How To File Bankruptcy for Free in Louisiana

Collect Your Louisiana Bankruptcy Documents

Filing bankruptcy means gathering a lot of paperwork. Even though it can take a lot of time, it's important to do things right. The earlier in the process you have the needed documents, the easier filing for bankruptcy will be. There are certain documents that you’re required to submit with your bankruptcy petition when you file your case. This is true whether you file on your own or you have an attorney’s help. These documents include your previous two years' tax returns, your paycheck stubs for the last 60 days, and a bank statement that covers the date of your bankruptcy filing. 

There are other documents that you aren’t required to submit when you file your case. But they’re helpful to have as you fill out your paperwork, which asks about your income, expenses, debts, and creditors. They include older bank statements from the past year, a copy of your credit report, all creditor statements and bills, and letters from collection agencies or other third-party debt collectors. Keep in mind, you’re entitled to one free report every 12 months from each of the three consumer credit reporting agencies.

Take a Credit Counseling Course

To make sure that you understand all of your debt relief options, the Bankruptcy Code requires you to take a credit counseling course before you can file your case. You need to complete the course in the 180 days before you file your case. You’ll need to submit a certificate of to the court with your other bankruptcy forms. Be sure to take the course from an approved credit counseling provider. While there’s a course fee, you may be able to waive the fee if you can’t afford it.

Complete the Bankruptcy Forms

Completing all the required bankruptcy forms can be tedious, but it’s entirely doable. The main required forms are federal, which means they’re the same throughout the United States. You can get the required forms as fillable PDFs for free on USCOURTS.gov

If you hire a lawyer, they’ll ask you to fill out a questionnaire and then their office will fill out the forms using the information you provided. Later you’ll review and sign them before the lawyer submits them on your behalf. If you decide to file using Upsolve’s free filing tool, you’ll fill out an online questionnaire, and our software will complete the forms based on your replies.

Get Your Filing Fee

There is a $338 court filing fee for a Chapter 7 bankruptcy. If you can’t afford to pay this amount, you can ask the court for a fee waiver. But keep in mind that if your household income exceeds 150% of the federal poverty guidelines, you won’t qualify for this waiver. (See the Louisiana Fee Waiver Eligibility below).

If you have to file quickly and you can’t afford to pay the $338 in full, you can make a down payment toward the filing fee and ask to pay the rest in installments. The court will tell you how much the down payment and installments will be. Some filers choose to do so they can stop collection actions like wage garnishment. As soon as you file for bankruptcy, an automatic stay goes into effect, and the wage garnishment will stop. 

If you don't have to file quickly, it’s good to wait until you have the full filing fee though. This way you won’t risk having your case dismissed if you’re late with a payment. 

Print Your Bankruptcy Forms

If you’re filing without a lawyer, then you’ll have to print out your bankruptcy forms so you can bring them to the bankruptcy court. 

Important information to remember:

• Use regular, letter-size paper (8.5 x 11 inches).

• Forms must be on white paper with black ink only.

• Don’t print double-sided.

• Sign in all necessary spots.

• Double-check that you have printed everything.

If you’re using Upsolve’s filing tool, you’ll receive all your forms in a single downable packet. Also, everywhere you need to sign will be flagged for you. If you’re filing bankruptcy with the help of a lawyer, they’ll file all the forms for your case electronically. You won’t need to worry about printing them out.

File Your Forms With the Louisiana Bankruptcy Court

Louisiana has three federal bankruptcy districts: the Eastern District, the Middle District, and the Western District. 

If you decide to file for bankruptcy in person, make sure you have everything you need, including: 

• Your bankruptcy forms,

• Your credit counseling certificate, and 

• Your filing fee (or application for a waiver/installment plan),

• And your picture ID. 

Remember, you’re entering a federal court building when filing bankruptcy, so you’ll have to pass through security. Once inside, make your way to the clerk's office, which is where you turn in all of your paperwork. Listen closely and follow any instructions the clerk gives you.

Mail Documents to Your Trustee

After filing Chapter 7 in Louisiana, the court assigns a trustee to administer the case. Depending on who your trustee is you may also receive a written request to provide some additional documents to their office. You have a duty to cooperate with the trustee, so make sure to stay on top of any request you may receive from them. 

Even if you don't receive anything from your trustee, the law requires you to send them the following documents at least seven days before your meeting of creditors:

• Your federal income tax return for the last two years, and

• A bank statement that includes your bankruptcy filing date. 

Also, if you’re in the Middle District, the local rules require that you bring your federal income tax return and your recent paycheck stubs to the creditors’ meeting.

Take a Debtor Education Course

You’re now required to take a second course that covers personal financial management skills and tools. If you don’t complete this course, you aren’t eligible for a discharge. The bankruptcy discharge is the order that wipes out your unsecured debts like credit card debt and medical bills. You need to take the course with an approved provider and file a certificate of completion with the court no later than 60 days after your creditors’ meeting. If you don’t, the court may close your case without discharging your debt.

Attend Your 341 Meeting

The 341 meeting is also called a meeting of creditors. It’s an opportunity for the bankruptcy trustee who’s handling your case to ask you some questions under oath to verify your identity and the information in your petition. They may ask some follow-up questions to clarify anything that wasn’t clear to them when they looked at your paperwork. 

Typically, the date, time, and location of your 341 meeting is listed on the official bankruptcy notice you receive from the court after filing your case. But currently, all 341 meetings are being held via telephone or video conference. This is a COVID-19 precaution and hasn’t been adopted as a standard practice at this time. No matter where or how your meeting is held, be sure to have your picture ID and proof of your Social Security number on you when the meeting takes place. 

Some Chapter 7 filers get stressed out about their 341 meeting. But when it’s over, most people realize that it really wasn't necessary to worry.

Dealing with Your Car

Your options to keep your car when you file Chapter 7 bankruptcy vary based on whether you’re leasing or financing your car or if you own it free and clear.

• If you own your car, Louisiana allows you to keep it as long as your equity in it isn’t more than $7,500 (as a single filer). 

• If you’re leasing your car, you’re current on payments, and you’re able to continue making the payments, you can “assume” the lease. This means you keep the lease and keep making payments as usual. If you’re not current on payments or just want to get out of the lease, you can can “reject” the lease and return the car.

• If you’re financing your car, you must be current on your payments to keep it. You may need to sign a reaffirmation agreement with your lender. This simply “reaffirms” that you’ll keep making payments as normal.

• If you’re not current on your car loan payments, you owe more than the car is worth, or you just want to get out of the loan, you can surrender the vehicle and the loan becomes a dischargeable debt in your Chapter 7 case.

If you decide it’s best not to keep your car, you think about buying a car after bankruptcy. If you give your credit score some time to rebound, you may be able to get a better financing offer.