Louisiana Bankruptcy Exemptions in Chapter 7 and 13 Bankruptcy Cases (Part 1).

24 Feb Louisiana Bankruptcy Exemptions in Chapter 7 and 13 Bankruptcy Cases (Part 1).

Perhaps the question I hear the mostfrom homeowners that are considering bankruptcy is whether or not they are going to be able to keep their home.

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.

For more information on the subject of exemptions, please see the following BLN contributions by Karen Oakes, Andy Miofsky and Cathy Moran.

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I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

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