The Louisiana Homestead Exemption

The Louisiana bankruptcy homestead exemption allows you to protect $35,000 of your home equity; more if your debts were incurred due to a catastrophic or terminal illness or injury.

Updated by , Attorney

If you file for bankruptcy in Louisiana, the Louisiana homestead exemption allows you to protect $35,000 of your home equity. You can save even more if you incur debt due to a catastrophic or terminal illness or injury.

Read on for more about Louisiana's homestead protections for homeowners in bankruptcy, or follow the link for a more complete list of Louisiana bankruptcy exemptions.



Homestead Exemption Amounts in Louisiana

If you file for bankruptcy, Louisiana law allows owners to exempt up to $35,000 of the value of a house or other property covered by the homestead exemption.

Subject to certain limitations, homeowners can also protect the total value of their homestead against debts they incurred because of a catastrophic or terminal illness or injury.

Doubling for Married Couples

In Louisiana, married couples filing jointly for bankruptcy can't double the homestead exemption amount. However, there could be other advantages to filing bankruptcy jointly with your spouse.

The Scope of Homestead Exemptions in Louisiana

In Louisiana, the homestead exemption applies to your house and up to:

  • five acres if you live inside a municipality, or
  • 200 acres if you live outside of a city.

The homestead exemption automatically extends to insurance proceeds for property damage if they are held in a separate escrow account and received on account of a disaster declared by the governor.

Can You Use the Federal Bankruptcy Exemptions in Louisiana?

Some states allow bankruptcy filers to use federal bankruptcy exemptions instead of state exemptions. Louisiana is not one of those states. If you live in Louisiana, you must use Louisiana state exemptions.

Homestead Declarations

In Louisiana, the homestead declaration is automatic. Louisiana residents don't have to file a homestead declaration to claim the homestead exemption in bankruptcy.

Homestead Exemption Rights After Death

In Louisiana, the homestead exemption continues after an owner's death to benefit the surviving spouse and any minor children.

Waiver of Homestead Exemption Rights

Generally, Louisiana residents can waive homestead exemption rights. The waiver must be in writing, signed by the owner, and recorded in the mortgage records of the parish where the property is located. Louisiana is divided into parishes the way other states are divided into counties.

For married couples, both spouses must sign a waiver if they own the property together and aren't separated. Homestead exemption rights can't be waived for debts incurred for medical treatment, medical services, or hospitalization.

Finding Louisiana's Homestead Exemption Statute

You will find Louisiana's homestead exemption in La. Rev. Ann. § 20.1. Louisiana's statutes are online at www.legis.state.la.us under "Louisiana Laws."

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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

Updated April 4, 2022

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