Bankruptcy Exemptions in Louisiana: Protecting Your Assets in Chapter 7

February 15, 2024

Bankruptcy Exemptions in Louisiana: Protecting Your Assets in Chapter 7

Filing for bankruptcy can be a daunting and stressful process, but it does not have to mean the loss of everything you own. In Louisiana, residents filing for Chapter 7 bankruptcy are entitled to certain exemptions that protect their assets from being seized by creditors. Understanding these exemptions is crucial to ensuring that you keep what is rightfully yours during this trying time.


What types of assets are exempt in Chapter 7 bankruptcy?


One of the most important things to know about filing for Chapter 7 bankruptcy in Louisiana is which assets are exempt from seizure. Some of the most common exemptions include your primary residence (up to $35,000), personal property (up to $5,000), retirement accounts such as IRAs and 401(k)s, and tools of your trade (up to $2,500). It is important to note that these exemption amounts may change over time and should always be verified with a bankruptcy attorney.


Can I keep my home after filing for Chapter 7 bankruptcy?


Many people worry about losing their homes when filing for Chapter 7 bankruptcy. The good news is that Louisiana offers a homestead exemption that allows you to keep your primary residence up to a certain value. As mentioned above, this exemption is currently set at $35,000 but may change in the future. If the equity in your home exceeds this amount, you may still be able to keep it by agreeing to pay back some of your debt through a repayment plan.


At De Leo Law Firm, LLC we can assist the Louisiana public with bankruptcy matters.


Navigating the complex world of bankruptcy law can be challenging without the help of an experienced attorney. At De Leo Law Firm, LLC we understand how overwhelming this process can be and are here to help guide you every step of the way. Our team has extensive experience working with clients facing bankruptcy and can help you understand your rights, exemptions, and options for a fresh start.


In addition to bankruptcy filings, we also offer legal services for debt settlement negotiations and foreclosure defense. Our goal is to help our clients regain control of their finances and build a stronger financial future.


Filing for Chapter 7 bankruptcy does not have to mean losing everything you own. Louisiana residents are entitled to certain exemptions that protect their assets from being seized by creditors. Understanding these exemptions is crucial to ensuring that you keep what is rightfully yours during this trying time. At De Leo Law Firm, LLC we are here to help guide you through the complex process of filing for bankruptcy or negotiating debt settlements. Contact us today to schedule a consultation and learn more about how we can assist with your legal needs.


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