In Louisiana, there are state regulations for property exemptions that can be retained even while a Chapter 7 bankruptcy code is being filed. Knowing what the exemptions are in your state can make a huge difference in what assets you are able to protect. Louisiana uses a state exemption list and does not allow for federal exemptions. This means that that if you are filing bankruptcy in Louisiana, you can only use the exemptions allowed in that state.
How to Keep Your Car
Most people are hopeful that they will be able to keep at least one of their vehicles even if they decide to file Chapter 7 bankruptcy. In Louisiana, being allowed to keep your vehicle while filing bankruptcy is a likely possibility.
- A motor vehicle with a value of up to $7,500 may be retained.
How to Keep Your Home
Another very valuable asset that many people are afraid of losing if they file for bankruptcy is their home. The laws involving the homestead exemptions in Louisiana are conditional and depend on how many acres of land are owned.
- A home may be exempt for up to $15,000 as long as the house is positioned on 160 acres or less on one (1) tract (piece of property) or 2 tracts if the house is located on one piece of property and there are pastures and/or gardens on the other tract.
- Homestead exemption amount cannot be doubled even if husband and wife are filing for bankruptcy jointly.
Filing Schedule C of a Bankruptcy Petition
To be able to retain the exempt property allowed by the Louisiana bankruptcy code, a schedule C form must be filed in the bankruptcy petition. Descriptions have to be listed on the schedule C form of the property that exemptions are being sought for and what statute numbers they fall under for exemption. If the form is not filled out correctly or if the exemptions are not allowed by Louisiana law, the property will not be exempt from liquidation.
Ask a Lawyer for Advice
Knowing the laws in your state is the first step to filing for Chapter 7 bankruptcy. The exemption laws and forms that must be filled out can be extremely confusing, so it is vital to your financial situation that an experienced attorney is consulted. An attorney that specializes in the protection of assets during the bankruptcy process can help ensure that your protection is maximized.
