When filing for bankruptcy, one of the biggest concerns for many people is whether they will be able to keep their property.
In Louisiana, debtors can protect their property with certain exemptions that go along with the bankruptcy process.
State and federal exemptions
In Louisiana, we use state exemptions. State exemptions include allowances for a family’s homestead, personal property, and tools of trade. Homestead exemptions allow a debtor to protect their primary home up to a certain value. Personal property exemptions include exemptions for household goods, clothing and jewelry. Tools of trade exemptions protect tools, equipment and other items that the debtor needs in order to keep working.
Homestead exemption
According to a Loyola University Law School document, debtors are allowed to claim a homestead exemption of up to $35,000. This means that as long as the equity in the debtor’s main home is not more than $35,000, the debtor will be able to keep their home during and after the bankruptcy process.
Personal property exemption
Debtors in Louisiana may claim a personal property allowance of several thousand dollars worth of household goods, clothing and jewelry. Precious family heirlooms and other personal effects are safe as long as they are less valuable than the legal limits