This bill amends and reenacts several provisions of Louisiana's bankruptcy law, specifically R.S. 9:5175, and introduces new sections R.S. 9:5175(C)(2)(h) and 5175.1. The amendments clarify the procedures for obtaining a discharge order in bankruptcy and the subsequent cancellation of judicial mortgages. Notably, the bill allows a judgment debtor to bring an action to declare a judicial mortgage extinguished following a bankruptcy discharge, provided that the underlying judgment was disclosed in the bankruptcy proceedings. It also specifies that if a bankruptcy court order does not detail which liens or judgments are to be canceled, a licensed attorney can file an affidavit to specify these details.

Additionally, the bill includes new requirements for affidavits submitted to cancel judgments, such as a statement of liability for damages incurred by the clerk or recorder due to reliance on the affidavit. The effective date of the bill is contingent upon the governor's signature or the expiration of the time for bills to become law without signature. Overall, the legislation aims to streamline the bankruptcy process and clarify the rights of debtors regarding the cancellation of judicial mortgages.

Statutes affected:
HB580 Original: 9:5175(B)
HB580 Engrossed: 9:5175(B)
HB580 Reengrossed: 9:5175(A)
HB580 Enrolled: 9:5175(A)
HB580 Act : 9:5175(A)