LOUISIANA BANKRUPTCY LAW

Louisiana Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Louisiana Bankruptcy Statistics: In Louisiana, in 2009, 18,780 bankruptcies were filed. Business bankruptcies accounted for 869 or 4.63% and personal bankruptcies accounted for 17,911 or 95.37% of the total filings.

Louisiana State Bankruptcy Exemptions

Homestead

The home (“homestead”) exemption is limited to $25,000. However, if the debt is the result of a terminal injury or illness, the exemption is limited to the full value of the property, as determined one year before filing. The property cannot exceed 5 acres in a city or town, or 200 acres if located outside a city or a town. The spouse or children of a deceased owner, or an ex-spouse given the home in a divorce may claim the homestead exemption. Additionally, any sale proceeds of the residence are exempt when filing for bankruptcy. Louisiana defines “homestead” to include property you occupy and disaster relief insurance proceeds for exempt property.

Personal Property

The following expenses or items are exempt in their entirety in Louisiana:

1. Burial plot
2. Disaster relief insurance proceeds for exempt property
3. Spendthrift trusts
4. Arms, military gear
5. Bedding, dishes, glassware, utensils and non-sterling silverware
6. Clothing
7. Bedroom, living room, and dining room furniture
8. Family pictures, musical instruments
9. Heating and cooling equipment
10. Refrigerator, freezer, stove, washer and dryer, iron, sewing machine
11. Household pets
12. 1 cow, poultry

The following expenses or items are exempt up to a specified limit in Louisiana:

1. Motor vehicle limited to $7,500
2. Motor vehicle modified for disability limited to $7,500
3. Engagement or wedding rings limited to $5,000

Pension

The following individuals’ and their survivors’ pension benefits are exempt when filing for bankruptcy in Louisiana:

1. Voting Registrars
2. Teachers
3. State employees
4. Sheriffs
5. School employees
6. Police officers
7. Parochial and municipal employees
8. Louisiana University employees
9. Judges
10. Firefighters
11. District Attorneys
12. Court clerks
13. Assessors

The following pension types are exempt or partially exempt when filing for bankruptcy in Louisiana:

1. ERISA benefits, government and private pensions, retirement plans, IRAs and Keoghs if contributions are made over a year prior to filing for bankruptcy
2. Employer gifts or bonus payments to employees

Insurance

The following insurance types are entirely or partially exempt when filing for bankruptcy in Louisiana:

1. Annuity contract proceeds
2. Group life insurance proceeds or policies
3. Fraternal benefit society
4. Health, accident, or disability proceeds
5. Life insurance proceeds or avails-but, if the life insurance policy was issued within 9 months of filing for bankruptcy, the proceeds are exempt to no more than $35,000

Public Benefits

The following public benefits are exempt when filing for bankruptcy in Louisiana:

1. Crime victims’ compensation
2. Assistance to blind, aged, or disabled persons
3. Unemployment compensation
4. Workers’ compensation
5. Public assistance

Tools of the trade

This is a separate exemption. The following items have been considered tools of the trade in the state of Louisiana:

1. Tools, instruments, books and one firearm if needed for business; limited to $500

Wages

In Louisiana, the greater of 75% or more of disposable weekly earnings, or thirty times the federal hourly minimum wage.

Miscellaneous

The following miscellaneous benefits are exempt when filing for bankruptcy in Louisiana:

1. Property of a minor child

Wildcard: No.

Federal Exemptions: No, debtors are not allowed to take federal exemptions when filing for bankruptcy in Louisiana.

Louisiana Bankruptcy Court:

United States Bankruptcy Court, Eastern District of Louisiana

United States Bankruptcy Court, Western District of Louisiana

United States Bankruptcy Court, Middle District of Louisiana