24 Feb Louisiana Bankruptcy Exemptions in Chapter 7 and 13 Bankruptcy Cases (Part 1).
In most cases the answer is yes.
The property that you as a debtor can keep when you file for bankruptcy depends upon the exemption laws of the state in which you reside. Some states rely on federal exemptions, some states have their on unique exemptions, and some states allow a choice between using the federal or state exemptions. It is not possible to over stress the need to use the correct exemptions for your state.
Louisiana has its own set of exemptions that must be used when filing for bankruptcy.
This article will discuss the exemption available for the house in which you reside. A future article will discuss the Louisiana bankruptcy exemptions for other types of property.
This real estate exemption for your house, known as a homestead exemption, protects a Louisiana citizen’s residence and the land on which that residence is located, from seizure and sale under any legal proceeding whatsoever.
This exemption protects up to thirty-five thousand dollars of the equity in the homestead. For most debtors with a mortgage, this exemption is sufficient to permit the debtor to file a Chapter 7 bankruptcy. For those with over thirty-five thousand dollars in equity, and also for those that are behind on a house note, a Chapter 13 bankruptcy may be necessary.
In cases of debts arising directly because of a catastrophic or terminal illness or injury, the exemption applies to the full value of the homestead.
A catastrophic or terminal illness or injury is an illness or injury which creates uninsured obligations to health care providers of more than ten thousand dollars and which are greater than fifty percent of the annual adjusted gross income of the debtor.
Your home is your most important investment! Contact an experienced consumer bankruptcy attorney to assist you in protecting your home and other assets.
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