Louisiana Bankruptcy Law: How to Handle Creditors After Filing

Filing for bankruptcy in Louisiana can be a challenging yet transformative step towards financial recovery. Once you initiate the process, understanding how to handle creditors becomes crucial. This article delves into Louisiana bankruptcy law and provides guidance on managing creditor actions after filing.

In Louisiana, the two primary types of personal bankruptcy are Chapter 7 and Chapter 13. Chapter 7 bankruptcy allows for the discharge of unsecured debts like credit card balances and medical bills, while Chapter 13 involves creating a repayment plan to pay off debts over three to five years. Regardless of the type you choose, once you file for bankruptcy, an important legal protection called the "automatic stay" comes into effect.

The automatic stay prohibits creditors from taking any collection actions against you. This means they cannot call, send letters, or initiate lawsuits to recover debts. It's essential to inform your creditors that you have filed for bankruptcy, as they must cease all collection efforts immediately. To enforce this, ensure you provide them with your bankruptcy case number and the contact information for your bankruptcy attorney.

However, not all debts may be discharged in bankruptcy. Some obligations, such as student loans, certain tax debts, and child support, generally remain enforceable. Knowing which debts will survive the bankruptcy process can help you better prepare for your financial future. If you find yourself dealing with these types of creditors, communicating with them to establish a manageable payment plan can be a more straightforward approach.

If creditors continue to violate the automatic stay after they have been notified of your bankruptcy filing, you may have grounds for a legal complaint against them. In such cases, it is advisable to consult your bankruptcy attorney to explore your options. They can assist in filing a motion for sanctions against the creditor for any illegal actions taken post-filing.

After filing for Chapter 7 bankruptcy, it's vital to comply with the obligations set forth by the court, including attending a creditors' meeting known as the 341 meeting. During this meeting, your creditors can ask questions about your financial situation. Being honest and prepared to answer these inquiries can help ensure that the process goes smoothly.

For Chapter 13 bankruptcy filers, handling creditors means adhering to the repayment plan approved by the court. Your creditors will receive payments through a bankruptcy trustee, and it’s crucial to make your payments on time to avoid complications. In some situations, you might find a creditor challenging the repayment plan, which is where your attorney’s expertise becomes invaluable.

In conclusion, navigating Louisiana bankruptcy law requires careful management of creditors after filing. By understanding the protections available to you and maintaining open lines of communication with your creditors, you can work towards a fresh financial start. Always consider seeking legal advice to help you navigate the complexities of bankruptcy and ensure that your rights are protected throughout the process.