In Louisiana, a judgment creditor can garnish no more than 25% of your disposable weekly wages — state law (La. R.S. 13:3881) exempts at least 75% of disposable earnings, which mirrors the federal 25% cap under the Consumer Credit Protection Act. Louisiana also gives homeowners a homestead exemption of up to $35,000 of equity in the home and surrounding land (La. R.S. 20:1), and it shields tax-qualified retirement accounts, Social Security, unemployment benefits, and a long list of household necessities. Importantly, Louisiana does not let debtors choose the federal bankruptcy exemption list — if you live here, the Louisiana state exemptions are what protect you, both inside and outside of bankruptcy.
The wage exemption: only 25% can be garnished
Under La. R.S. 13:3881(A)(1), a creditor with a money judgment may seize the lesser of (1) 25% of your disposable earnings for that week, or (2) the amount by which your disposable earnings exceed 30 times the federal minimum wage. "Disposable earnings" means your pay after legally required deductions such as taxes and Social Security — not after voluntary deductions. Because Louisiana tracks the federal formula rather than offering a more generous percentage, the practical result is that 75% of your take-home pay is protected from ordinary judgment creditors.
Different rules apply to certain debts. Court-ordered child support and alimony can reach a larger share of wages, and unpaid taxes and federal student loans follow their own collection rules that are not limited by the 25% consumer cap. Louisiana has no state minimum wage of its own, so the federal minimum wage controls the 30-times calculation; confirm the current federal minimum wage with the U.S. Department of Labor, because that figure can change.
The homestead exemption
Louisiana's homestead exemption protects your primary residence up to $35,000 in value, covering the home, the land it sits on (up to 160 acres), and the buildings on it. The home must be owned and occupied by you as your bona fide residence. If the debt that produced the judgment arose from a catastrophic or chronic illness or injury, Louisiana law increases this protection — potentially to the full value of the homestead — so the cause of the debt matters.
The homestead exemption is not absolute. It does not protect you against a mortgage you signed on the property, against contractors with a properly recorded lien for work on the home, against unpaid property taxes, or against debts you specifically waived the homestead for. Because Louisiana is a community property state, property acquired during marriage is generally owned by both spouses, and community property can be reached for community debts — an important wrinkle when only one spouse is sued.
Retirement accounts and life insurance
Tax-qualified retirement plans are strongly protected in Louisiana. La. R.S. 13:3881(D) and related provisions exempt funds in or payable from pensions, 401(k) plans, IRAs, Roth IRAs, and other qualified plans from seizure by creditors. A common limitation is that recent contributions — money you moved into the account shortly before the creditor acted — may not enjoy full protection, so the timing of deposits can matter.
Louisiana also has unusually broad protection for life insurance and annuity proceeds and cash value, which are largely shielded from the policyholder's and beneficiary's creditors under the state insurance code. If your savings are tied up in these products, they are generally out of a creditor's reach.
Public benefits: Social Security, unemployment, workers' comp
Several income sources are protected by a combination of federal and Louisiana law:
- Social Security and SSI — exempt from most creditors under federal law (42 U.S.C. § 407). When these funds are direct-deposited, federal rules require your bank to automatically protect up to two months' worth of benefits from a garnishment freeze.
- Unemployment compensation — exempt under Louisiana law (La. R.S. 23:1693).
- Workers' compensation benefits — exempt under La. R.S. 23:1205.
- Public assistance benefits such as SNAP and state welfare payments are also protected.
These protections do not always stop a bank from freezing a mixed account, which is why keeping exempt benefits in a separate account — and being ready to prove their source — makes claiming the exemption far easier.