Bankruptcy exemptions allow a debtor to protect property needed to work and live after a bankruptcy proceeding. Louisiana announced a new COVID19 bankruptcy exemption effective July 1, 2020. The following is exempt from seizure under any writ, mandate, or process whatsoever, except as otherwise provided:
Any consumer stimulus payments directly received by the debtor pursuant to federal law enacted to provide for COVID-19 relief, except for seizure of spousal or child support payments. This paragraph shall not apply to payments received by the debtor as unemployment compensation. (LSA-R.S. 13:3881(A)(10).)
For more information, see Louisiana Bankruptcy Exemptions.
Avoid property loss by verifying all bankruptcy exemption amounts through independent research or by consulting with a local bankruptcy attorney.
Effective date: June 2020