What Are The Louisiana Bankruptcy Exemptions?
Louisiana law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it’s wise to consult with a Louisiana bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in Louisiana. In general, the major Louisiana bankruptcy exemptions include:
|GENERAL LOUISIANA EXEMPTIONS|
|Real Estate (the Homestead Exemption)
Up to $25,000 in value is protected.
One motor vehicle valuing up to $7,500 is protected.
100 percent of the value of tools, instruments, and books used in a trade or business; 100 percent of the value clothing, furniture, appliances, and related household items; and $5,000 in the value of wedding and engagement rings.
|View the complete list of Louisiana bankruptcy exemptions|
Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.
Which state’s exemption laws apply in your bankruptcy?
Generally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.
If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.
If application of the preceding general rules renders you ineligible for exemptions under any state’s laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.
Is Louisiana a community property state?
Yes, Louisiana is a community property state. Because it is a community property state, you are responsible for any debts that your spouse incurred while you were married. You are therefore equally liable for your spouse’s debts even if you did not voluntarily assume liability for them by, for example, cosigning for a loan given to your spouse.
How did your senator vote on the new bankruptcy laws?
Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005″ (BAPCPA). How did your Senators vote on these largely pro-creditor provisions?
Landrieu (D-LA) — YEA
Vitter (R-LA) — NAY
Louisiana Bankruptcy Court Locations:
U.S. Bankruptcy Court
Hale Boggs Federal Building
500 Poydras Street, Suite B-601
New Orleans, LA 70130
707 Florida Street
Baton Rouge, LA 70801
Western District of Louisiana Bankruptcy
300 Fannin Street Suite 2201
Shreveport, Louisiana 71101
Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.
Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.