Louisiana Debt Relief

Louisiana Credit Card Debt law allows a comparatively short time for creditors to file suit for unpaid open-ended credit card accounts. This time limit is called the Statute of Limitations (SOL). It begins the day of the first missed payment and ends 3 years later. However, if a debtor makes a partial payment, the SOL begins again from the date of the payment. Louisiana defendants are given 30 days to answer a summons, unless the summons stipulates otherwise. Answers should be sent by certified mail to ensure timely delivery and avoid default judgment.

Judgment Enforcement

Louisiana judgments can be enforced for 10 years and are renewable in 10-year terms indefinitely. Interest on the judgment is 9% per year and subject to change. Filing the judgment in the Parish where the debtor’s real property is located will place a lien lasting 10 years. The lien must be reinscribed before the 10 years expires to continue. The creditor may also levy non-exempt personal property and execute garnishment of wages.

In general, debtors may claim homestead up to $25,000. Special circumstances may allow exemption of the entire value, such as a catastrophic injury or terminal illness. Wages may be garnished up to 25% of disposable income, but retirement funds are not included as income.

Louisiana consumers should be careful when signing credit agreements because the state recognizes “judgment by confession” clauses, contract language that binds the debtor to an admission of debt (judgment) without a court ruling.

Debt Settlement

Consumers should look into Debt Settlement as a way to structure a more flexible payment plan instead of allowing courts to decide a payment schedule for them. Instead of paying judgment interest, consumers can make interest free payments and avoid bankruptcy.