This bill amends and reenacts several provisions of Louisiana's bankruptcy law, specifically R.S. 9:5175, to clarify the procedures for obtaining bankruptcy orders and discharges. Key changes include the introduction of new language that allows a judgment debtor to bring an action to declare a judicial mortgage extinguished following a bankruptcy discharge, provided that the judgment was scheduled or disclosed in the bankruptcy proceeding. The bill also specifies that if a bankruptcy court order does not detail which liens, judgments, or mortgages are to be cancelled, a Louisiana licensed attorney can file an affidavit to specify these details.

Additionally, the bill enacts R.S. 9:5175.1, which outlines the requirements for an affidavit to be filed when a bankruptcy court order authorizes the sale of property free and clear of liens and judgments. This affidavit must include specific information such as the court where the bankruptcy was filed, the date of the petition, and a statement confirming that the debts were listed in the bankruptcy proceeding. The bill aims to streamline the process for debtors seeking to clear their financial records post-bankruptcy and to ensure that all parties involved are adequately informed and protected.

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)