Bankruptcy in Louisiana
Individuals file for bankruptcy in Louisiana for a number of different reasons. These reasons can involve a lost job, medical expenses that are way too high, failure of a business, as well as other circumstances. Debt really has a way of ruining your life by keeping you a slave. The federal Government has noticed this and that is why there is bankruptcy discharge. Bankruptcy relief just so happens to be a federal law. This means the information individuals find on bankruptcy is pretty much the same from one state to another. Although, there is one large difference and this is the exemptions that are available.
What are Exemptions?
You declare exemptions when you declare bankruptcy in Louisiana. These prevent you from losing certain property and possessions. These possessions can include homestead, insurance, pensions, personal property, public benefits, tools of your trade, wages and various other types of property as well. First off, there is your homestead; this can be found under law section 20:1. When it comes to your homestead, the property that is being occupied to $15,000 cannot be more than 160 acres located on one tract. The husband and wife may not double this.
Overview of Exemptions in Louisiana
The next exemption when declaring bankruptcy in Louisiana can be found in law section 22:558, 22:659, 22:646 and 22:647. These insurance exemptions include fraternal benefits, insurance policies that are group, accident or disability proceeds, and life insurance proceeds. Also exempt is the property of a minor child and this can be found under law section 13:3881A(3).
The next exemption has to do with personal property. Personal property includes the following: military accouterments, linens, bedroom furniture, bedding, glassware, china ware, silverware, clothing, portraits of family, musical instruments, dining room furniture, living room furniture, household pets, fowl, poultry, one cow, freezer, stove, washer, dryer and sewing machine. Personal property exemptions in the state of Louisiana can be found under law section 13:3881A(4).
When filing for bankruptcy in Louisiana, the next exemption discussed will be tools of your trade. The tools of trade exemptions can be found under law section 13:3881A(2). These tools can include books, tools, instrument, autos and trailers that are non-luxury, and a pickup truck that is no more than three tons. As you can see, there are so many exemptions when you are filing for bankruptcy in the state of Louisiana that you really don’t have to worry about losing much. Make sure to consult a bankruptcy attorney who can answer all your bankruptcy related questions.