bankruptcy courts will not give debtors, or even attorneys for debtors, legal advice, including advice about which bankruptcy rules apply to a given case.
Locate a US Bankruptcy Court in your federal judicial district.
Since US Bankruptcy Code and Louisiana Bankruptcy Rules are very technical, and since the case load in the US Bankruptcy Courts makes judges very unforgiving of mistakes or missed deadlines, it's highly recommended to seek the advice of an experienced Louisiana Bankruptcy Attorney and Certified Credit Counsellor.
The most recent Changes to the Bankruptcy Code and Bankruptcy Rules came about on April 20, 2005 as President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act. This new Bankruptcy Law came into effect October 17, 2005.
Learn more about the 25 Most Recent Changes to Personal Bankruptcy Law and how they affect you.
