Effect of Bankruptcy Reform Act 2005
in Louisiana
Louisiana's median income is such that most Chapter 7 cases continue to qualify for that level of filing. However, families with income above an arbitrary number will have to file Chapter 13. Earlier in 2009, the median income for a single wage earner in Louisiana was $36,945; for a family of two, $46,741; for three, $52,628; and for four, $66,634. For each additional member of your household in excess of four add $6,900. If the median income is more than your annualized monthly income (average monthly income for the previous three months multiplied by 12), you qualify for Chapter 7 in Louisiana. NOTE THAT THESE AMOUNTS CHANGE AND THERE IS MORE CALCULATION TO DO, INCLUDING DEDUCTIONS ALLOWED: USE THIS FOR A GENERAL IDEA ONLY AS THERE ARE THINGS WE CAN DO WITH THESE NUMBERS TO QUALIFY IN MANY CASES BY DEDUCTING TAXES, HOUSE NOTES AND OTHER PAYMENTS!!!
The major impact will be that in filing your case the specific details will be subject to more stringent requirements. You will have to prove what you earn, account very precisely for income of all kinds, and be extremely careful in showing all your property. You have to provide copies of tax returns to the Trustee going back 2 years before filing and during a Chapter 13, unless you're not required to file tax returns at all.
Car loans may have to be paid IN FULL, while under the old law we could limit payment to the VALUE of the CAR. INCOME will be calculated based on the last six months' income, and EXPENSES for purposes of calculating the Bankruptcy issues may be limited to IRS Guidelines.