McBride Law FirmAlexandria LA Bankruptcy Lawyer | Louisiana Chapter 132026-09-04T17:58:32Zhttps://www.tommcbridelaw.com/feed/atom/WordPress/wp-content/uploads/sites/1402483/2021/12/cropped-favicon-mcbride-32x32.pngOn Behalf of McBride Law Firm<![CDATA[What happens to your bank account after filing for bankruptcy?]]>https://www.tommcbridelaw.com/?p=504792026-08-28T19:20:45Z2026-09-04T17:58:32ZYour bank account remains open
You generally can keep using your checking or savings account after filing for bankruptcy. You can continue receiving your paycheck, paying regular bills and using your money for everyday expenses. Filing does not automatically give the court control over every dollar in your account.
Your account balance gets reviewed
The bankruptcy trustee will review your account information as part of the case. They use this information to determine what property belongs to the bankruptcy estate, which means the money and other property subject to the process. You will need to disclose your accounts and provide the records the court requires.
Exemptions can protect some funds
Louisiana law determines which property and income you can protect when you file. Under Louisiana Revised Statutes Section 13:3881, bankruptcy exemptions generally cover property protected under Louisiana law and certain applicable federal laws. The amount you can protect depends on the type of property and the exemption that applies.
In Chapter 7, the trustee can potentially take the money in the bank or sell nonexempt property to pay creditors. Chapter 13 generally lets you keep your property while you repay some or all of your debts through a court-approved plan.
Your bank may restrict access in some situations
A bank that also holds a debt you owe could sometimes place a hold on money in your account. This situation involves a legal process called a setoff, which allows a creditor in certain circumstances to apply money it owes you toward a debt you owe it.
Understand what happens before you file
Bankruptcy does not automatically mean losing your bank account or all the money in it. Reviewing your account balances, applicable exemptions and your options with an attorney before filing can help you understand how your funds could be treated in your specific case.]]>On Behalf of McBride Law Firm<![CDATA[What should you do if you forgot a creditor in bankruptcy?]]>https://www.tommcbridelaw.com/?p=504742026-08-05T07:10:26Z2026-08-12T07:08:28ZTell your attorney immediately
The first thing you should do is let your attorney know as soon as you discover the missing information in your paperwork. Waiting too long or trying to fix the issue on your own could make the situation more complicated.
Your lawyer can review your case, determine how the omitted creditor may affect it and explain your options. Because every bankruptcy case is different, the appropriate next steps depend on the specific facts of your situation.
Update your bankruptcy paperwork
Many bankruptcy cases allow you to correct information after filing, including adding a creditor when appropriate. Your attorney may be able to amend your bankruptcy schedules so the court and the omitted creditor receive the necessary information.
The process is not the same for every case, so it is important to follow legal guidance.
Understand how the omission could affect your case
Leaving out a creditor can have different consequences depending on your circumstances. For example, they may not receive notice that you filed for bankruptcy, which can change how the bankruptcy process affects that debt.
The outcome may also depend on other factors such as the type of bankruptcy you filed and when you discovered the mistake. Your attorney can explain what those factors mean for your situation and whether you should take any additional steps.
Keep your case on track
If you realize you forgot to include a creditor, avoid guessing about what to do next and seek legal guidance as soon as possible. Getting the right advice early can help ensure you correct the omission properly and reduce the risk of avoidable problems later in your case.]]>On Behalf of McBride Law Firm<![CDATA[Can bankruptcy leave you homeless in Louisiana?]]>https://www.tommcbridelaw.com/?p=504712026-08-03T13:59:48Z2026-08-10T09:34:53ZWhat happens when you file for bankruptcy
Bankruptcy is a legal process that allows you to eliminate or repay debts with federal protections. The US designed the process to provide financial relief and help debtors find footing and bounce back from a crisis.
You must first fulfill criteria to file for either Chapter 7 or Chapter 13 bankruptcy. Bankruptcy eligibility depends on your income and debt level. A court oversees payment plans and liquidation of assets to ease debt. Bankruptcy may help you explore the best legal options for repaying your financial obligations.
Is my home in danger of bankruptcy risks?
Some may hesitate to file for bankruptcy in fear of having to liquidate their home and other important assets. Federal law mostly dictates bankruptcy cases regarding rules and requirements. However, because Louisiana has “opted out” of federal exemptions, filers must use Louisiana state exemptions to protect their property.
Exemptions are assets or property that you are allowed to keep in bankruptcy. In Louisiana, exemptions can protect your property from creditors. State law can shield $35,000 of home equity. Your home must be a primary residence and fulfill home area eligibility requirements.
How to file for bankruptcy
Under current bankruptcy laws, a court will examine your income and expenses to determine whether you qualify for Chapter 7 bankruptcy or if you need to file for Chapter 13.
You begin filing for bankruptcy when you gather financial information such as your sources of income and major financial transactions. You will also need to list all your current assets, ongoing debts, monthly expenses and more. Bankruptcy forms may require you to describe your financial situation in detail.
It is advisable to reach out for assistance before filing your petition. A legal professional with knowledge on debts can assist you in navigating the complex legalities of bankruptcy.]]>On Behalf of McBride Law Firm<![CDATA[Do you make too much money to file bankruptcy in Louisiana?]]>https://www.tommcbridelaw.com/?p=504692026-07-06T14:48:21Z2026-07-13T08:01:04ZWhy having a job does not automatically disqualify you
You do not need to be unemployed or have very little income to file for bankruptcy. Many people who consider bankruptcy work full time and still find themselves overwhelmed by debt. Some financial obligations that can make debt difficult to manage include:
Paying large medical bills
Carrying high credit card balances
Making expensive mortgage payments
Covering vehicle loans or repair costs
Supporting children or dependent family members
These obligations can consume a substantial part of your monthly income. Even with a regular paycheck, you may struggle to keep up with debt payments while meeting your everyday expenses.
How the bankruptcy means test works
If you are considering Chapter 7 bankruptcy, you will likely complete a means test. The means test compares your household income to Louisiana's median income for a household of the same size.
If your income falls below the median, qualifying for Chapter 7 may be more straightforward. If your income exceeds the median, that does not automatically prevent you from filing. The means test also evaluates certain living expenses and financial obligations before determining eligibility.
Why your expenses matter
Your income does not always reflect your financial circumstances. Two households can earn the same amount of money and still face very different financial demands because their expenses and obligations differ. Some expenses that the means test may consider include:
Rent or mortgage payments
Medical expenses
Transportation costs for work and family needs
Childcare expenses
Child support obligations
These expenses can influence whether you qualify for Chapter 7 bankruptcy. As a result, some people whose income exceeds Louisiana's median still qualify for bankruptcy relief.
What if you do not qualify for Chapter 7?
Chapter 7 is not the only form of bankruptcy available. Some people who do not qualify for Chapter 7 may still qualify for Chapter 13 bankruptcy.
Chapter 13 uses a court-approved repayment plan to address certain debts over time. It can provide an alternative for people who need additional time to catch up on mortgage payments or resolve past-due debts while retaining important property.
Why income alone does not answer the question
When debt becomes overwhelming, it is easy to assume that a steady income places bankruptcy out of reach. Bankruptcy eligibility usually depends on more than a single income figure.
Household size, necessary expenses and financial obligations can all affect whether you qualify. For many people in Louisiana, earning a steady income does not automatically mean they make too much money to file for bankruptcy.]]>On Behalf of McBride Law Firm<![CDATA[How long does a bankruptcy affect my credit?]]>https://www.tommcbridelaw.com/?p=504652026-06-09T16:18:16Z2026-06-16T10:29:58ZIf you are filing for bankruptcy in Louisiana, one of the first questions on your mind is probably how long is this going to follow you. The answer depends on what type of bankruptcy you file.
The two types of bankruptcy
Most individuals file one of two kinds. Knowing the difference matters because each one affects your credit differently.
Chapter 7 bankruptcy: This wipes out most unsecured debts (like credit cards and medical bills) usually within four to six months.
Chapter 13 bankruptcy: This sets up a three- to five-year repayment plan before the court discharges your debts.
Your income and circumstances determine which one makes more sense for you. Filing under the wrong chapter could lead to a longer financial recovery, so the decision deserves careful thought.
How long does it stay on your credit report?
The Fair Credit Reporting Act governs how long public records stay on your report. While the Consumer Financial Protection Bureau oversees these rules, the credit bureaus automate the timelines themselves:
A Chapter 7 filing can remain on a credit report for up to 10 years after the bankruptcy case begins.
A Chapter 13 bankruptcy stays on your credit report for 7 years from the filing date.
Although those timelines may seem long, bankruptcy does not permanently block access to credit or financial opportunities.
What does this mean in real life?
A bankruptcy on your report does not mean you lose access to credit for a decade. These habits can jumpstart your recovery:
Opening a secured credit card
Making all payments on time
Keeping credit utilization low
Monitoring their credit reports
Small, consistent habits go a long way in showing lenders you are back on solid ground. Over time, these habits can show lenders that you are managing your financial problems responsibly.
Your financial future does not stop here
Bankruptcy is serious, but it is not the end of the road. How quickly you recover comes down to the decisions you make at the very beginning. Getting the right guidance early — understanding which chapter to file and how to protect your assets — can make a real difference on the other side.]]>On Behalf of McBride Law Firm<![CDATA[Can medical debt put your home at risk?]]>https://www.tommcbridelaw.com/?p=504632026-05-21T14:54:32Z2026-05-21T14:54:32ZHow medical debt can lead to mortgage trouble
A medical crisis can create financial pressure in several ways, especially if hospital bills increase while income drops and regular expenses like mortgage payments still come due. Some families use savings to cover treatment costs, while others rely on credit cards to pay for groceries, utilities or other household needs.
As debt grows and income becomes tighter, mortgage payments can become harder to keep up with. What begins as a health emergency can turn into a housing problem when household income no longer covers both medical costs and regular monthly bills.
What can happen after missed mortgage payments
Missing a mortgage payment does not usually lead to foreclosure right away, but lenders and creditors may respond in several ways, including:
Charging late fees
Reporting missed payments to credit bureaus
Sending default notices
Beginning foreclosure proceedings after continued nonpayment
Pursuing collection efforts for unpaid medical debt
Foreclosure and medical debt collection usually follow separate legal processes, but they can happen at the same time when medical bills contribute to mortgage problems.
Mistakes that can make the problem worse
Financial pressure can lead people to make decisions that create new debt or put other assets at risk. Some common situations include:
Cashing out retirement funds to cover short-term bills
Taking on high-interest loans to make payments
Paying medical bills while mortgage payments continue to fall behind
Ignoring notices from the mortgage lender
Waiting until foreclosure proceedings have already started
Medical debt is generally unsecured debt, while a mortgage is secured by the home itself. Because the law treats these debts differently, one financial problem can create pressure in another area.
What legal options may come into play
Mortgage lenders sometimes offer repayment plans, forbearance or loan modification in certain situations. These programs can change how a lender addresses missed mortgage payments, depending on the homeowner’s circumstances and the lender’s requirements.
Bankruptcy may also affect both foreclosure proceedings and collection activity in some cases. For example, bankruptcy law includes an automatic stay, which can temporarily stop certain collection efforts and legal actions. Some types of bankruptcy may also address unsecured debts, including medical bills, under federal bankruptcy law.
Falling behind does not always mean losing your home
Falling behind on mortgage payments because of medical debt can feel like one problem turning into several at once. Hospital bills, missed income and overdue mortgage payments can create pressure that affects nearly every part of your financial life.
Missed payments do not automatically lead to the same outcome in every case. Mortgage delinquency, debt collection and foreclosure can depend on many factors, including how far behind the payments are and what legal or financial circumstances apply. For many families, a medical crisis creates serious financial strain, but it does not always mean the situation is beyond repair.
]]>On Behalf of McBride Law Firm<![CDATA[¿Una bancarrota es información pública en Louisiana?]]>https://www.tommcbridelaw.com/?p=504532026-04-13T13:52:38Z2026-04-20T13:51:40ZEl acceso a los registros judiciales federales
La quiebra es un proceso que se lleva a cabo en una corte federal. Bajo la ley federal, los expedientes judiciales son, por norma general, registros públicos. Esto significa que cualquier persona con acceso al sistema PACER (Public Access to Court Electronic Records, por sus siglas en inglés) podría ver su solicitud.
Sistemas de búsqueda: PACER requiere una cuenta de usuario y tiene una política de exención de tarifas. Esto quiere decir que si alguien consulta menos de $30 en registros en un trimestre, el acceso es gratuito. No obstante, el público general rara vez utiliza esta herramienta para revisar casos personales.
Información protegida: Aunque el expediente es público, la ley protege datos sensibles. Los números de Seguro Social y los números de cuentas bancarias se redactan parcialmente para evitar el robo de identidad.
Publicaciones en periódicos: A diferencia del pasado, las cortes de Louisiana ya no publican bancarrotas de quiebras personales en los periódicos locales de Alexandria, a menos que se trate de un caso corporativo de alto perfil.
El hecho de que la información sea pública no significa que el sistema esté diseñado para exponer su situación financiera ante la comunidad.
¿Quién se enterará de mi solicitud de bancarrota?
Aunque el público en general rara vez busca estos registros, existen entidades específicas que recibirán una notificación oficial de la corte:
Sus acreedores: Todas las personas o empresas a las que usted les deba dinero serán notificadas para que cesen los esfuerzos de cobranza.
El fiduciario de la bancarrota: Un oficial encargado de supervisar su caso y revisar sus activos y gastos.
Empleadores (en casos específicos): Si usted presenta una quiebra bajo el capítulo 13, su empleador podría ser notificado para deducir el pago del plan de su nómina, aunque no tienen derecho legal a despedirlo por esta razón.
La bancarrota es una herramienta legal diseñada para otorgar un nuevo comienzo financiero, no para castigar al deudor. Si bien es un registro público, la gran mayoría de las personas en su círculo social nunca se enterarán a menos que usted decida compartir la información. Consultar con un abogado le permitirá proteger su privacidad al máximo y navegar el proceso con la discreción que su familia merece.]]>On Behalf of McBride Law Firm<![CDATA[Will medical debt ruin your credit forever?]]>https://www.tommcbridelaw.com/?p=504482026-04-21T13:32:13Z2026-04-16T10:14:47ZA health crisis is stressful enough without the added weight of financial anxiety. What might worry you is becoming bankrupt due to high medical costs. Thankfully, Louisiana's new Medical Debt Protection Act ensures that your recovery doesn't come at the cost of your credit score or your home. The blog explains the details and how it works.
Does every medical bill show up on your credit report?
The three major credit bureaus no longer report any medical debt under $500. For larger bills, you have a significant waiting period. Credit bureaus generally will not list medical debt until it is at least 365 days past due. This gives you a full year to set up a payment plan before it affects your credit score.
What are the rules for you as a Louisiana resident?
Louisiana has specific legal timelines. New legislative protections add extra layers of safety. These include:
The 3-year limit: Creditors generally have three years from the date the bill was due to sue you for the debt.
The 2026 Protection Act: This limits the interest on debt for medically necessary care to 2% per year.
Asset protection: Collectors cannot seize your primary home or vehicle to pay for medically necessary bills.
Understanding these laws helps you make better decisions. It also helps you decide which bills to prioritize.
How can you get medical debt removed?
Medical debt often follows a different set of rules than other types of debt. If it is currently hurting your score, follow these steps:
Pay or settle: Current Consumer Financial Protection Bureau (CFPB) rules require lenders to remove paid medical debt from your credit report.
Dispute small balances: If you see a bill under $500 on your report, file a dispute atAnnualCreditReport.com.
Request itemized bills: Always ask for a detailed list of charges to verify billing accuracy.
These steps keep your credit report accurate. Regular monitoring helps you catch errors and unfair reporting.
Why you benefit from an attorney
Debt collectors may still act aggressively. An attorney can stop harassment and protect your rights under Louisiana law. They can challenge illegal collection attempts and negotiate settlements. This support helps protect your credit and gives you a fresh financial start.]]>On Behalf of McBride Law Firm<![CDATA[Will I lose my car in a personal bankruptcy?]]>https://www.tommcbridelaw.com/?p=504502026-03-26T02:08:42Z2026-03-26T02:08:42ZYour car gets you to work, helps you take care of your family and keeps your life running in Alexandria, Louisiana. When you consider filing bankruptcy, one of the biggest fears is losing your vehicle. Whether you can keep your car in bankruptcy depends on how much equity you have in it, whether you still owe money on it and which type of bankruptcy you file.
How Louisiana exemptions protect your vehicle
Under Louisiana Revised Statutes Section 13:3881, Louisiana law allows you to exempt up to $7,500 in vehicle equity. Equity represents your car's current value minus your outstanding loan balance. For example, a $10,000 car with a $5,000 loan balance gives you $5,000 in equity.If your equity is less than $7,500, you can typically keep your car in Chapter 7 bankruptcy. If your equity exceeds this amount, the bankruptcy trustee may sell your vehicle to pay your creditors. You would receive the $7,500 exemption amount, but you would lose the car.Louisiana House Bill 135, currently moving through the 2026 legislative session, proposes to increase this exemption to $15,000. The bill would also allow families to protect a second vehicle (up to $15,000 in equity) if you are married or have a licensed driver child in your household. The timing of your bankruptcy filing may determine whether you can use the current $7,500 limit or the proposed $15,000 limit if the bill passes.Understanding exemptions is important, but they only protect equity you own outright.
What happens if your car is still on loan
If you have a car loan, you must stay current on your payments to keep the vehicle. Chapter 7 bankruptcy eliminates your personal debt, but the lender still has a lien on the car. Falling behind on payments allows the lender to repossess the vehicle even during bankruptcy.Chapter 13 bankruptcy provides additional solutions for those struggling with car loan payments. Your repayment plan allows you to make up overdue payments gradually over a three to five year period. This approach may save a vehicle that would otherwise face repossession.
Why understanding your options matters
Filing bankruptcy without understanding exemptions can result in losing assets you could have protected. The value of your car, the amount you owe and your payment history all affect whether you can keep it. An experienced bankruptcy attorney can review your situation and explain which chapter protects your vehicle while giving you debt relief. The vehicle that carries you to work every day can either stay in your driveway or disappear to pay your debts, depending on choices you make before you file.]]>On Behalf of McBride Law Firm<![CDATA[Restarting the same business after filing for bankruptcy]]>https://www.tommcbridelaw.com/?p=504442026-02-23T08:12:14Z2026-02-23T08:12:14ZThe impact of your bankruptcy chapter on restarting
The chapter you filed under plays a significant role in whether your original business can continue. Each chapter treats assets and debts differently, which directly affects your ability to restart:
Chapter 7: This chapter sells the business’s assets to pay creditors. Most businesses cannot continue operating after this process.
Chapter 13: This chapter helps sole proprietors with steady income keep the business running while they repay debts over three to five years.
If you filed Chapter 11 and the court confirmed your plan, your business may already move toward recovery. By contrast, if your business went through Chapter 7, you will likely need to form a new legal entity with the Louisiana Secretary of State to resume operations and separate the new business from the old debts.
The timing restrictions under federal and Louisiana law
Federal bankruptcy law sets specific waiting periods that determine when you can qualify for a discharge in a second bankruptcy. You can file sooner to access other court protections, but the discharge timelines work like this:
Chapter 7 to Chapter 7: You must wait for at least eight years from your previous filing date before receiving another discharge.
Chapter 7 to Chapter 13: You must wait four years from the date of your prior Chapter 7 filing.
Chapter 13 to Chapter 13: You must wait two years from your previous filing date before receiving a discharge in another Chapter 13 case.
Chapter 13 to Chapter 7: You must maintain a six-year gap unless you paid 100% of unsecured claims in your prior plan, or at least 70% under a good-faith plan.
Louisiana follows the federal Bankruptcy Code directly, so these same timelines apply to every resident across the state. That said, the state maintains its own exemption laws that determine what property you get to keep when you start the process over.
The importance of credit recovery and financing after discharge
Rebuilding your credit after bankruptcy takes time, but it remains an important step toward securing financing for your restarted business.
You may find it helpful to separate your personal finances from your business finances. This can be done by applying for an Employer Identification Number and opening a dedicated business bank account. Together, these give your revived company its own financial identity in the eyes of lenders and vendors.
You might also consider secured credit cards and small vendor credit lines. Both tools let you show a consistent record of on-time payments without requiring strong credit upfront.
Over time, that steady track record builds your profile and puts larger funding within reach, including loans backed by the U.S. Small Business Administration. Keep in mind that lenders evaluate those applications individually, so the stronger your history looks, the better your position will be.]]>