What Creditors Can't Take in Louisiana
Money, home and vehicle exemptions that protect your property from creditors in Louisiana.
Short answer: 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)
| 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) |
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| 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. |
| 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) |
Where to get help in Louisiana
More Louisiana debt & collections
- Statute of Limitations on Debt in Louisiana
- Wage Garnishment in Louisiana
- How to Respond to a Debt Collection Lawsuit in Louisiana
- Medical Debt Protections in Louisiana
- All Louisiana debt & collections rules
FAQ
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).
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)).
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.