Why Is My Louisiana Homestead Exemption Lower In My Bankruptcy?
By Kevin Gipson, New Orleans Bankruptcy Attorney on Oct 12, 2007 in Bankruptcy Practice and Procedure, General Bankruptcy Information, Louisiana, Protecting Assets In Bankruptcy, Role Of The Lawyer
In her article entitled: “Homestead Laws” Bankruptcy Law Network contributor Pamela L. Stewart discusses the purpose of homestead laws as the term in generally used in most states.
The term has a different meaning in Louisiana.
In Louisiana the term Homestead has two meanings both to do with exemptions. This can frequently cause confusion when dealing with a potential bankruptcy client.
The homestead exemption that Louisiana residents are more likely familiar with is a $75,000.00 exemption from taxes on real estate.
Generally speaking, the home, farm or ranch in which a Louisiana resident resides is exempt from property taxes on the first $75,000.00 of its value.
However, Louisiana also has a $25,000.00 homestead exemption for individuals filing for bankruptcy. This means that the first $25,000.00 of equity in a house is exempt from being administered (used to pay creditors) by the trustee in the bankruptcy.
Louisiana has many other exemptions that protect your assests from creditors, but the exemptions must be claimed. An experienced consumer bankruptcy attorney can help you with this and other issues if you are considering bankruptcy.
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