The Louisiana bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Louisiana. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Louisiana you may also use certain federal exemptions in addition to your Louisiana exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD | Property you occupy to $35,000 (cannot exceed 5 acres if in city or 200 acres if not in city) |
20:1 |
Spouse or child of deceased owner may claim homestead exemption; spouse given home in divorce gets homestead | 20:1 | |
INSURANCE | Fraternal benefit society benefits | 22:558 |
Group insurance policies or proceeds | 22:649 | |
Health, accident or disability proceeds or avails | 22:646 | |
Life insurance proceeds or avails; if policy issued within 9 months of filing, exempt only to $35,000 | 22:647 | |
MISC. | Property of minor child | 13:3881A(3), Civil 223 |
PENSIONS | Gratuitous payments to employee or heirs whenever paid | 20:33(2) |
ERISA-qualified benefits if contributions made over 1 year before filing for bankruptcy | 13:388D(1), 20:33(4) | |
PERSONAL PROPERTY | Arms, military accouterments, bedding, linens and bedroom furniture, chinaware, glassware, utensils, silverware, (non-sterling), clothing, family portraits, musical instruments, heating and cooling equipment, living room and dining room furniture, poultry, fowl 1 cow, household pets, pressing irons, sewing machine, refrigerator, freezer, stove, washer and dryer |
13:3881A(4) |
Cemetery plot, monuments | 8:313 | |
Engagement and wedding rings to $5,000 | 13:3881A(5) | |
PUBLIC BENEFITS | Aid to blind, aged disabled , AFDC | 46:111 |
Crime victims' compensation | 46:1811 | |
Unemployment compensation | 23:1693 | |
Workers' compensation | 23:1205 | |
TOOLS OF TRADE | Tools, instrument, books, pickup truck (maximum 3 tons) non-luxury auto and trailer, needed to work | 13:3881A(2) |
WAGES | Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtor | 13:3881A(1) |
For more information on filing bankruptcy in Louisiana explore Louisiana Bankruptcy Law.
