Debt Collection Laws in Louisiana
If you're dealing with debt collection in Louisiana, here's what actually protects you: a cap on how much of your paycheck can be garnished, a base amount of home equity and bank funds creditors can't touch, and a deadline after which a debt lawsuit generally can't succeed. Current as ofJuly 2026 — sourcing for each section is linked below.
Louisiana's 2026 debt outlook
Bankruptcy filings in Louisiana ran 10,423 in the 12 months ending March 2026, versus 9,484 the year before (+9.9%), per official U.S. Courts data. See the full 51-state filing ranking.
Serious mortgage delinquency (90+ days late) in Louisiana sits at 1.7%, trending toward roughly 2.1% by the end of 2026 (rising fastest). See the full 51-state outlook and methodology.
Debt collection complaints to the CFPB from Louisiana residents ran 4,765 so far in 2026, versus 3,489 over the same window in 2025 (+37%). See the full state-by-state surge ranking.
How much of my paycheck can be garnished in Louisiana?
Louisiana protects 75% of your disposable weekly earnings from an ordinary judgment creditor — which works out to the same 25% cap most states use, just written as an exemption instead of a limit. A floor equal to 30 times the federal minimum wage is always protected regardless of the math.
Support obligations run on a different, harsher scale: only 50% of your disposable earnings is protected against a child support garnishment, and only 60% against spousal support — meaning a creditor pursuing support arrears can reach a much bigger share of your paycheck than one collecting an ordinary credit card judgment.
Can a creditor take money from my bank account in Louisiana?
Louisiana doesn't protect a flat dollar amount sitting in your bank account the way some states do. Instead, specific categories of income — federal Social Security and disability benefits, Louisiana unemployment compensation, and the federal earned income and child tax credits among them — stay exempt, but only as long as you can trace those dollars back to their source.
This is a common point of confusion: once exempt income is deposited and mixed with other money in the same account, courts have found it can lose its exempt status unless you can specifically trace it. If you're relying on this protection, keeping exempt deposits in a separate account makes that tracing far easier. The exemptions themselves come from several different sources rather than one statute — Social Security and disability protection is federal law (42 U.S.C. § 407), Louisiana's unemployment-benefit exemption is its own statute (La. R.S. 23:1693), and the earned income/child tax credit exemption is part of La. R.S. 13:3881, which also carves out an exception: that clause's stimulus-payment protection specifically does not extend to unemployment compensation.
Is my home protected from creditors in Louisiana?
Louisiana protects $35,000 of equity in your home from an ordinary creditor — rising to the full value of the home if the debt arose from a catastrophic or terminal illness or injury.
Don't confuse this with Louisiana's property-tax homestead exemption: it generally exempts $7,500 of assessed value, commonly corresponding to $75,000 of market value, from specified property taxes. That tax measure is separate from the $35,000 creditor exemption.
How long can a debt collector sue me in Louisiana?
Louisiana calls this liberative prescription. Current Civil Code provisions, reorganized effective January 1, 2025, preserve different periods for particular obligations; an open account commonly has a 3-year period, but a signed writing does not automatically make every consumer debt a 10-year claim.
| Debt type | Statute of limitations |
|---|---|
| Open account / credit card | 3 years |
| Other contract or instrument | Depends on the claim and governing provision |
Which period applies is fact-specific. Promissory notes and other negotiable instruments can have a deadline under Louisiana's Uniform Commercial Code rather than the Civil Code's general rules, so the document and the creditor's legal theory both matter.
Does Louisiana have its own debt collection law beyond the federal FDCPA?
Louisiana's own consumer credit law limits how often a collector can contact you after you've sent a written cease-contact notice — one mailed notice a month and up to four personal contacts, and only if none of them threaten unauthorized action.
Section 9:3562 applies only within the transactions and actors covered by the Louisiana Consumer Credit Law. The cap begins after the required registered or certified notice; it is not a general collection-agency licensing law or a universal rule for every debt.
Where can I find free or low-cost legal help in Louisiana?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in Louisiana, a good starting point is the state bar's lawyer referral service or one of the legal aid organizations below — both can point you to self-help court resources even if you don't qualify for free representation.