How to File for Chapter 7 Bankruptcy in Louisiana
If you are struggling with insurmountable debt and find it impossible to make ends meet, you may want to contemplate filing for Chapter 7 bankruptcy as a viable solution. This legal process allows individuals to discharge a significant portion of their unsecured debt, which typically includes personal loans, medical bills, and credit card debts. Nonetheless, filing for Chapter 7 bankruptcy in Louisiana can be a convoluted and intricate process, which demands a thorough understanding of the procedures involved. In this article, we will outline the fundamental steps to help you understand how to file for Chapter 7 bankruptcy in Louisiana.
Summary: To file for chapter 7 bankruptcy in Louisiana individuals must: complete credit counseling; prepare and file the bankruptcy petition, bankruptcy schedules, and financial documents; pay the filing fee; attend the 341 meeting of creditors; and complete a debtor education course.
Click on any of the titles below to jump to the relevant section:
1. Decide if Chapter 7 Bankruptcy is the Right Choice for You
3. Prepare Your Bankruptcy Forms to File for Chapter 7 Bankruptcy in Louisiana
A. Forms that Must be Filed on the Day You Initially File for Chapter 7 Bankruptcy in Louisiana
4. Locate Where to File Your Chapter 7 Bankruptcy Forms and File Them
5. Attend the 341 Meeting of Creditors
6. Complete a Debtor Education Course
Chapter 7 Bankruptcy Forms Checklist
1. Decide if Chapter 7 Bankruptcy is the Right Choice for You
It is crucial to determine whether filing for Chapter 7 bankruptcy is appropriate for your circumstances before filing. Chapter 7 bankruptcy is generally recommended for individuals who have little to no income and unsecured debts. However, it’s worth noting that Chapter 7 bankruptcy does not discharge all types of debts, including but not limited to student loans or child support payments.
If you are not sure about whether Chapter 7 bankruptcy is suitable for your financial circumstances, you may want to consider filing for Chapter 13 bankruptcy instead. Chapter 13 bankruptcy is a debt reorganization plan instead of liquidation, allowing you to develop a repayment plan that spans three to five years. The payment plan is structured based on your disposable income, and you are required to make payments to a bankruptcy trustee who will then disburse the funds to your creditors. By the end of the repayment period, you will have settled a portion of your debts, and any remaining qualifying debts will be discharged. Therefore, if you are uncertain about filing for Chapter 7 bankruptcy, exploring the alternative of filing for Chapter 13 bankruptcy can be a practical choice for managing your debt.
2. Complete Credit Counseling
Before filing for Chapter 7 bankruptcy, individuals are mandated to attend credit counseling sessions with an accredited agency at least 180 days before the filing date. These sessions are intended to help you comprehend your financial predicament and assess alternatives to bankruptcy. After you finish the counseling sessions, you will be granted a certificate of completion that must be submitted as a part of your bankruptcy petition.
You can find this portion of the law in the Bankruptcy Code at 11 U.S.C. § 109 (h).
3. Prepare Your Bankruptcy Forms to File for Chapter 7 Bankruptcy in Louisiana
To file for Chapter 7 bankruptcy in Louisiana, you must complete and submit numerous forms to the bankruptcy court. Certain forms are required to be filed on the same day as the initial bankruptcy filing, while others must be filed within fourteen (14) days after the initial filing if not submitted on the same day.
It’s important to maintain a copy of all the forms you file as a part of your bankruptcy case for your records.
In addition, if you have dependent children, it is crucial not to disclose their full names when filing for bankruptcy. Instead, you should use their initials and provide the complete name and address of their parent or legal guardian. For instance, you could mention “A.B., a minor child,” which would ensure the child’s anonymity remains protected throughout the proceedings.
You can find this portion of the law in the Bankruptcy Code at 11 U.S.C. § 112.
The official bankruptcy forms are on the United States Courts website. In addition, you can access the Louisiana bankruptcy courts’ local forms for the Eastern, Middle, and Western districts on their respective websites. You should use the forms directly from the U.S. Courts website to ensure that you have the most accurate forms.
You can access the combined set of forms necessary for filing Chapter 7 bankruptcy in Louisiana for the Eastern and Middle districts here:
Eastern District of Louisiana Chapter 7 Bankruptcy Packet
Middle District of Louisiana Chapter 7 Bankruptcy Packet
We’ll go over the common bankruptcy forms in the next sections.
A. Forms that Must be Filed on the Day You Initially File for Chapter 7 Bankruptcy in Louisiana
The forms listed below must be filed on the same day you submit your initial bankruptcy petition:
- Voluntary Petition for Individuals Filing for Bankruptcy (Form B 101)
- Statement About Your Social Security Numbers (Form B 121)
- Credit Counseling Certificate
- Creditor Matrix / Mailing Matrix
- Filing Fee
In case you are unable to afford the filing fee, you may submit Form B 103A (Application for Individuals to Pay the Filing Fee in Installments) or Form B 103B (Application to Have the Chapter 7 Filing Fee Waived).
You might also need to file these forms if applicable:
- Initial Statement About an Eviction Judgment Against You (Form B 101A)
- Statement About Payment of an Eviction Judgment Against You (Form B 101B)
I. Petition for Chapter 7 Bankruptcy (Form B 101)
This form marks the beginning of the bankruptcy proceedings and gives the court details regarding your financial status.
II. Statement About Your Social Security Numbers (Form B 121)
The form requires you to give your Social Security number or federal Individual Taxpayer Identification number to the court. However, only the final four digits of this number will be available for public access to safeguard your privacy. This information will be disclosed to your creditors, the U.S. trustee or bankruptcy administrator, and the assigned trustee overseeing your case.
It’s important to not include this form as part of your public case file. Instead, you must submit it separately in accordance with the local court procedures in either the Eastern, Middle, or Western bankruptcy court districts of Louisiana.
III. Credit Counseling Certificate
In case you have finished credit counseling but have not received the certificate, you may submit the certificate within 14 days of filing for bankruptcy.
IV. Creditor Matrix / Mailing Matrix
You need to make a list of your creditors’ names and addresses in a specific format that your local bankruptcy court at the Eastern, Middle, or Western district will give you. It should look like a mailing list.
V. Filing Fee
The fee to file for Chapter 7 bankruptcy in Louisiana is $338. However, if you are unable to bear the expense, you may file a form seeking to waive the fee or pay it in installments.
Application for Individuals to Pay the Filing Fee in Installments (Form B 103A)
Use this form to request to pay the bankruptcy fee in installments.
Application to Have the Chapter 7 Filing Fee Waived (Form B 103B)
You can request to waive the $338 filing fee for Chapter 7 bankruptcy in Virginia with this form.
VI. Initial Statement About an Eviction Judgment Against You (Form B 101A)
If you have an eviction judgment against you from your landlord, you can use Form 101A. On the form, you should mention if you wish to stay in your home for the first 30 days after filing for bankruptcy.
VII. Statement About Payment of an Eviction Judgment Against You (Form B 101B)
Once you have filed Form 101A, if you want to continue staying in your rented home for more than 30 days after filing for bankruptcy, you can file Form 101B.
B. Forms that Must be Filed within 14 Days After You Initially File for Chapter 7 Bankruptcy in Louisiana
It is recommended that you file the forms listed below at the same time as your bankruptcy petition, but if you are unable to do so, you must file them within 14 days of filing your bankruptcy petition:
- Schedule A/B: Property (Form 106A/B)
- Schedule C: The Property You Claim as Exempt (Form B 106C)
- Schedule D: Creditors Who Have Claims Secured by Your Property (Form B 106D)
- Schedule E/F: Creditors Who Have Unsecured Claims (Form B 106E/F)
- Schedule G: Executory Contracts and Unexpired Leases (Form B 106G)
- Schedule H: Your Codebtors (Form B 106H)
- Schedule I: Your Income (Form B 106I)
- Schedule J: Your Expenses (Form B 106J)
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- Summary of Your Assets and Liabilities and Certain Statistical Information (Form B 106Sum).
- Declaration About an Individual Debtor’s Schedules (Form B 106Dec)
- Statement of Financial Affairs for Individuals Filing for Bankruptcy (Form B 107)
- Copies of all pay stubs or documents showing your income from the last 60 days before you filed for bankruptcy.
- Statement of Intention for Individuals Filing Under Chapter 7 (Form B 108)
- Chapter 7 Statement of Your Current Monthly Income (Form B 122A-1)
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In addition, if your income exceeds the median income in your state, you may be required to file the following forms:
- Chapter 7 Means Test Calculation (Form B 122A-2)
- Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Form B 122A-1Supp)
I. Schedule A/B: Property (Form B 106A/B)
This schedule requires you to provide a detailed list of all your assets, including but not limited to your home, vehicles, personal and household items, and financial assets.
II. Schedule C: The Property You Claim as Exempt (Form B 106C)
You are required to list any property that is exempt from being sold to your creditors in Schedule C. This includes any assets that are protected by state or federal law and cannot be seized to satisfy outstanding debts.
Read More: What Property is Exempt in a Chapter 7 Bankruptcy?
III. Schedule D: Creditors Who Have Claims Secured by Your Property (Form B 106D)
In Schedule D, you are required to list all of your secured creditors, which are individuals or entities that have a legal right to take a specific piece of your property if you fail to repay a loan or debt. This includes debts such as mortgages or car loans. Additionally, Schedule D asks you to provide details on the collateral you put up for each debt, as well as the amount you owe to each creditor.
IV. Schedule E/F: Creditors Who Have Unsecured Claims (Form B 106E/F)
Schedule E/F requires you to list all of your unsecured creditors, including the amount owed to each. Unsecured debts are those that do not have a specific piece of collateral or property attached to them, such as credit card or medical debts. The schedule further divides unsecured claims into two categories: priority and non-priority. Priority unsecured claims are those that are entitled to be paid first under the law, such as taxes and domestic support payments. Non-priority unsecured claims include debts such as credit cards and student loans.
V. Schedule G: Executory Contracts and Unexpired Leases (Form B 106G)
Schedule G requires you to disclose any executory contracts or unexpired leases. An executory contract refers to an agreement where both parties have yet to fulfill their obligations, while an unexpired lease is an ongoing rental agreement that has not yet been completed. The purpose of this schedule is to provide the bankruptcy court with a comprehensive overview of any ongoing contractual or leasing obligations that you may have at the time of filing.
VI. Schedule H: Your Codebtors (Form B 106H)
Schedule H asks if there are any codebtors associated with your debts. Codebtors are individuals or organizations that share responsibility for repaying your debts.
VII. Schedule I: Your Income (Form B 106I)
This schedule asks for details about your job and income.
VIII. Schedule J: Your Expenses (Form B 106J)
This schedule asks for information on the number of people in your household and what you spend.
IX. Summary of Your Assets and Liabilities and Certain Statistical Information (Form B 106Sum)
Form 106 Summary requires that you summarize your assets, liabilities, income, and expenses.
X. Declaration About an Individual Debtor’s Schedules (Form B 106Dec)
Form 106 Declaration requires that you state that the information you wrote in your schedules is correct.
XI. Statement of Financial Affairs for Individuals Filing for Bankruptcy (Form B 107)
Form B 107 requires you to provide detailed information on various aspects of your financial situation. This includes details about your sources of income, any payments you made before filing for bankruptcy, ongoing court cases, gifts received, financial accounts held, and any business interests you may have. Additionally, this form requires you to disclose any recent asset transfers or property sales.
XII. Copies of all pay stubs or documents showing your income from the last 60 days before you filed for bankruptcy.
As part of the bankruptcy filing process, you are required to submit copies of your pay stubs or other documents showing your income from the 60 days preceding the filing date. Depending on the court, you may be required to provide these documents directly to the trustee assigned to your case, rather than filing them with the court.
XIII. Statement of Intention for Individuals Filing Under Chapter 7 (Form B 108)
If you file for chapter 7 bankruptcy in Louisiana, you need to complete Form B108 if any creditors have a secured claim to take your property, or if you are renting personal property, such as a car, and the lease has not yet ended. The purpose of the statement of intention for individuals filing under chapter 7 is to find out what you, as the debtor, plan to do with your leased personal property and property with secured claims.
XIV. Chapter 7 Statement of Your Current Monthly Income (Form B 122A-1)
Form B 122A-1 asks for your current monthly income. Your current monthly income is the average amount of money you receive from all sources on a monthly basis over the last six months before filing for bankruptcy.
Read More: Understanding the Debtor’s Current Monthly Income
XV. Chapter 7 Means Test Calculation (Form B 122A-2)
The means test form is used to calculate if your income is low enough to file for Chapter 7 bankruptcy in Louisiana. If your yearly income, based on your current monthly income, is less than the state median income, then you pass the means test and do not need to complete Form 122A-2.
Read More: What is the Means Test?
XVI. Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Form B 122A-1Supp)
In case you do not pass the means test for Chapter 7 bankruptcy and you think that you qualify for an exemption from the presumption of abuse, you need to complete Form B 122A-2. This form helps you to show that you have a justifiable reason for filing Chapter 7 despite your income level. A presumption of abuse indicates that the court assumes that you have the financial capacity to repay your creditors, and thus, you may not be eligible for bankruptcy protection. If the court deems your case abusive, it may dismiss it to prevent misuse of the bankruptcy process.
4. Locate Where to File Your Chapter 7 Bankruptcy Forms and File Them
For most individuals, the bankruptcy forms should be filed in the United States Bankruptcy Court in the district where you have lived for the majority of the past 180 days.
You can find this portion of the law at 28 U.S. Code § 1408.
If you do not know where your local district is, you can use the Federal Court Finder to locate it.
5. Attend the 341 Meeting of Creditors
After submitting your bankruptcy forms, you will likely need to attend the 341 meeting of creditors. This meeting usually takes place around 30 to 45 days after your bankruptcy filing and provides your creditors with an opportunity to ask you questions regarding your financial status.
Read More: What is the meeting of creditors?
6. Complete a Debtor Education Course
Before your debts can be discharged, individuals are required to complete a debtor education course from an approved agency. This course will help you understand how to manage your finances after bankruptcy.
7. Receive Your Discharge
If your Chapter 7 bankruptcy is approved, you will receive a discharge of your eligible debts. This means that you are no longer responsible for paying these debts.
Chapter 7 Bankruptcy Forms Checklist
To help guide you through the process, we’ve put together a comprehensive checklist of the documents you’ll need to complete when filing. This chapter 7 bankruptcy forms checklist can help ensure that you don’t miss any important steps or requirements along the way.
| Chapter 7 Bankruptcy Checklist | |
|---|---|
Forms that Must be Filed on the Day You Initially File for Bankruptcy | |
Voluntary Petition for Individuals Filing for Bankruptcy (Form B 101) | ☐ |
| Statement About Your Social Security Numbers (Form B 121) | ☐ |
| Credit Counseling Certificate | ☐ |
| Creditor Matrix / Mailing Matrix | ☐ |
| Initial Statement About an Eviction Judgment Against You (Form B 101A) Or Statement About Payment of an Eviction Judgment Against You (Form B 101B) | ☐ |
Forms that Must be Filed within 14 Days After You Initially File for Bankruptcy | |
Schedule A/B: Property (Form 106A/B) | ☐ |
| Schedule C: The Property You Claim as Exempt (Form B 106C) | ☐ |
| Schedule D: Creditors Who Have Claims Secured by Your Property (Form B 106D) | ☐ |
| Schedule E/F: Creditors Who Have Unsecured Claims (Form B 106E/F) | ☐ |
| Schedule G: Executory Contracts and Unexpired Leases (Form B 106G) | ☐ |
| Schedule H: Your Codebtors (Form B 106H) | ☐ |
| Schedule I: Your Income (Form B 106I) | ☐ |
| Schedule J: Your Expenses (Form B 106J) | ☐ |
| Summary of Your Assets and Liabilities and Certain Statistical Information (Form B 106Sum) | ☐ |
| Declaration About an Individual Debtor’s Schedules (Form B 106Dec) | ☐ |
| Statement of Financial Affairs for Individuals Filing for Bankruptcy (Form B 107) | ☐ |
| Copies of all pay stubs or documents showing your income from the last 60 days before you filed for bankruptcy. | ☐ |
| Statement of Intention for Individuals Filing Under Chapter 7 (Form B 108) | ☐ |
| Chapter 7 Statement of Your Current Monthly Income (Form B 122A-1) | ☐ |
Forms that Must be Filed if Your Income is Above the Median Income in Your State | |
Chapter 7 Means Test Calculation (Official Form 122A-2) | ☐ |
| Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Official Form 122A-1Supp) | ☐ |
Conclusion
Filing for Chapter 7 bankruptcy can be a difficult decision, but it can provide a fresh start for individuals facing overwhelming debt. To file for Chapter 7 bankruptcy in Louisiana, individuals must complete credit counseling, prepare and file a number of forms, attend the 341 meeting of creditors, and complete a debtor education course. If you are considering filing for Chapter 7 bankruptcy, it’s important to consult with a bankruptcy attorney to ensure that you understand the process and your options.
Last Updated April 25, 2023