Senators Landrieu And Vitter Vote To Reject Mortgage Cram Down Bill!

Posted on May 1, 2009 by Kevin Gipson, Attorney at Law

Louisiana Senator Mary Landrieu and Senator David Vitter both voted today to reject the Helping Families Save Their Homes Act of 2009.

This bill would have permitted bankruptcy judges to modify home mortgages to allow families to keep their homes.

With major corporations and banks getting bailed out, it is inconceivable that the same rights that a corporation has in a Chapter 11 bankruptcy to restructure its debt is not going to be made available to consumer debtors in Chapter 7.

If you or someone you know has tried to get a mortgage modification and has been rejected, or is at risk of losing their home to foreclosure, let Senator Landrieu and Senator Vitter know that it was within their power to give this mortgage modification authority to bankruptcy judges.

by , New Orleans, Louisiana bankruptcy lawyer.

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Can I Keep My Car If I File For Bankruptcy?

Posted on April 22, 2009 by Kevin Gipson, Attorney at Law

car-repossession-laws

Will you be able to keep your car if you file for bankruptcy in Louisiana?  In most cases, the answer is yes!

First, in any bankruptcy proceeding, the debtor can keep the items of property that he owns that are “exempt” from seizure.

Louisiana has its own set of exemptions as do many other states.

Under the Louisiana exemptions, a vehicle that is used for transportation for employment is exempt up to a value of $7,500.00.

So what if the car is worth more than $7,500.00 or if I own more than one car?   What will happen?

The answer will depend on the value of the car and also on whether there is a collateral mortgage (lien) on the car.

If a car is of little value, the trustee may not believe that it is worth the trouble to seize the car and sell it.   So if the car is an older, high mileage car, the trustee may find that it is “not worthy of administration”.

Also, if a car already has a mortgage on it, then the car will usually not be of any value to your unsecured creditors, since the car is often worth less than is owed on it.   This is often referred to as the vehicle being “encumbered beyond its value”.

You should meet with an experienced bankruptcy attorney to discuss the treatment of your vehicles.

by , New Orleans, Louisiana bankruptcy lawyer.

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What Documentation Does An Adult First Time Applicant For A Louisiana Driver’s License Need To Bring?

Posted on April 21, 2009 by Kevin Gipson, Attorney at Law

 The type of documentation needed by a first time applicant to get a Louisiana driver’s license will depend upon whether the applicant is a new driver or is already licensed in another state. 

 A first time applicant over the age of 18 will need to bring the following documentation: 

 

  • One primary and two secondary documents; or, 
  • Two primary documents; or,
  • If the applicant already has a Louisiana identification card/driver’s license with a photo which clearly identifies the applicant and the Social Security Number is part of the file, additional identification is NOT required.

Out-of-state applicants for a Louisiana driver’s license must provide all of the following:

  • The out-of-state license;
  • One primary document; and
  • Their Social Security Number.

Primary Documents include any of the following documents:  

  • A certified copy of birth certificate (long form), original certificate of birth (does not have to have seal), birth registration card or certificate issued by a state or county bureau of vital statistics with raised agency seal, birth card (short form).
  • A passport, appropriately stamped and accompanied by proper immigration documents.
  • Permanent Resident Card (I-551)
  • Certificate of naturalization:
  • Certification of birth abroad issued by the United States Department of State.
  • Native American tribal document.
  • The Department of Homeland Security Refugee travel document (I-571).
  • The Department of Homeland Security Permit to reenter the United States (I327).
  • Employment/work authorization document issued by The Department of Homeland Security (I-688B or I-766).

 The Louisiana Department of Motor Vehicles lists 38 different types of Secondary Documents.  I have listed the top five here:

 

  • Out-of-state driver’s license with a photo which clearly identifies the individual–an official copy of driving record from last state of issuance will be required when the applicant has lost his out-of-state license. NOTE–Any foreign driver’s license must be accompanied by proper immigration documents.
  • Social Security card or official written documentation verifying the Social Security Number from the Social Security Administration or specifying that no number has been assigned or that the applicant is ineligible for an SSN.
  • Student I.D. card for a Louisiana college or university when accompanied by a 100% fee paid receipt for the current semester.
  • Original of a high school, college or university diploma.
  • Original documents of adoption papers.

 For additional information regarding the requirements to obtain a Louisiana driver’s license, please visist the Louisiana Office of Motor Vehicles.

by , New Orleans, Louisiana bankruptcy lawyer.

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What Is A Chapter 13 Bankruptcy?

Posted on April 20, 2009 by Kevin Gipson, Attorney at Law

A Chapter 13 Bankruptcy is generally used by a debtor who is behind on payment of a secured debt such as a mortgage or a car note.  The debtor using a Chapter 7 bankruptcy creates a payment plan to catch up on the past due debt.

A Chapter 13 bankruptcy is also sometimes referred to as a “Wage Earner” bankruptcy since the debtor has to propose a plan of how he will use his income to pay the past due amount (also called an arrearage).   Without a source of income a Chapter 13 bankruptcy plan cannot succeed.

The debtor in a Chapter 13 bankruptcy must show he has enough money to keep the secured debt current and at the same time provide for payment of the arrearages on the secured debt.

Depending upon the amount of income the debtor has, he may also be required to pay some or all of the debt that he also owes to his unsecured creditors.

A Chapter 13 bankruptcy will usually take 36 to 60 months to complete.  If the Chapter 13 bankruptcy is successfully completed, the debtor receives a discharge of his debts.

Before Congress change the bankruptcy code with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) it was rare that a debtor would file for a Chapter 13 bankruptcy unless he was at risk of losing a house to foreclosure or a car to repossession to file for a bankruptcy.  With the enactment of BAPCPA a small percentage of people with income above the median income for their are now required to file a Chapter 13 bankruptcy.

As with a Chapter 7 bankruptcy, certain debts, such as taxes and court ordered child support obligations cannot be discharged in bankruptcy.

The decision to file for bankruptcy and the type of bankruptcy to file are important decisions.   You will want to hire an experienced bankruptcy attorney to assist you in making this decision.

by , New Orleans, Louisiana bankruptcy lawyer.

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What Is A Chapter 7 Bankruptcy?

Posted on April 20, 2009 by Kevin Gipson, Attorney at Law

A Chapter 7 Bankruptcy allows a debtor to get rid of most of their debts.

A Chapter 7 bankruptcy is also sometimes referred to as a “Fresh Start” bankruptcy since the debtor receives a discharge of his unsecured debts such as credit card bills, medical bills and any other debt that is not secured by a mortgage or collateral mortgage.

The Chapter 7 bankruptcy debtor is also given the option of continuing to pay on his secured debt (such as a home loan) if he is current on the debt, or he can surrender the property and be relieved of further obligation on the debt.   As a result, a Chapter 7 debtor can keep a house or car that is secured by a mortgage.

However, certain debts, such as taxes are cannot be discharged in bankruptcy.

The decision to file for bankruptcy and the type of bankruptcy to file are important decisions.   You will want to hire an experienced bankruptcy attorney to assist you in making this decision.

by , New Orleans, Louisiana bankruptcy lawyer.

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I Live In Louisiana! Do I Need A Will Since Louisiana Has Forced Heirship?

Posted on December 31, 2006 by Kevin Gipson, Attorney at Law

Do I need a will? I am asked this question many times a month.

For most people living in Louisiana the answer is yes.

The laws of Forced Heirship have been changed to allow more flexibility in determining how you dispose of your property at the time of your death.

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