What is exempt from bankruptcy in Louisiana?

In the state of Louisiana, debtors filing Chapter 7 can claims exemptions exclusively under the exemptions list derived from the Louisiana Revised Statutes. Debtors filing in the state of Louisiana, however, are precluded from using the federal bankruptcy exemption list. Before determining what exemptions are applicable in your case, it is important to consult with a bankruptcy lawyer to first confirm your eligibility to file Chapter 7 (per federal means tests and other standards) and confirm the state of residency applicable to your Chapter 7 case (subject to federal bankruptcy law and state residency requirements).

The following list only briefly outlines some of the most notable exemptions allowed under Louisiana’s Revised Statutes, and in practice, the only reliable and definitive method of determining all the exemptions applicable to your individual Chapter 7 filing will be through consulting directly with a Louisiana bankruptcy lawyer.

• Homestead exemption up $15,000 with limits on acreage set at 160 acres

• Most health and life insurance benefits and avails are exempt, including group insurance and fraternal benefit society benefits

• Pension benefits are mostly exempt, including ERISA qualified benefits up to one (1) year prior to filing Chapter 7

• A wide and eclectic list of personal property and household items are exempt

• Most public benefits, including workers compensation and unemployment benefits, are exempt

• Most tools of trade are exempt

• At least seventy-five (75)  percent of earned, but unpaid wages are exempt in Louisiana, but the courts may approve a higher percentage in the event of low income earnings

• There is no wildcard exemption in Louisiana

For more information and case=specific insight about your Chapter 7 filing, consult with a Louisiana bankruptcy attorney before taking any action, especially any action to shield assets or place them into an exempt category. These attempts will most likely be considered a fraudulent conveyance and severely complicate the bankruptcy process, and in limited instances, may prevent protection under bankruptcy laws.