This bill amends and reenacts several provisions of Louisiana's bankruptcy law, specifically R.S. 9:5175, to clarify the procedures for obtaining a discharge of judicial mortgages following a bankruptcy discharge. Key changes include the stipulation that a judgment debtor can bring an action to declare a judicial mortgage extinguished if the underlying judgment was scheduled or disclosed in the bankruptcy proceeding. The bill also introduces new language that allows for the partial cancellation of judgments, mortgages, or privileges when a bankruptcy court order does not specify which should be cancelled. Additionally, it establishes that a Louisiana licensed attorney can file an affidavit to specify which liens or judgments are to be partially cancelled in relation to a property sale authorized by a bankruptcy court.

Furthermore, the bill adds new requirements for affidavits submitted in these cases, including statements regarding the bankruptcy petition, the court where it was filed, and a legal description of the property involved. It also includes provisions for indemnifying clerks or recorders who rely on these affidavits. 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.

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)