Louisiana Bankruptcy Laws

Louisiana has opted out of federal bankruptcy exemptions under La. R.S. 13:3881(B)(1). Debtors must use Louisiana state exemptions exclusively — federal exemptions are not available.

Protects up to $35,000 of equity in the debtor's primary residence (same for single and married filers — cannot double). Acreage limits: up to 5 acres in a city/town or up to 200 acres outside. Exception: catastrophic or terminal illness allows full value of property (as of 1 year before filing).

One motor vehicle is protected up to $7,500 in equity.

Household goods, furnishings, clothing, and appliances: up to $7,500 total. Wedding and engagement rings are included in the household goods total. Tools and instruments for trade/profession have varying limits. Arms and military accouterments are protected.

75% of disposable earnings are exempt from garnishment (the greater of 75% of disposable earnings or 30 times the federal minimum wage per week). Social Security, veterans benefits, unemployment, workers' compensation, and pensions are fully exempt.