Louisiana Bankruptcy Laws
Louisiana Laws That Keep Creditors' Hands Off Your Property
If you’re living in Louisiana and struggling to make ends meet, you may benefit from the protection that personal bankruptcy can offer.
The United States Bankruptcy Code outlines two types of bankruptcy for individuals and families: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
This page is designed to help you learn the basics about both chapters and move forward when you’re ready.
Talk to Louisiana Bankruptcy Lawyer About Your Options
If you’d like to speak with a Louisiana bankruptcy lawyer right away, you can start the process by filling out the below free case evaluation or by calling us at 877-349-1309.
Louisiana Bankruptcy Law
Bankruptcy laws vary from state to state and a local Louisiana bankruptcy lawyer is a good resource who may better help you understand your state’s laws.
Below is some basic information about filing personal bankruptcy in Louisiana.
Chapter 7 Bankruptcy in Louisiana
You may have heard Chapter 7 bankruptcy referred to as “liquidation” bankruptcy. This is because a Chapter 7 trustee can liquidate (sell) a filer’s non-exempt assets. That money is then used to repay creditors.
But don’t worry: Louisiana bankruptcy law outlines many exempt assets -property that can’t be sold in bankruptcy - so you can hang on to many of your important belongings.
Homestead
Up to $25,000 for a home or up to 200 acres of land not in a municipality.
Wages
75 percent of your disposable income.
Automobiles
One vehicle worth up to $7,500.
Personal Property
- 100 percent of the value of trade and business tools, instrument and books.
- 100 percent of the value of clothing, furniture, appliances and household items.
- $5,000 in the value of wedding and engagement rings.
Chapter 13 Bankruptcy in Louisiana
Chapter 13 bankruptcy is also known as “reorganization” bankruptcy because it allows filers to reorganize their debts in order to get current on past-due balances.
Chapter 13 filers make payments to their creditors over a three- to five-year period. This type of bankruptcy is usually better for filers who have a steady income or have a lot of equity in their home and have been hit with an unexpected financial setback.
Filers looking to prevent or stop foreclosure also tend to file under Chapter 13 because the automatic stay in bankruptcy prevents all collection action (including foreclosure) for the duration of the case.
Questions? Talk to a Louisiana Bankruptcy Attorney
Whether you’re interested in learning more about stopping the foreclosure of your home, figuring out which of your belongings are exempt under Louisiana law or getting started on a bankruptcy filing, you may benefit from speaking with a bankruptcy lawyer practicing in your area of Louisiana.
To connect with a Louisiana bankruptcy attorney, all you have to do is fill out the free bankruptcy case review form on this page or call us toll-free at 877-349-1309.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.
Read the complete Louisiana Bankruptcy code.
