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lilrowo

Bankruptcy and Equity in Home

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I have a question about bk and the equity in a home. I know it's different in each state. In Louisiana the exemption for your home is only 25.000.00. So does this mean if you have more than 25,000.00 of equity in your home, and payments are current, you would have to forfeit it if you file for chapter 7 bankruptcy?

I have read numerous times that you should never pay off unsecure debt by making a home equity loan. It seems that in some states, there's not much choice if you have equity in your home. Is this correct?

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I have a question about bk and the equity in a home. I know it's different in each state. In Louisiana the exemption for your home is only 25.000.00. So does this mean if you have more than 25,000.00 of equity in your home, and payments are current, you would have to forfeit it if you file for chapter 7 bankruptcy?

I have read numerous times that you should never pay off unsecure debt by making a home equity loan. It seems that in some states, there's not much choice if you have equity in your home. Is this correct?

You are in a community property state. Are you married, and if so, are you filing together?

Here are the state bk laws for Louisiana.

http://www.louisianabankruptcylaw.com/

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I am married, so it would be double the exemption, right? I read somewhere that the homestead exemption is 25,000 for Louisiana. It says here, that it's $15,000.00, so that would be $30,000?. We are trying to avoid bk, just trying to get all the facts.

That sure seems like a low amount compared to other states where there is a much bigger exemption.

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Yes, if your file joint bk it would be double. Everywhere I look it is 15,000.

Louisiana Bankruptcy Property Exemptions - Homestead

Property you occupy to $15,000; cannot exceed 160 acres on 1 tract, or on 2 or more tracts if there's a home on 1 tract and a field, garden or pasture on others (husband and wife may not double)

Spouse or child or deceased owner may claim homestead exemption; spouse given home in divorce gets homestead

Louisiana Bankruptcy Property Exemptions - Insurance

Accident, disability or health proceeds or avails

Fraternal benefit society benefits

Group insurance policies or proceeds

Life insurance proceeds or avails, if policy issued within 9 months of filing, exempt only to $35,000

Louisiana Bankruptcy Property Exemptions - Miscellaneous

Property of minor child

Louisiana Bankruptcy Property Exemptions - Pensions

Gratuitous payments to employee or heirs whenever paid

Louisiana Bankruptcy Property Exemptions - Personal Property

Arms, military accoutrements

Bedding, linens and bedroom furniture, chinaware, glassware, utensils, silverware (non-sterling), clothing, family portraits

Musical instruments

Heating and cooling equipment

living room and dining room furniture

Poultry, fowl, 1 cow, household pets

Pressing irons, sewing machine, refrigerator, freezer, stove, washer and dryer

Cemetery plot, monuments

Engagement and wedding rings to $5,000

Louisiana Bankruptcy Property Exemptions - Public Property

Unemployment compensation

AFDC, aid to blind, aged and disabled

Workers Compensation

Crime victim's compensation

Louisiana Bankruptcy Property Exemptions - Tools of Tools

Instruments, books,

Pickup truck (up to 3 tons) or non-luxury auto & utility trailer

Tools needed to work

Louisiana Bankruptcy Property Exemptions - Wages

Minimum 75% of earned but unpaid wages, bankruptcy judge may authorize more for low income debtors

Louisiana Bankruptcy Property Exemptions - Wild Card

None

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Actually compared to some of the mid Atlantic states LA exemptions are quite generous! In DE for example there is NO homestead exemption under Chapter 7 and your dog can be taken and sold off if it's valued over $400! Therefore, in states like these people have to file 13, but oftentimes they still end up with the same result if creditors don't show up in court to assert their rights. IMO, people contemplating a 7 in the future and particularly those who reside in stingy states should neglect all maintenance on their properties so as on the filing date, the property appears as ramshackle as possible.

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Wow, 15K Homestead Exemption?? :shock: CT has a $75K exemption for the same, however, I believe the COL is rather different.

I'm with you, BK7 was a last resort, and my wife and I signed the papers last week with our Attny. Now time to wait for the 341.

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