Louisiana Bankruptcy Laws

The state of Louisiana is divided into three bankruptcy districts: Louisiana Eastern Bankruptcy Court, Louisiana Middle Bankruptcy Court and Louisiana Western Bankruptcy Court. These courts serve the entire state of Louisiana. Most people in Louisiana file under either Chapter 7 or Chapter 13. Only businesses and those with an extreme amount of assets and debt file Chap 11 BK. According to the la-legal.com website chapter 12 provides a simplified reorganization for family farmers, similar to Chapter 13, where the debtor retains his property and pays creditors out of future income.

Louisiana Bankruptcy Exemptions
Of all the areas of law, bankruptcy is probably the most consistent from one state to another. Since bankruptcy relief is under federal law, information about bankruptcy is pretty much the same from one state to another except for the exemptions you can claim. These can vary by quite a bit from state to state. Exemptions are laws passed by every state that allow you to protect certain types of your property from your creditors when you file bankruptcy. According to the Lawyers.com website, under Louisiana bankruptcy laws, you may keep:

• Property you occupy to $25,000
• Motor vehicle to $7,500
• One utility trailer
• One firearm to $500
• Clothing, bedding, linen, chinaware, nonsterling silverware, glassware, furniture, appliances and equipment for required therapy
• Family portraits
• Arms and military accoutrements
• Musical instruments
• Poultry, fowl and one cow
• Family pets
• Wedding rings to $5,000
• Federal earned income tax credit
• Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtor
• Group insurance policies or proceeds
• Property necessary to exercise trade, calling or profession limited to tools, instruments, books and $7,500 for one motor vehicle, one utility trailer and one firearm up to $500.
• Pensions, tax-deferred arrangements and annuity contracts
• Property dedicated for cemetery purposes
• Proceeds of life insurance policy

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.