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Bankruptcy FAQ

Which of my property is exempt in Chapter 7 bankruptcy?

On Behalf of | Oct 19, 2022 | Chapter 7 Bankruptcy

If you are contemplating bankruptcy in Alexandria, LA, or the surrounding areas, you probably have concerns about what property, if any, you can keep after filing for Chapter 7 bankruptcy.

Some of your assets may fall under the exempt classification, allowing you to keep them. Here are some examples of exempt assets under Louisiana law.

1. Personal property

In Louisiana, you can keep certain personal property, like tools of your trade, clothing, electronics, furniture and other household items.

2. Homestead

If your primary residence is on less than five acres of land in the city or 200 acres in the country, the homestead exemption allows you to keep up to $35,000 of the equity in your home.

3. Vehicle

Louisiana exemption law allows you to keep up to $7,500 in equity in one vehicle per household.

4. Wages

Up to 75% of your wages are safe from seizure. Alternatively, you can keep up to 30 times the federal minimum wage if this amount is greater than three-fourths of your wages.

5. Government benefits

Government-issued benefits, like Social Security and VA disability, are exempt from forfeiture in bankruptcy.

Filing for Chapter 7 bankruptcy is a serious decision, but knowing what property you can keep through the process may put your mind at ease and help you plan for the future. Talking to a qualified bankruptcy attorney can be a good first step if you’re questioning your options.