Bankruptcy is a legal process in which an individual who cannot reasonably pay his or her bills is provided an opportunity for a fresh financial start. Bankruptcy is a right granted by federal law, and all bankruptcy cases are handled in federal court. When an individual files for bankruptcy, all debt collection calls are put to a stop.

• Bankruptcy may enable you to discharge most or all of your debts, eliminating your legal obligation to pay them. After you file for bankruptcy, collectors cannot legally attempt to collect on debts that have been discharged.
• Bankruptcy may also stop foreclosure proceedings on your home and provide a window for you to catch up on missed payments. However, bankruptcy cannot eliminate mortgages and other property liens.
• Bankruptcy can also prevent the repossession of your car or other valuable property. It can force a creditor to return property that has been repossessed prior to bankruptcy.
• Filing for bankruptcy may prevent wage garnishment, debt collection harassment, and other creditor actions to collect on your debt.
• Previously terminated utility services may also be restored.
• Bankruptcy can help you challenge the claims of creditors who have committed fraud in attempts to collect your debt.

If you know that you cannot pay off all of your debts, or have had trouble negotiating a payment plan with your creditors, bankruptcy may be the most reasonable option. This is especially true if you fear the possibility that a creditor will sue you and/ or seize assets. Chapter 7 and Chapter 13 bankruptcy are the most commonly filed bankruptcies by individual debtors. Let our attorneys help you pave the way for financial freedom!

Bankruptcy is no cure-all for all of your financial problems. There are several types of debts a Louisiana bankruptcy cannot eliminate:

• Child support and alimony obligations
• Student loan debt
• Tax debt
• Other nondischargeable debts, such as fines and penalties imposed for violating the law, like traffic tickets and criminal restitution
• Debts for personal injury or death caused by your intoxicated driving
• Cosigner debt. A bankruptcy cannot eliminate the debt of cosigners. If someone you know cosigned a loan, that person may still have an obligation to repay the loan partially or in full
• Debts incurred after the bankruptcy has been filed

At E. Orum Young Law Offices, we understand that bankruptcy is a tough decision to make, and that it is not for everyone. However, we have experienced first-hand the many ways bankruptcy has helped individuals climb out from a deep pit of debt. There are four types of bankruptcy that can be filed. Your bankruptcy attorney will help you decide which option works best for you during your first consultation.