Bankruptcy Exemptions in Louisiana
What property you can keep in bankruptcy in Louisiana: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Louisiana filers must use Louisiana exemptions: in bankruptcy, only property exempt "under the laws of the state of Louisiana and under federal laws other than 11 U.S.C. 522(d)" is exempt. La. R.S. 13:3881(B)(1)
| State or federal exemptions | Louisiana filers must use Louisiana exemptions: in bankruptcy, only property exempt "under the laws of the state of Louisiana and under federal laws other than 11 U.S.C. 522(d)" is exempt. Source: La. R.S. 13:3881(B)(1) |
|---|---|
| Homestead exemption | Up to $35,000 in value of a residence occupied by the owner, with the land and contiguous tracts up to 5 acres inside a municipality or up to 200 acres outside one. For obligations arising directly from a catastrophic or terminal illness or injury (as defined), the full value is protected. Does not apply to purchase-price debts, improvement liens, taxes and certain other debts. |
| Car exemption | $15,000 in equity in one motor vehicle for any purpose; a second vehicle up to $15,000 if the debtor is married or has a licensed-driver child in the household (unless the disability-vehicle exemption is used); and $20,000 in equity in one vehicle per household that is substantially modified for a family member's disability. No more than two exempt vehicles. Value is based on the JD Power Official Used Car Guide retail value. |
| Wildcard exemption | None. Louisiana's exemption list (La. R.S. 13:3881(A)) covers specific property types; no general exemption for property of the filer's choosing was found. Source: La. R.S. 13:3881(A) |
| Retirement accounts | All pensions, tax-deferred arrangements (including IRAs), annuity contracts and payments from them, and health savings accounts up to the IRS family-coverage deduction limit are exempt from all debts except alimony and child support. Contributions made less than one calendar year before filing for bankruptcy are not exempt. Source: La. R.S. 13:3881(D)(1)-(3) |
| Wages | 75% of weekly disposable earnings are exempt, but never less than 30 times the federal minimum hourly wage (different rules apply to child support). Source: La. R.S. 13:3881(A)(1)(a) |
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FAQ
Can you use the federal bankruptcy exemptions in Louisiana?
Louisiana filers must use Louisiana exemptions: in bankruptcy, only property exempt "under the laws of the state of Louisiana and under federal laws other than 11 U.S.C. 522(d)" is exempt.
How much home equity is protected in bankruptcy in Louisiana?
Up to $35,000 in value of a residence occupied by the owner, with the land and contiguous tracts up to 5 acres inside a municipality or up to 200 acres outside one. For obligations arising directly from a catastrophic or terminal illness or injury (as defined), the full value is protected. Does not apply to purchase-price debts, improvement liens, taxes and certain other debts.
Can I keep my car in bankruptcy in Louisiana?
$15,000 in equity in one motor vehicle for any purpose; a second vehicle up to $15,000 if the debtor is married or has a licensed-driver child in the household (unless the disability-vehicle exemption is used); and $20,000 in equity in one vehicle per household that is substantially modified for a family member's disability. No more than two exempt vehicles. Value is based on the JD Power Official Used Car Guide retail value.
Does Louisiana have a wildcard exemption?
None. Louisiana's exemption list (La. R.S. 13:3881(A)) covers specific property types; no general exemption for property of the filer's choosing was found.
Are retirement accounts protected in bankruptcy in Louisiana?
All pensions, tax-deferred arrangements (including IRAs), annuity contracts and payments from them, and health savings accounts up to the IRS family-coverage deduction limit are exempt from all debts except alimony and child support. Contributions made less than one calendar year before filing for bankruptcy are not exempt.
Are wages protected in bankruptcy in Louisiana?
75% of weekly disposable earnings are exempt, but never less than 30 times the federal minimum hourly wage (different rules apply to child support).
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.