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Terms Used In Louisiana Civil Code 1762

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

Examples of circumstances giving rise to a natural obligation are:

(1)  When a civil obligation has been extinguished by prescription or discharged in bankruptcy.

(2)  When an obligation has been incurred by a person who, although endowed with discernment, lacks legal capacity.

(3)  When the universal successors are not bound by a civil obligation to execute the donations and other dispositions made by a deceased person that are null for want of form.

Acts 1984, No. 331, §1, eff. Jan. 1, 1985.