Louisiana Debt Collection Laws: Time Limits, Garnishment and Your Rights
Louisiana debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Louisiana
- Time limit to sue on a written contract
- 10 years for most contract claims ('personal actions'), whether the contract is written or oral, unless a shorter period applies. Debts on money lent and on open accounts have a shorter 3-year period. La. C.C. art. 3499; art. 3494
- Wage garnishment limit
- 75% of weekly disposable earnings is exempt, and never less than 30 times the federal minimum hourly wage per week (prorated for other pay periods). This matches the federal limit. La. R.S. 13:3881(A)(1); La. R.S. 13:3921
- Money protected in a bank account
- No general bank account exemption. Specific funds are protected, including pensions, IRAs and other tax-deferred accounts, health savings accounts (up to the IRS family-coverage annual limit), the federal earned income tax credit and the refundable child tax credit. La. R.S. 13:3881(A)(6), (D)
- Answering a debt lawsuit
- In district court, file an answer within 21 days after service of the citation, or within 30 days if discovery requests were served with the petition. The court may grant more time. La. C.C.P. art. 1001; Attorney General's Guide to Louisiana Justice of the Peace Courts
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 10 years for most contract claims ('personal actions'), whether the contract is written or oral, unless a shorter period applies. Debts on money lent and on open accounts have a shorter 3-year period. Louisiana calls limitation periods 'liberative prescription.' Art. 3494: https://legis.la.gov/Legis/Law.aspx?d=110518 Source: La. C.C. art. 3499; art. 3494 |
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| Time limit for credit cards and open accounts | 3 years for an action on an open account, on money lent, or for unpaid rent. Whether a particular credit card debt is treated as an open account or money lent (3 years) or another personal action (10 years) depends on the facts and court decisions. Source: La. C.C. art. 3494(2)-(4) |
| Can a payment restart the clock? | Yes. Prescription (the limitations period) is interrupted when the debtor acknowledges the creditor's right, and a new period begins. What counts as an acknowledgment (for example, a partial payment or a written promise) is decided by the courts. Source: La. C.C. art. 3464 |
| How long a judgment lasts | A Louisiana money judgment expires 10 years after it is signed (or after it becomes final if appealed). Before it expires, the creditor can revive it by filing a motion with an affidavit that it has not been paid; each revival gives another 10 years, and a judgment can be revived as often as needed. C.C.P. art. 2031: https://legis.la.gov/Legis/Law.aspx?d=111373 |
If you are sued
| Answering a debt lawsuit | In district court, file an answer within 21 days after service of the citation, or within 30 days if discovery requests were served with the petition. The court may grant more time. In justice of the peace court, appear on the trial date; if no trial date is set, file an answer within 10 calendar days of service. JP guide: https://ag.louisiana.gov/Files/Shared/Documents/AGuideToLaJpcCourt.pdf |
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Garnishment and what creditors can't take
| Wage garnishment limit | 75% of weekly disposable earnings is exempt, and never less than 30 times the federal minimum hourly wage per week (prorated for other pay periods). This matches the federal limit. The court issues a judgment fixing the exempt portion, and a $3 processing fee per pay period is taken from the non-exempt amount. Lower exemptions apply to child support (50%) and spousal support (60%). R.S. 13:3921: https://legis.la.gov/Legis/Law.aspx?d=77647 |
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| Money protected in a bank account | No general bank account exemption. Specific funds are protected, including pensions, IRAs and other tax-deferred accounts, health savings accounts (up to the IRS family-coverage annual limit), the federal earned income tax credit and the refundable child tax credit. When a bank is garnished and no opposition is filed, it may turn over $1,000 or less to the sheriff right away, or larger balances 30 days after filing its answer (La. C.C.P. art. 2415: https://legis.la.gov/Legis/Law.aspx?d=111458). Federal benefits deposited directly are protected under 31 CFR Part 212. Source: La. R.S. 13:3881(A)(6), (D) |
| Homestead exemption | Up to $35,000 in value of an owner-occupied homestead (up to 5 acres in a municipality or 200 acres outside one). The exemption covers the full value of the home when the debt arises directly from a catastrophic or terminal illness or injury. It does not apply to mortgages, the purchase price, taxes, and certain other debts. 'Catastrophic or terminal illness or injury' means uninsured medical bills over $10,000 that exceed 50% of the debtor's average annual adjusted gross income for the prior three years. Constitution: https://legis.la.gov/Legis/Law.aspx?d=206362 |
| Vehicle exemption | $15,000 in equity value for one motor vehicle. A second vehicle with up to $15,000 in equity is exempt if the debtor is married or has a licensed-driver child in the household. A vehicle adapted for a household member's disability is exempt up to $20,000 in equity (no more than two exempt vehicles in total). Recently changed: Act 55 of 2026 (HB 135) raised the single-vehicle exemption from $7,500 to $15,000 and the disability-vehicle exemption from $7,500 to $20,000 (enrolled act: https://legis.la.gov/Legis/ViewDocument.aspx?d=1473871). Equity value is based on the JD Power used-car guide retail value. |
| Claiming an exemption | In a wage garnishment, the court enters a judgment fixing what part of the pay is exempt. The creditor must send the debtor written notice that a garnishment petition was filed. A debtor who believes exempt money or property was seized can oppose the garnishment in the court where it is pending. No statewide exemption-claim form or fixed deadline was found. A bank may release garnished funds without a further court order unless it has notice of an opposition (C.C.P. art. 2415). |
| Bankruptcy exemptions | Louisiana is an opt-out state: in bankruptcy, debtors may use only Louisiana exemptions and non-bankruptcy federal exemptions, not the federal bankruptcy exemption list (11 U.S.C. 522(d)). Source: La. R.S. 13:3881(B)(1) |
Debt collectors and interest
| State debt collection law | Yes, in part. Under the Louisiana Consumer Credit Law, a creditor (including an original creditor) may not contact third parties outside the debtor's household about the debt, with limited exceptions. If a debtor in default sends a written cease-contact notice by registered or certified mail, the creditor is limited to one mail notice per month and up to four personal contacts to settle the debt. Source: La. R.S. 9:3562 |
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| Debt collector licensing | No license, but registration is required: any collection agency or debt collector doing business in Louisiana must register with the Louisiana Secretary of State. The Office of Financial Institutions does not regulate collection agencies. OFI statement: https://ofi.la.gov/non-depository/collection-agencies/. The former collection agency licensing law (R.S. 9:3576.1 et seq.) was repealed in 2003. Source: La. R.S. 9:3534.1(B) |
| Medical debt protections | Partial protection only: the homestead exemption covers the full value of the debtor's home when the debt arises directly from a catastrophic or terminal illness or injury. No Louisiana statute limiting medical debt credit reporting or interest was confirmed. Source: La. R.S. 20:1(A)(2)-(3) |
| Interest rate limits | Judicial interest (on amounts sued for and on judgments) is set each year at 3.25 percentage points above the Federal Reserve discount rate on the first business day of October, published by the Commissioner of Financial Institutions. Agreed (conventional) interest generally cannot exceed 12% a year and must be in writing, but this cap does not apply to consumer credit transactions under the Louisiana Consumer Credit Law or to business loans. R.S. 9:3500: https://legis.la.gov/Legis/Law.aspx?d=285199. |
Where to get help in Louisiana
Debt & Collections FAQ
What is the statute of limitations on debt in Louisiana?
10 years for most contract claims ('personal actions'), whether the contract is written or oral, unless a shorter period applies. Debts on money lent and on open accounts have a shorter 3-year period.
How long can a creditor sue on a credit card debt in Louisiana?
3 years for an action on an open account, on money lent, or for unpaid rent.
Does making a payment restart the statute of limitations in Louisiana?
Yes. Prescription (the limitations period) is interrupted when the debtor acknowledges the creditor's right, and a new period begins.
How long does a court judgment last in Louisiana?
A Louisiana money judgment expires 10 years after it is signed (or after it becomes final if appealed). Before it expires, the creditor can revive it by filing a motion with an affidavit that it has not been paid; each revival gives another 10 years, and a judgment can be revived as often as needed.
How much of my wages can be garnished in Louisiana?
75% of weekly disposable earnings is exempt, and never less than 30 times the federal minimum hourly wage per week (prorated for other pay periods). This matches the federal limit. The court issues a judgment fixing the exempt portion, and a $3 processing fee per pay period is taken from the non-exempt amount.
How much money in a bank account is protected from creditors in Louisiana?
No general bank account exemption. Specific funds are protected, including pensions, IRAs and other tax-deferred accounts, health savings accounts (up to the IRS family-coverage annual limit), the federal earned income tax credit and the refundable child tax credit.
What is the homestead exemption in Louisiana?
Up to $35,000 in value of an owner-occupied homestead (up to 5 acres in a municipality or 200 acres outside one). The exemption covers the full value of the home when the debt arises directly from a catastrophic or terminal illness or injury. It does not apply to mortgages, the purchase price, taxes, and certain other debts.
Can a creditor take my car in Louisiana?
$15,000 in equity value for one motor vehicle. A second vehicle with up to $15,000 in equity is exempt if the debtor is married or has a licensed-driver child in the household. A vehicle adapted for a household member's disability is exempt up to $20,000 in equity (no more than two exempt vehicles in total).
What debt collection practices are illegal in Louisiana?
Yes, in part. Under the Louisiana Consumer Credit Law, a creditor (including an original creditor) may not contact third parties outside the debtor's household about the debt, with limited exceptions. If a debtor in default sends a written cease-contact notice by registered or certified mail, the creditor is limited to one mail notice per month and up to four personal contacts to settle the debt.
Do debt collectors need a license in Louisiana?
No license, but registration is required: any collection agency or debt collector doing business in Louisiana must register with the Louisiana Secretary of State. The Office of Financial Institutions does not regulate collection agencies.
What protections apply to medical debt in Louisiana?
Partial protection only: the homestead exemption covers the full value of the debtor's home when the debt arises directly from a catastrophic or terminal illness or injury.
What is the maximum legal interest rate in Louisiana?
Judicial interest (on amounts sued for and on judgments) is set each year at 3.25 percentage points above the Federal Reserve discount rate on the first business day of October, published by the Commissioner of Financial Institutions. Agreed (conventional) interest generally cannot exceed 12% a year and must be in writing, but this cap does not apply to consumer credit transactions under the Louisiana Consumer Credit Law or to business loans.
How do I respond to a debt collection lawsuit in Louisiana?
In district court, file an answer within 21 days after service of the citation, or within 30 days if discovery requests were served with the petition. The court may grant more time. In justice of the peace court, appear on the trial date; if no trial date is set, file an answer within 10 calendar days of service.
How do I stop a garnishment or claim an exemption in Louisiana?
In a wage garnishment, the court enters a judgment fixing what part of the pay is exempt. The creditor must send the debtor written notice that a garnishment petition was filed. A debtor who believes exempt money or property was seized can oppose the garnishment in the court where it is pending.
Which bankruptcy exemptions can I use in Louisiana?
Louisiana is an opt-out state: in bankruptcy, debtors may use only Louisiana exemptions and non-bankruptcy federal exemptions, not the federal bankruptcy exemption list (11 U.S.C. 522(d)).
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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.