Hire a New Orleans bankruptcy attorney of Total Bankruptcy.
Total Bankruptcy may be able to help you find an experienced New Orleans bankruptcy attorney to help protect you from your creditors and give you a fresh start. A sponsoring New Orleans bankruptcy attorney should work hard to help provide you with all the resources you need to become educated about your legal options and to take back control of your life.
» Back to Locations Map |
By hiring a New Orleans bankruptcy attorney you are beginning the process of healing. You are starting a new phase of your life and rebuilding your credit. You are not alone in needing the services of a qualified Louisiana bankruptcy attorney. More and more people are finding themselves in debt due to a combination of unforeseen events including divorce, medical bills and high interest on credit card payments.
It is important that you act quickly
Both the Senate and House have passed the Bankruptcy Abuse Prevention & Consumer Protection Act of 2005, which revamps the entire U.S. Bankruptcy Code. The result was a significant change in how your lawyer is able to handle your Chapter 7 and Chapter 13 filings.
The most punitive part of the law is the "Means Test". This makes it far more difficult for debtors to prove that they are not able to pay their debts. First, the court should determine whether, after deductions for certain essential living expenses from the debtors' income, they may be able to afford to pay 25 percent of their non-priority unsecured debts including credit card bills. The "Means Test" then compares the debtor's income against the median income of the state in which they are filing. If a debtor's income is above the median specified level, the debtor is not permitted to file under Chapter 7. If the debtor's median income is below the state's median, but the debtor is able to pay 25 percent of their unsecured debt, the debtor is not permitted to file under Chapter 7. The debtor then should be required to file under Chapter 13, which requires the debtor to enter into a repayment plan rather than simply liquidation.
In determining the debtor's income and what the debtor may be able to afford to pay, the court does not look at actual expenses. The court will determine expenses based on living standards established by the IRS. The expenses that the court will apply could be much lower than actual expenses, thus making it appear that the debtor is able to afford a Chapter 13 repayment plan, when in fact they may not be able to. Under this new law, if the court determines that the debtor's income is sufficient to pay off his or her debts, then the court will presume that the Chapter 7 case is abusive, and it will then have the option to convert the Chapter 7 case to a Chapter 13, or even to dismiss it outright. In addition, the court may sanction both the debtor and his or her legal representative.
Call Total Bankruptcy for a free evaluation at 1-877-349-1309 or fill out our online evaluation form to make an appointment to speak with one of our legal representatives.
Click Here For a Free Bankruptcy Evaluation
The purpose of this web site is to help you learn everything you need to know about bankruptcy, the process, your bankruptcy attorney and your legal rights. The best place to start is with the U.S. Bankruptcy Code. It delivers protection to people in financial jeopardy who are suffering under mountains of debt. Bankruptcy is your legal right.