Deciding to file for bankruptcy in Louisiana is never an easy choice. Doing so may be your last resort after exhausting all other possible options to pay back your debts. When you file for bankruptcy, you are allowed to keep certain property known as exemptions. You are allowed to keep those exemptions while you make a fresh start.
What bankruptcy exemptions may you qualify for?
According to Louisiana’s bankruptcy laws, there are certain bankruptcy exemptions you can qualify for as long as you have resided in the state for at least two years. Exemptions refer to certain types of property that cannot be seized when you file bankruptcy. They include the following:
- Home equity: You can protect up to $35,000 worth of equity in your home if it’s used as your primary residence and it sits on less than 5 acres in the city or less than 200 acres in the country.
- Personal property: Any personal property such as jewelry, electronics and household items are considered exemptions in bankruptcy as long as they are less than $13,400 in value.
- Motor vehicle equity: You are entitled to motor vehicle equity of up to $7,500 after filing bankruptcy. In most cases, it doesn’t matter whether your car is new or old.
- Financial benefits: Financial benefits such as workers’ compensation, Social Security, VA disability and other government benefits are considered exemptions during bankruptcy. Things like alimony and child support are usually exempt. Retirement accounts, college savings and other similar financial benefits are exempt as well.
How do you start a bankruptcy case?
In order to file for bankruptcy, it’s important to know whether you can file Chapter 7 or Chapter 13. An attorney who has experience in bankruptcy law may explain the difference between these types of bankruptcy and identify the right one for you. Filing can be complex for the average person, so you may want a lawyer’s advice and assistance when dealing with your creditors and their attorneys.