Substantial debt can make anyone feel as if there are no options for getting back on financial track. Fortunately, there are debt relief options, like bankruptcy, that interested and qualified Louisiana consumers could take advantage of to help them reduce and potentially eliminate their debts. Whether filing for Chapter 7 or Chapter 13 bankruptcy, understanding specific parts of the process can be useful.
In order to begin the bankruptcy process, individuals will need to file the proper paperwork with the court. Once accepted, a bankruptcy trustee will be assigned to the case, and that trustee will conduct a means test to determine where the individual’s income falls and to ensure that the bankruptcy filing is not fraudulent. Overall, the purpose of the means test is to ensure that a person is eligible for bankruptcy.
Parties may also want to remember that not all debts are cleared through bankruptcy. If a person owes child or spousal support, those debts will still exist. Additionally, if an individual accumulated debt right before filing for bankruptcy, he or she may still be liable for those recently acquired balances. It may also help parties to understand that, even when filing liquidation bankruptcy, they will not lose every asset that they own, as certain property is exempt from such proceedings.
Understandably, many Louisiana residents may have concerns before taking this debt relief avenue. Luckily, there are legal professionals available who can help answer questions and provide reliable insight into specific cases. If individuals would like help with their cases, they may wish to consult with experienced bankruptcy attorneys.