On August 23rd of 2005, Hurricane Katrina formed during the Atlantic Hurricane season and devastated New Orleans and all of the Coast of Louisiana. Loss of property and life caused a change in the lives of those living along the coastline. Due to the massive destruction, for those people filing bankruptcy in Louisiana leaner restrictions will be allotted.
The new bankruptcy forms will still be filled out but specific restrictions will be set aside, such as the use of the means test that is now state law. In October of 2005 a bankruptcy act requiring credit counseling and a means test evaluation were passed in several states. These requirements however are being waived in order to show sympathy and to provide aid for the numerous families affected by Katrina.
There are specific assets that are to be exempt. Assets are divided into nine categories including homestead, insurance, miscellaneous, personal property, public benefits, tools of the trade and wages. These exemptions vary between states. Though there are variations on bankruptcy laws and procedures, the overall process is the same. Evaluations are performed where finances including income, assets and debt are reviewed in order to decide on chapter eligibility. Once this is completed a bankruptcy judge will review this information and he or she makes the final decision. Bankruptcy is mainly an administrative process and is completed mostly outside of the physical court. In order to understand your specific eligibility for a bankruptcy claim in Louisiana contact a Louisiana bankruptcy attorney for a free evaluation and bankruptcy guidance.
Bankruptcy gives those who were suffering financial chaos a fresh start, a type of new financial beginning. After bankruptcy has been filed and all of your debts have been discharged you should allow yourself to stop thinking about your credit history and instead focus on your financial present. Law can in fact report bankruptcy on your credit report for a total of 10 years from the filing of your case. Past delinquencies as well as the bankruptcy can be reported on your credit report, but by the Fair Credit Reporting Act, the discharged debts must be reported at a zero balance showing that the debtor no longer has any ties to those past debts. So even though your credit history may show you’re past financial flaws, remember they are PAST financial flaws.
Keeping the focus that you have a fresh start is what should be your drive to keeping your credit clean. Bankruptcy is not a shameful event. There are life occurrences that can lead towards bankruptcy. Letting go of the bankruptcy and discharged debts is the first step in your new beginning. Your next step is to use common sense in how you spend your money. After bankruptcy companies will still send credit cards and loan offers to you. It is wise to distance yourself from debt creators. If you choose to receive a credit card, do so with only a single credit card. Do not max out the cards limit and pay the bill off on time monthly. This will begin a new payment history that will begin a clean credit history. Keep this same focus with all of your spending and payments and your past history will haunt you no more. Your present history will be your focus and will help you to maintain a clean credit goal.