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What are bankruptcy exemptions in Louisiana?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Louisiana's exemptions are governed by both the state constitution and statutes; no general wildcard makes Louisiana less flexible than many states.

1. Opt-Out State — La. R.S. § 13:3881(A)(8)

Louisiana opted out. Debtors must use Louisiana exemptions.

2. Homestead — La. Const. art. XII, § 9; La. R.S. § 20:1

  • $35,000 equity for individuals.
  • $60,000 if debtor is 65+ OR is a catastrophically injured debtor.
  • Acreage limit: 5 acres in municipality, 200 acres rural.

    • 3. Personal Property — La. R.S. § 13:3881

    No general wildcard — must use specific categories:

  • Household goods, furniture, appliances, books, jewelry, instruments: full value (subsection (A)(4)(a)) — Louisiana is unique in protecting full household value.
  • Wedding/engagement rings: full value if owned more than 5 years (subsection (A)(4)(b)).
  • One firearm: $500.

    • 4. Motor Vehicle — La. R.S. § 13:3881(A)(7)

  • $7,500 equity in one motor vehicle (used by debtor or family for transportation).
  • $15,000 if vehicle is necessary for trade.

    • 5. Tools of Trade — La. R.S. § 13:3881(A)(2)

  • Tools, instruments, books necessary for trade: full value (no dollar cap) — uniquely generous.
  • One utility trailer.

    • 6. Wages — La. R.S. § 13:3881(A)(1)

    75% of disposable earnings OR 30x federal minimum wage exempt (matches CCPA).

    7. Retirement Accounts — La. R.S. § 13:3881(D)

  • ERISA plans, IRAs, Roth IRAs: fully exempt.
  • Contributions within 1 year of filing: subject to scrutiny.

    • 8. Insurance — La. R.S. § 22:912

    Life insurance proceeds — fully exempt.

    Cash value — $35,000 ($75,000 if owned for over 9 months).

    9. Annuities — La. R.S. § 22:912

    Annuity contract owned by debtor: $35,000 cash value.

    10. Public Benefits — La. R.S. § 23:1693, § 23:1205, federal Social Security

    Unemployment, workers' comp, Social Security, public assistance — fully exempt.

    11. Personal Injury Proceeds — La. R.S. § 13:3881(A)(8)

    Compensation for personal bodily injury — fully exempt.

    12. Crime Victim Compensation — La. R.S. § 46:1816

    Fully exempt.

    13. College Savings — La. R.S. § 17:3096

    Louisiana START Program: fully exempt.

    14. Tenancy by the Entirety

    Louisiana, as a community property state, does NOT recognize tenancy by the entirety. Community property is generally subject to the debts of either spouse.

    15. Civilian/Military Compensation

    Various La. R.S. provisions exempt military pay, certain civil service benefits.

    16. Domicile Requirement

    730-day rule under 11 U.S.C. § 522(b)(3).

    17. Strategy

    Louisiana's structure rewards careful categorization:

  • Full household goods and tools of trade are unusual benefits.
  • Lack of wildcard limits flexibility.
  • Married couples filing jointly may double the homestead but face community property complications.

    • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You need to navigate Louisiana's community property rules in bankruptcy
    • Your home equity exceeds $35,000 (or $60,000 if 65+/catastrophically injured)
    • You're an entrepreneur and want to maximize the unlimited tools-of-trade exemption
    Related Statutes & Laws
    • La. Const. art. XII, § 9
    • La. R.S. § 20:1
    • La. R.S. § 13:3881
    • La. R.S. § 22:912

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.