Find Bankruptcy Lawyers Near You in New Orleans, LA

The cost of hiring a bankruptcy lawyer in Louisiana varies based on the complexity of your case and the chapter you file. For a standard Chapter 7 case, attorney fees in New Orleans typically fall between $1,200 and $2,500. This fee usually covers preparing the petition, schedules, means test, and representing you at the meeting of creditors. Chapter 13 cases are more expensive, with attorney fees ranging from $3,000 to $5,000, because they require drafting a repayment plan, negotiating with creditors, and managing the case over several years. Many attorneys offer payment plans, allowing you to pay in installments before filing. Some may also include the court filing fee of $338 for Chapter 7 or $313 for Chapter 13 in their total fee. Pro bono resources are available for those who meet income guidelines, but they are limited and often have waiting lists. This information is general and does not constitute legal advice; you should consult with a qualified bankruptcy attorney for your specific situation.

Bankruptcy law in New Orleans, Louisiana, provides a legal pathway for individuals and businesses overwhelmed by debt to obtain a fresh financial start. The practice revolves primarily around three chapters of the federal Bankruptcy Code. Chapter 7, often called liquidation bankruptcy, requires the debtor to surrender non-exempt assets to a trustee, who sells them to pay creditors; in return, most unsecured debts are discharged within three to six months. This option is best suited for individuals with limited income and few assets. Chapter 13, or reorganization bankruptcy, allows debtors with regular income to propose a three-to-five-year repayment plan to catch up on secured debts like mortgages or car loans while paying unsecured creditors a portion of what is owed. It is ideal for those who want to keep their home or car but need time to catch up on arrears. Chapter 11, traditionally used by businesses, enables reorganization of debts and operations; however, in Louisiana, individuals with high debt levels exceeding Chapter 13 limits may also file under Chapter 11, though it is more complex and costly. Choosing the right chapter depends on your income, asset value, debt type, and long-term goals.

Louisiana law significantly impacts bankruptcy outcomes because the state has opted out of the federal exemption system, meaning debtors must use Louisiana-specific exemptions when filing for bankruptcy. The most notable is the homestead exemption, which protects up to $35,000 of equity in your primary residence. For married couples filing jointly, this doubles to $70,000. This is lower than many other states, so New Orleans homeowners with substantial equity may face asset liquidation in Chapter 7. The vehicle exemption allows you to protect up to $7,500 of equity in one motor vehicle. Louisiana also offers a wildcard exemption of up to $5,000 for any personal property you choose, such as cash, furniture, or jewelry. Other important exemptions include up to $5,000 in household goods and $2,000 in tools of your trade. These exemptions are codified in Louisiana Revised Statutes Title 13, Section 3881. If you have lived in Louisiana for less than two years, you may be required to use the exemptions of your previous state, which can complicate your case.

The means test is a critical calculation that determines whether you qualify for Chapter 7 bankruptcy. It compares your average monthly income over the six months before filing to the median income for a household of your size in Louisiana. As of 2025, the median annual income for a single-person household in Louisiana is approximately $55,000; for a family of four, it is around $80,000. If your income is below the median, you automatically pass the means test and can file Chapter 7. If your income exceeds the median, you must complete a detailed calculation of your disposable income after subtracting allowed expenses, such as housing, food, and medical costs. If your disposable income over five years is less than $8,000, you may still qualify for Chapter 7. If it exceeds $13,650, you are presumed to have enough income to repay creditors and will be required to file Chapter 13 instead. The means test forms are complex and require careful documentation of all income sources and expenses.

When you file for bankruptcy in New Orleans, the automatic stay goes into effect immediately. This court order stops all collection actions, including phone calls from creditors, wage garnishments, foreclosure proceedings, evictions, and lawsuits. The stay remains in place until your case is closed or the court lifts it for specific reasons. From filing to discharge, a typical Chapter 7 case takes about three to four months. Chapter 13 cases last the duration of your repayment plan, usually three to five years. Before you can receive a discharge, you must complete two mandatory courses: a pre-filing credit counseling session from an approved agency within 180 days before filing, and a post-filing debtor education course on financial management. You must file certificates of completion with the bankruptcy court. The court will then issue a discharge order, which legally eliminates your obligation to pay most discharged debts. Creditors cannot take further action to collect those debts after discharge.

Costs for bankruptcy in New Orleans include court filing fees and attorney fees. The federal filing fee for Chapter 7 is $338, and for Chapter 13 it is $313. These fees can be paid in installments with court approval, but they cannot be waived. Attorney fees vary widely based on the complexity of your case. For a straightforward Chapter 7, fees typically range from $1,200 to $2,500. Chapter 13 attorney fees are higher, usually between $3,000 and $5,000, because of the longer duration and more complex paperwork. Many attorneys offer payment plans, allowing you to pay the fee over several months before filing. Some low-income individuals may qualify for pro bono legal services through organizations such as Southeast Louisiana Legal Services or the New Orleans Bar Association’s pro bono project. These programs have income limits and may not cover all types of bankruptcy cases. It is important to discuss all costs upfront with any attorney you consult.

Life after bankruptcy requires deliberate steps to rebuild your financial standing. A Chapter 7 discharge remains on your credit report for ten years from the filing date; a Chapter 13 discharge remains for seven years. During this time, you can begin rebuilding credit by obtaining a secured credit card, making small purchases, and paying the balance in full each month. You should also create a budget, save an emergency fund, and monitor your credit report for errors. Not all debts are discharged in bankruptcy. Student loans are presumptively non-dischargeable unless you can prove undue hardship in an adversary proceeding, which is difficult to win. Most tax debts from recent years, especially income taxes less than three years old, are not dischargeable. Child support, alimony, and debts from fraud or intentional harm also survive bankruptcy. In Louisiana, debts for personal injury caused by driving under the influence are non-dischargeable as well. Understanding these limits is essential before deciding to file.