Bankruptcy clinic
Bankruptcy is a SOLUTION…not a crime.
Bankruptcy is a legal remedy by which you can:
• STOP REPOSSESSION OF YOUR VEHICLE
• STOP GARNISHMENT OF YOUR WAGES
• STOP FORECLOSURE ON YOUR HOME
• STOP HARRASSING PHONE CALLS
• GET A “FRESH START”
The Bankruptcy Clinic is a division of the Grand Law Firm. Our experienced attorneys and staff have helped thousands of clients discharge millions of dollars in debt. Our team of professionals has the necessary background and expertise to explain your alternatives and to counsel you as to the best solution to your financial problems. We represent both individuals and businesses in Chapter 7, Chapter 11, and Chapter 13 bankruptcy matters in all three federal bankruptcy courts in the state of Louisiana. We use our extensive experience to provide you with the aggressive representation that you deserve.
The Bankruptcy Clinic offers a free initial consultation, affordable fees, and personal attention to each individual case. If you are in a difficult financial situation, the stress can be overwhelming. The seasoned attorneys and staff with the Grand Law Firm’s Bankruptcy Clinic can alleviate that stress by helping you obtain immediate protection from harassing phone calls, garnishments, repossessions, and foreclosures. Our firm has helped thousands of clients achieve financial independence and relief offered by the United States Bankruptcy Code, and we can assist you on your way to a “fresh start” as well.
Many clients that we meet with have similar questions and concerns regarding the bankruptcy process. There are many myths about bankruptcy, and as bankruptcy attorneys we often must debunk those myths so that people can make informed decisions about their financial future. Below is a sampling of frequently asked questions about bankruptcy. We hope that the answers provided below will be helpful in educating you on the bankruptcy process. If you have any questions or concerns that are not addressed below, please give us a call at (225) 769-1414 or email us.
FREQUENTLY ASKED QUESTIONS:
Q: I heard that the bankruptcy law changed making it harder for people to file. Can I still file bankruptcy under the “new law?”
A: Sweeping changes to the United States Bankruptcy Code went into effect on October 17, 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), or the “new law” as it has commonly been called, expands the duties of debtors and their attorneys, lengthens the time limits between bankruptcy filings, and increases the complexity of an already difficult area of the law. There is a common misconception that these amendments to the Bankruptcy Code prohibit most people from filing for bankruptcy protection. This is simply not the case. Bankruptcy is still a useful tool for stopping foreclosures, garnishments, and creditor harassment, and it is a viable option for almost all those who need it.
Q: What is a Chapter 7 Bankruptcy? Do I qualify to file for protection under Chapter 7?
A: A Chapter 7 Bankruptcy is often referred to as a liquidation or straight bankruptcy. It is a proceeding under the United States Bankruptcy Code (11 U.S.C. §§ 101 – 1532) whereby the debtor relinquishes his or her non-exempt assets to the bankruptcy trustee. The trustee then converts these assets to cash and distributes it to the creditors. In most districts you must undergo a credit counseling course and obtain a certificate before you are eligible to file. Also, under the “new law” you must qualify to be a debtor under Chapter 7. This qualification is income based and is largely determined by whether you fall below the state’s median income level. The median income levels for Louisiana households are as follows:
| Number in Household |
Median Income (Annual) |
Median Income (Monthly) |
1 |
$33,391.00 |
$2,783.00 |
2 |
$41,500.00 |
$3,458.00 |
3 |
$50,785.00 |
$4,232.00 |
4 |
$60,161.00 |
$5,013.00 |
5 |
$67,061.00 |
$5,588.00 |
6 |
$73,961.00 |
$6,163.00 |
7 |
$80,861.00 |
$6,738.00 |
8 |
$87,761.00 |
$7,313.00 |
Please visit our Chapter 7 Bankruptcy page for more information.
Q: What is a Chapter 13 Bankruptcy? Do I qualify for protection under Chapter 13?
A: A Chapter 13 Bankruptcy is also governed by the United States Bankruptcy Code (11 U.S.C. §§ 101 – 1532) and is essentially a reorganization of debt. Under the provisions of the Code, a Chapter 13 debtor must have a regular source of income to qualify as a debtor under Chapter 13. However, the income can be from any source, be it employment, social security, disability, unemployment, retirement, pension, annuity, or family assistance to name a few. In most districts you must undergo a credit counseling course and obtain a certificate before you are eligible to file a Chapter 13 Bankruptcy. Additionally, a debtor must have less than $ 336,900.00 in unsecured debt, and $1,010,650.00 in secured debt to qualify as a debtor under Chapter 13.
A Chapter 13 Bankruptcy case is especially useful in assisting individuals whose houses are in foreclosure. A Chapter 13 Bankruptcy can stop the sheriff’s sale of your property and can allow you to catch up your mortgage arrears over a period of 36 to 60 months.
In a Chapter 13 case, the debtor must submit a plan for payment of his or her debts to the Court. The Bankruptcy Judge must approve, or confirm, this plan. The debtor then pays according to the confirmed plan, under the supervision of the Bankruptcy Court and the chapter 13 trustee. Please visit our Chapter 13 Bankruptcy page for more information.
Q: What is a Chapter 11 Bankruptcy? Do I qualify for protection under Chapter 11?
A: A Chapter 11 Bankruptcy is a reorganization proceeding governed by the provisions of the United States Bankruptcy Code (11 U.S.C. §§ 101 – 1532). Chapter 11 is usually thought of as business reorganization, and is available to businesses of all sizes from large companies such as Winn Dixie and United Airlines, to small sole proprietorships. Chapter 11 is also available to consumers, though it may only be appropriate for individuals in certain circumstances. A Chapter 11 case is usually more complex and expensive than a case under either Chapter 7 or Chapter 13 and is thus difficult to briefly summarize. Please visit our Chapter 11 Bankruptcy page for more information.
Q: What other kinds of bankruptcy are there?
A: A municipality may file for bankruptcy under Chapter 9, a family farmer or fisherman may file for bankruptcy under Chapter 12, and Chapter 15 covers certain foreign and cross border cases. Cases under these chapters of the Bankruptcy Code are not nearly as common as those filed under Chapter 7, Chapter 13, or Chapter 11, and thus are not addressed in detail on this site.
Q: Can filing bankruptcy stop harassing phone calls, garnishments, repossessions, foreclosures, and sheriff’s sales?
A: Yes. Subject to certain limited exceptions, as soon as a bankruptcy petition is filed, the automatic stay takes effect, pursuant to 11 U.S.C. § 362. The automatic stay protects the debtor and their property by stopping creditor harassment and collection efforts such as garnishments, foreclosures, and sheriff’s sales. Even if your home is scheduled for sheriff’s sale tomorrow, it may be possible for our office to help you keep your home. If your property is up for sheriff’s sale, please visit our Foreclosure and Chapter 13 Bankruptcy pages for more information or give us a call at (225) 769-1414 to set up a free consultation.
Q: Do I need to go through credit counseling before I file bankruptcy?
A: One of the biggest changes brought about by the 2005 amendments to the Bankruptcy Code, was the addition of the credit counseling and financial management course requirements. Due to the effects of Hurricanes Katrina and Rita, the credit counseling and financial management course requirements were suspended for all Bankruptcy Courts in the state of Louisiana. However, this suspension has now been lifted for the Middle and Western Districts of Louisiana. Debtors filing cases on or after March 10, 2008, in these districts are required to complete a credit counseling course and to obtain a credit counseling certificate prior to filing a bankruptcy case. Debtors in those districts must also complete a financial management course after their case is filed or they will be denied their discharge. Debtors filing cases in the Eastern District of Louisiana are not yet required to undergo credit counseling or financial management. For more information on credit counseling and financial management courses, please visit our Credit Counseling/Financial Management Course page. If you are wondering in which district you reside, please visit our Courts page for the list of parishes in each district, as well as directions to each courthouse.
Q: If I choose to file bankruptcy, will my credit be affected?
A: Bankruptcy will affect your credit however, if you are thinking about filing bankruptcy there are likely adverse elements already on your credit report, such as delinquent bills, foreclosures, repossessions, judgment liens, and collection accounts. A completed bankruptcy case may allow you to rebuild your credit by discharging significant amounts of unmanageable debt, restructuring delinquent debt, and giving you the fresh start that you need.
Q: I think I need to file bankruptcy, how do I start the process?
A: Making the decision to seek bankruptcy protection can be difficult. However, once that decision is made, most people want to take action to avail themselves of the protections of the Bankruptcy Code as soon as possible. For simple instructions on how to start the bankruptcy process, in addition to our forms, document checklists, and important notices, please visit our Bankruptcy: Getting Started page. Please also call our office at (225) 769-1414 or email us to set up your free initial consultation today.
