Filing Chapter 7 Bankruptcy in Louisiana (2026)
Reviewed by DocDraft Legal Team · Louisiana · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Louisiana. Louisiana is an opt-out state: you must use Louisiana's exemptions under La. R.S. 13:3881 and the homestead statute La. R.S. 20:1, and you cannot elect the federal 11 U.S.C. 522(d) list. Louisiana is also a community-property state, so property and debts acquired during marriage are generally shared, and a filing affects both spouses' community property. This page explains the $35,000 homestead, the $7,500 vehicle exemption, wage and retirement protection, the means-test median income, and the three federal bankruptcy courts where Louisianians file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or alimony.
Does Louisiana use state or federal bankruptcy exemptions?
Louisiana is an opt-out state. Under La. R.S. 13:3881 and related law, a debtor filing in Louisiana must use Louisiana's exemptions and cannot elect the federal 11 U.S.C. 522(d) list. Because Louisiana is a community-property state, a filing generally reaches both spouses' community property, which affects how exemptions apply.
Can I keep my house if I file Chapter 7 in Louisiana?
Often yes. Under La. R.S. 20:1, Louisiana's homestead exemption protects up to $35,000 of equity in your home on up to 5 acres in a city or town, or 200 acres elsewhere. If the debt arose from a catastrophic or personal injury, the homestead is unlimited. If your equity fits, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Louisiana?
Usually yes if your equity is modest. Under La. R.S. 13:3881(A)(7), Louisiana exempts up to $7,500 of equity in one motor vehicle used by you or your family, with a separate $7,500 for a vehicle modified for a person with a disability. If your car equity is at or below that figure, the vehicle is protected.
What is the income limit to file Chapter 7 in Louisiana?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Louisiana are $59,447 for one earner, $72,348 for two, $84,602 for three, and $103,628 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Louisiana's Opt-Out Rule, the $35,000 Homestead, and Community Property
Louisiana is a bankruptcy opt-out state. A debtor filing here must use Louisiana's exemptions under La. R.S. 13:3881 and the homestead statute La. R.S. 20:1, and cannot choose the federal 11 U.S.C. 522(d) set. The headline homestead protects up to $35,000 of equity in a home you occupy, on up to 5 acres in a city or town or 200 acres elsewhere; where the underlying debt arose from a catastrophic or personal injury, the homestead is unlimited. Spouses cannot double the homestead. Louisiana exempts up to $7,500 of equity in one motor vehicle under La. R.S. 13:3881(A)(7), and protects household goods, clothing, tools of the trade, 75 percent of disposable wages under La. R.S. 13:3881(A)(1), and tax-qualified retirement accounts under La. R.S. 13:3881(D). Louisiana does not offer a general cash wildcard exemption. Louisiana is also a community-property state, so property and debts acquired during a marriage are generally shared and a filing reaches the community property of both spouses. Louisianians file in one of three federal bankruptcy courts: the U.S. Bankruptcy Court for the Eastern, Middle, or Western District of Louisiana, based on where they have lived for most of the prior 180 days.
Relevant Laws
Louisiana Homestead Exemption (La. R.S. 20:1)
Sets Louisiana's homestead exemption at up to $35,000 of equity in a home you occupy, on up to 5 acres in a city or town or 200 acres elsewhere, and unlimited where the debt arose from a catastrophic or personal injury. This is the exemption that lets many Louisiana homeowners keep their house in Chapter 7.
Louisiana General Exemptions and Opt-Out (La. R.S. 13:3881)
Louisiana's core exemption statute, covering wages, the motor vehicle, household goods, tools of the trade, and retirement accounts. Louisiana is an opt-out state, so a bankruptcy debtor must use these Louisiana exemptions and cannot elect the federal 11 U.S.C. 522(d) list.
Louisiana Motor Vehicle and Wage Exemption (La. R.S. 13:3881(A))
Exempts up to $7,500 of equity in one motor vehicle under subsection (A)(7), a separate $7,500 for a disability-modified vehicle, and 75 percent of disposable weekly earnings under subsection (A)(1). Louisiana does not provide a general cash wildcard exemption.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Louisiana has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Louisiana Chapter 7 Exemption Table
Homestead
La. R.S. 20:1: up to $35,000 of equity in a home you occupy, on up to 5 acres in a city or town or 200 acres elsewhere. Unlimited where the debt arose from a catastrophic or personal injury. Spouses cannot double the homestead on the same property.
Motor vehicle
La. R.S. 13:3881(A)(7): up to $7,500 of equity in one motor vehicle used by you or your family, plus a separate $7,500 for a vehicle modified to assist a person with a physical disability. Equity above the figure may be reachable by the trustee.
Wildcard
Louisiana does not offer a general cash wildcard exemption. Unlike states that let you protect any property up to a set dollar amount, Louisiana confines exemptions to specific categories such as the homestead, vehicle, household goods, tools of the trade, wages, and retirement accounts.
Personal property
La. R.S. 13:3881(A)(4): household goods, furniture, clothing, and family portraits, plus one firearm, cooking and heating equipment, and a limited allowance for the tools, instruments, and books needed to carry on your trade or profession under La. R.S. 13:3881(A)(2).
Wages
La. R.S. 13:3881(A)(1): 75 percent of your disposable weekly earnings are exempt, and a court may exempt more for low-income debtors. This mirrors the federal wage-garnishment cap and protects the bulk of take-home pay from creditors and the bankruptcy estate.
Retirement and tools
La. R.S. 13:3881(D): tax-qualified retirement plans, including IRAs, pensions, and profit-sharing plans, are generally exempt. Tools, instruments, and books needed for your trade or profession are exempt under La. R.S. 13:3881(A)(2). ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law.
Suggested Compliance Checklist
Confirm the current Louisiana means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Louisiana median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $59,447 for one, $72,348 for two, $84,602 for three, and $103,628 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for your Louisiana district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Value your assets and apply the Louisiana exemptions
Before preparing your schedules days after startingValue your home, vehicle, and personal property, and match them to Louisiana's exemptions: the La. R.S. 20:1 homestead of up to $35,000 and the $7,500 vehicle exemption under La. R.S. 13:3881(A)(7). Account for community property shared with a spouse, since Louisiana is a community-property state.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the correct court: the Eastern, Middle, or Western District of Louisiana, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Louisiana means-test median income | Check your household size against the U.S. Trustee Louisiana median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $59,447 for one, $72,348 for two, $84,602 for three, and $103,628 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for your Louisiana district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Value your assets and apply the Louisiana exemptions | Value your home, vehicle, and personal property, and match them to Louisiana's exemptions: the La. R.S. 20:1 homestead of up to $35,000 and the $7,500 vehicle exemption under La. R.S. 13:3881(A)(7). Account for community property shared with a spouse, since Louisiana is a community-property state. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the correct court: the Eastern, Middle, or Western District of Louisiana, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under La. R.S. 20:1, Louisiana's homestead exemption protects up to $35,000 of equity in a home you occupy, on up to 5 acres in a city or town or 200 acres elsewhere. If the debt arose from a catastrophic or personal injury, the homestead is unlimited. Spouses cannot double this exemption on the same property.
Louisiana exempts 75 percent of your disposable weekly earnings under La. R.S. 13:3881(A)(1), and the automatic stay stops new wage garnishment the moment you file. Earnings you have not yet received are not part of the bankruptcy estate, so wages you earn after filing are generally safe.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or alimony, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
You file in the federal bankruptcy court for your area: the U.S. Bankruptcy Court for the Eastern, Middle, or Western District of Louisiana. The Eastern District covers the New Orleans region, the Middle District the Baton Rouge region, and the Western District the Shreveport, Lafayette, and Lake Charles regions. You file where you have lived for most of the prior 180 days.
Louisiana is a community-property state, so property and debts acquired during a marriage are generally shared. When one spouse files Chapter 7, the community property of both spouses is generally part of the estate and is protected only up to Louisiana's exemption limits, such as the $35,000 homestead under La. R.S. 20:1, which spouses cannot double.
Other Louisiana guides
Ready to Draft Your Document?
Get AI-powered legal documents with attorney review included. Plans start at $39.99/mo.