Louisiana
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Though the U.S. bankruptcy code is the same for all states, it includes several regulations that are based on state-specific information. For example, the Chapter 7 means test measures the debtor's income by the median family income in their state. The local rules for each federal bankruptcy court determine how documents should be filed and other aspects of case management. In addition, each state has its own list of exempt property and can determine whether the federal exemptions are available to their residents.

Identification

The federal government is given jurisdiction over bankruptcy in Article I, Section 8 of the U.S. Constitution. For this reason, bankruptcy proceedings are filed at a U.S. Bankruptcy Court. Each state has at least one Bankruptcy Court--Louisiana has three. The Eastern District is based in New Orleans. The Middle District is in Baton Rouge. The Western District holds court in Lafayette, Alexandria, Monroe, Lake Charles and Shreveport but only has clerks in the Lafayette, Alexandria and Shreveport divisions. For more specific information on the addresses of these offices and the parishes they serve, see the Resources section.

Means Test

To file for Chapter 7, a debtor must pass a means test based on the median annual income for their state based on the household size. These official numbers are published annually by the U.S. Census Bureau. In 2009, the median income for a single wage earner in Louisiana was $36,945; for a family of two, $46,741; for three, $52,628; and for four, $66,634. For each additional member of your household in excess of four add $6,900. If the median income is more than your annualized monthly income (average monthly income for the previous three months multiplied by 12), you qualify for Chapter 7 in Louisiana.

Filing

Each district in Louisiana has its own local rules, which are available on their respective websites. It is essential to review these rules prior to filing bankruptcy. For example, the Eastern and Middle districts prefer electronic filing, including the use of an electronic signature to authentic documents. In the Western District, electronic filing is mandatory.

Fees

In all three of Louisiana's districts, a bankruptcy proceeding must be filed with the appropriate filing fee or the documents will not be accepted. A petitioner can request to pay in installments or file for a waiver if the fee presents a hardship, but these requests must be submitted at the time of filing for the documents to be accepted. In the Eastern District, if an installment payment is missed, the debtor has 10 days to make the payment or the case will be dismissed.

Exemptions

Louisiana does not allow bankruptcy petitioners to use federal exemptions. Instead, the state's exemptions allow for a $25,000 homestead exemption subject to acreage limits, unless the bankruptcy is due to catastrophic or terminal illness or injury, in which case the full value of the homestead is exempt. Insurance proceeds, pensions, public wages and the property of a minor child are all exempt to some degree. Personal property of the debtor that is exempt to some degree includes arms, military accoutrements, bedding, dishes, glassware, appliances, furniture, musical instrument, and family portraits. Tools of a trade needed for work are exempt, as are 75 percent of disposable weekly earnings.

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