Lafayette Chapter 7 Lawyer

Chapter 7 Attorney in Lafayette, LA

Many people move to Lafayette for economic opportunities. With large organizations like the University of Louisiana at Lafayette and Iberia Bank, some experience a better quality of life. However, others are not so lucky. If you are considering bankruptcy to resolve your financial issues, speak to a skilled Lafayette Chapter 7 lawyer. If rising expenses and unpaid bills are overwhelming you, reading about how bankruptcy can help you get a fresh start may make it easier to see whether Chapter 7 is a good fit for your situation.

Experienced Chapter 7 Attorneys in Lafayette, LA

At Wiley & Jowers, we know what it’s like to suffer financially after life strikes. We make it a priority to meet with our clients individually and hear their stories. This allows us to make personal plans for each situation so that every one of our clients has a plan for their bankruptcy issues.

What Is Chapter 7 Bankruptcy?

Generally, bankruptcy is a way for people to improve their financial situation by wiping away certain types of debts. This can lower your credit score for a while, but it can also free up your income that was previously consumed by debt. Before you file, it can be helpful to review how bankruptcy can affect you and what you need to know so you understand both the short-term and long-term impact.

Multiple forms of bankruptcy are available, but the most common types for individuals are Chapter 13 and Chapter 7. They both involve a similar process, but Chapter 7 is meant for those with lower incomes and does not typically require a repayment plan for creditors.

One benefit of filing for bankruptcy is the automatic stay. This keeps you from receiving collections calls and other notices during your bankruptcy proceeding. It can also prevent a foreclosure or repossession if you are considering filing for bankruptcy. However, some forms of debt are exempt from an automatic stay, like child support.

What Property Is Exempt?

Most property in a Chapter 7 bankruptcy must be sold to pay back the people who lent you money. However, you can keep some property, including:

• Cars. At least one vehicle is usually exempt so you can travel to work. The value of this vehicle is examined to make sure it is reasonable, given the situation. For example, large trucks or expensive cars might still be taken due to their high value.
• Clothes and home items. Everyday clothing and furnishings for a home are normally not taken in Chapter 7 bankruptcy. High-value clothing items might still be taken to sell. The same goes for home items that are seen as excessive, like multiple high-value televisions or other electronics.
• Insurance policies. Life insurance policies and their proceeds can be partially kept. A set amount from these is exempt from bankruptcy. After that amount is met, any additional proceeds are taken for creditors.
• Home equity. You can have a homestead exemption that allows for some of the value of your home to be kept. If you have equity that is less than the exemption amount, then your home likely will not be sold. If your equity is above the exemption or you are not current on payments, then it might be sold.
• Professional equipment. These are called “tools of the trade.” Items that you use to generate income are normally not seized in Louisiana during Chapter 7 bankruptcy. The exact items depend on your occupation.

Even though many debts are cleared after a Chapter 7 bankruptcy, some types will remain. This makes it important to speak with a Chapter 7 attorney to review how your situation could be affected by bankruptcy filings.

Why Hire a Chapter 7 Lawyer?

To qualify for Chapter 7 bankruptcy, you need to meet the income requirements to do so. This varies, depending on the median household income; in Louisiana, this is $60,986. If you make more than this amount, then you might need to take a means test to evaluate your eligibility.

The requirements for qualifying for and going through different forms of bankruptcy are complicated. That’s why an experienced bankruptcy attorney is such an important resource. They can guide you on which option is right for your financial situation. If you are still deciding who to work with, tips on how to choose the right consumer bankruptcy lawyer for you can help you feel more confident about your choice.

Why Choose Us for Chapter 7 Cases?

Wiley & Jowers is based in New Iberia, but we serve the Western District of Louisiana. Our practice focuses on bankruptcy cases, which means we provide empathetic support for our clients during an emotional and complex process.

FAQs About Lafayette, LA Chapter 7 Laws

What Is the Downside of Chapter 7?

The downside of Chapter 7 is that it does harm your credit score. Many protections within Chapter 7 bankruptcy help lower-income earners, but the impact on your credit score might prevent you from making certain financial transactions in the future. Speak with an attorney to determine whether Chapter 7 bankruptcy is right for you.

How Do I Successfully Complete a Chapter 7 Bankruptcy in Lafayette?

To successfully complete a Chapter 7 bankruptcy in Lafayette, you need to gather and submit a lot of financial documents to the court. These documents prove that you qualify for Chapter 7 bankruptcy. Credit counseling is also required before opening the case, along with an educational program about debt. Once these steps are complete, a 341 meeting is called to finalize the bankruptcy.

What Is the Maximum Amount of Income for Chapter 7?

The maximum amount of income for Chapter 7 depends on your state’s median income level. If you make more than this amount, you must take a means test that evaluates whether you qualify under Lafayette Chapter 7 laws. If you do not qualify, you might need to use another form of bankruptcy to resolve your debts in Louisiana.

What Debt Is Cancelled in a Chapter 7 Bankruptcy?

The debt that is cancelled in a Chapter 7 bankruptcy is called unsecured debt. This term is used for debt where there is no collateral, or a physical item used as security that the loan will be paid. Secured debt, like car loans and mortgages, has a physical piece of property associated with it, so it is not cancelled. Some unsecured debts, like child support and student loans, are also not cancelled.

Refresh Your Finances

20.4% of Lafayette residents live in poverty. If this proves to be too much to bear, they might look into a Chapter 7 bankruptcy due to the income requirements. For more information on which form of bankruptcy works for you, schedule a consultation with Wiley & Jowers today.