Debtors in Louisiana can be exempt from seizures in a Louisiana bankruptcy of equity in their home of $ 25,000.00. Further, if the obligations are related as a direct result of catastrophic or terminal illness or injury, the debtor can claim the full value of the home based on a value one year before seizure in bankruptcy.
It is important to remember that this exemption is available to a person individually or a married couple. However, the exemption is not available if the property is co-owned with another person that is not the spouse of the debtor. Therefore, a debtor could not claim the exemption if they own their property with a friend, girlfriend, boyfriend, relative or child. This can have significant implications of causing a home to be seized by the trustee to provide the proceeds to creditors.
Therefore, persons that co-own their home with someone other than their spouse need to make sure that they disclose this fact to their attorney.
If you have any questions concerning bankruptcy, you should consult an experienced bankruptcy attorney.
Kent S. DeJean