Louisiana Bankruptcy Guide

Complete guide to filing bankruptcy in Louisiana, including current median income requirements, Louisiana's homestead exemption up to $35,000, bankruptcy court information for all three Louisiana districts, and how to find qualified bankruptcy attorneys throughout Louisiana.

Louisiana Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in Louisiana, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$49,914	$4,160
2 people	$62,729	$5,227
3 people	$68,076	$5,673
4 people	$78,879	$6,573
5 people	$87,879	$7,323
6 people	$96,879	$8,073

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your Louisiana Eligibility

Louisiana Bankruptcy Exemptions

Louisiana does not allow bankruptcy filers to choose federal exemptions. All Louisiana bankruptcy filers must use Louisiana state exemptions. Louisiana's exemption system is unique due to Louisiana's civil law heritage (based on Napoleonic Code rather than common law).

Louisiana Homestead Exemption

Up to $35,000 of equity (or up to 160 acres).

Louisiana's homestead exemption protects up to $35,000 of equity in your primary residence. The exemption applies to land and buildings up to 160 acres (if outside a municipality) or up to 5 acres (if within a municipality, city, town, or village).

The property must be your principal residence and be owned and occupied by you at the time of filing bankruptcy. Louisiana's homestead exemption provides reasonable protection for most homeowners, particularly those in rural areas with significant acreage.

Louisiana does not allow choice of federal exemptions, so the $35,000 state homestead is your only option (which is higher than the federal $27,900 for single filers but lower than federal $55,800 for married couples).

Louisiana Vehicle Exemption

Up to $7,500.

Louisiana allows you to protect up to $7,500 of equity in one motor vehicle. This is a generous vehicle exemption that protects most financed vehicles. If you owe more than your vehicle is worth or have equity within this limit, you can typically keep it by continuing to make loan payments.

Louisiana State Exemptions

Louisiana bankruptcy exemptions include:

• Homestead: $35,000 (160 acres rural or 5 acres municipal)
• Vehicle: $7,500
• Household Goods and Furnishings: Furniture, clothing, family portraits, musical instruments, arms, military accoutrements, and wearing apparel (no dollar limit specified)
• Clothing: All necessary clothing
• Wedding Rings: $5,000
• Engagement Rings: $5,000
• Burial Plot: Unlimited
• Tools of Trade: Tools, instruments, books, $7,500 for non-wage earners
• Wildcard: None (no general wildcard exemption in Louisiana)
• Wages: 75% of earned but unpaid wages

Other Protected Assets

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government retirement benefits under federal law
• Public Benefits: Social Security, unemployment, workers' compensation, veteran's benefits, disability benefits, public assistance
• Life Insurance: Life insurance proceeds if policy prohibits use to pay creditors; group insurance policies
• Health Aids: All health aids
• Education Savings: Louisiana 529 education savings plan (START Saving Program)
• Personal Injury Awards: Certain personal injury recoveries
• Seafood Vessels and Equipment: $10,000 for commercial fishermen

Filing Bankruptcy in Louisiana

Chapter 7 Bankruptcy in Louisiana

Chapter 7 bankruptcy is commonly filed throughout Louisiana. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in Louisiana, you must pass the means test by having income below the Louisiana median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

Louisiana's exemptions—$35,000 homestead, $7,500 vehicle exemption, and generous household goods protections—provide good protection for most Louisiana residents' assets while obtaining debt relief through Chapter 7.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in Louisiana

Chapter 13 bankruptcy allows Louisiana residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly beneficial if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is especially useful in Louisiana if your income is too high to qualify for Chapter 7, if you have non-exempt assets you want to protect (particularly if you have more than $35,000 in home equity), or if you have priority debts like recent taxes or past-due child support. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Courts in Louisiana

Louisiana is divided into three federal bankruptcy court districts:

Eastern District of Louisiana

Main Courthouse: New Orleans

Covers southeastern Louisiana including New Orleans, Baton Rouge, the River Parishes, and the southeastern portion of the state. This is the most populous district, with New Orleans as the major metropolitan area.

The Eastern District handles bankruptcy cases from the New Orleans metropolitan area, Baton Rouge, and surrounding parishes.

Middle District of Louisiana

Main Courthouse: Baton Rouge

Covers central Louisiana including Baton Rouge and surrounding parishes in the central region of the state.

Western District of Louisiana

Main Courthouses: Shreveport, Lafayette, Lake Charles, Alexandria

Covers western Louisiana including Shreveport, Lafayette, Lake Charles, Alexandria, and the western portion of the state including Acadiana.

Court divisions: Shreveport Division (northwestern Louisiana), Lafayette Division (Acadiana region), Lake Charles Division (southwestern Louisiana), and Alexandria Division (central western Louisiana).

You must file in the district where you have lived for the greater part of the 180 days before filing. Visit the U.S. Courts website for specific court locations, filing procedures, and local rules for each Louisiana district.

Louisiana Residency Requirements

To use Louisiana bankruptcy exemptions, you must have been domiciled (legally residing) in Louisiana for at least 730 days (2 years) before filing. If you've lived in Louisiana for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

Louisiana does not allow the choice of federal exemptions, so once you meet the residency requirement, you must use Louisiana state exemptions.

Find a Louisiana Bankruptcy Attorney

Most Louisiana bankruptcy attorneys offer free initial consultations. Given the complexity of bankruptcy law and Louisiana's unique civil law system, consulting with an experienced Louisiana bankruptcy attorney is highly recommended.

What a Louisiana Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Maximize Louisiana exemptions to protect your assets
• Navigate Louisiana's unique civil law and community property rules
• Calculate whether you qualify for Chapter 7 using the Louisiana means test
• Navigate Louisiana-specific bankruptcy procedures and local court rules
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in Louisiana

Chapter 7 bankruptcy attorney fees in Louisiana vary by location:

• New Orleans metro area: $1,100 to $1,600 plus $338 filing fee
• Baton Rouge area: $1,000 to $1,500 plus $338 filing fee
• Shreveport, Lafayette areas: $950 to $1,450 plus $338 filing fee
• Lake Charles, Alexandria, Monroe: $900 to $1,400 plus $338 filing fee
• Other Louisiana cities and rural areas: $800 to $1,300 plus $338 filing fee

Chapter 13 attorney fees typically range from $2,800 to $4,000 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Many Louisiana attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

Louisiana-Specific Bankruptcy FAQs

Can I keep my house in Louisiana bankruptcy?

It depends on your equity. Louisiana's $35,000 homestead exemption protects homes with equity up to this amount. If you have $35,000 or less in equity, your home is fully protected in Chapter 7 bankruptcy. Louisiana also protects up to 160 acres of rural land or 5 acres within a municipality. If your equity exceeds $35,000, you may need to file Chapter 13 to keep your home.

Can I keep my car in Louisiana bankruptcy?

Yes, in most cases. Louisiana allows you to exempt up to $7,500 of equity in one motor vehicle, which is one of the more generous vehicle exemptions in the country. Most Louisiana residents with car loans have equity below this amount and can keep their vehicles by continuing to make payments through a reaffirmation agreement.

Does Louisiana allow federal bankruptcy exemptions?

No, Louisiana is one of the states that opted out of the federal exemption system. All Louisiana filers must use Louisiana state exemptions. However, Louisiana's exemptions are generally reasonable, with a $35,000 homestead (higher than federal $27,900 for single filers) and $7,500 vehicle exemption (higher than federal $4,450).

How does Louisiana's community property law affect bankruptcy?

Louisiana is a community property state, meaning most assets and debts acquired during marriage are owned equally by both spouses. In bankruptcy, this means: (1) community debts may be discharged even if only one spouse files, (2) community property may be part of the bankruptcy estate, (3) both spouses' income may be considered for means test purposes even if only one files. Louisiana bankruptcy attorneys can help navigate these community property complexities.

Can I protect my fishing boat and equipment in Louisiana bankruptcy?

Yes, Louisiana has a special exemption for commercial fishermen. Seafood catch vessels and related equipment are protected up to $10,000. This recognizes Louisiana's significant commercial fishing and seafood industry. If you're a commercial fisherman, discuss this exemption with your Louisiana bankruptcy attorney to ensure proper protection of your livelihood.

How does Hurricane damage affect bankruptcy in Louisiana?

Louisiana residents who suffered Hurricane damage may have insurance claims or FEMA assistance. These funds are typically protected as they're meant to restore your property. However, timing matters—large cash settlements could affect your bankruptcy if not properly exempted. If you received Hurricane-related payments, consult a Louisiana bankruptcy attorney before filing to ensure proper protection and timing.

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