Louisiana Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside Louisiana's Statutes Of Limitations. Louisiana phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The Louisiana Fair Debt Collection Consumer Practices Guide summarizes Louisiana's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
Louisiana Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under Louisiana’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under Louisiana Debt Exemption Law!
Louisiana Statutes
Louisiana has opted out of federal bankruptcy exemptions. Louisiana.
Revised Statutes Annotated § 13:3881(B)(1).
Wages: Louisiana Revised Statutes Annotated § 13:3881.
Homestead: Louisiana Revised Statutes Annotated § 20:1. See Louisiana Constitution article 12, § 9.
Tangible personal property: Louisiana Revised Statutes Annotated § 13:3881.
Benefits, retirement plans, insurance, judgments, and other intangibles: Louisiana Revised Statutes Annotated § 13:3881.
Louisiana Debt Statutes of Limitation
Your debt may have expired under Louisiana’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the Louisiana Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
Louisiana Debt Statutes of Limitation
Contracts: 10 years.
Open accounts: 3 years.
Lawsuits, which are filed but not pursued, become null three years after the last action taken.
Judgment: 10 years, and if not renewed within the ten years become a nullity.
Louisiana Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under Louisiana’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under Louisiana law.
Louisiana Wage Garnishment Procedural Requirements
A writ of fieri facias may be executed by directing the seizure and sale of property of the judgment debtor, as a judgment for the payment of money. Louisiana. Code Civil. Procedure. Ann. art. 2291. The judgment creditor, by petition and after issuance of a writ of fieri facias, may cause a third person to be cited as a garnishee to declare under oath what property he has in his possession or under his control belonging to the judgment debtor and in what amount he is indebted to him, even though the debt may not be due. He may require the third person to answer categorically and under oath the interrogatories annexed to the petition. The seizure shall take effect upon the service of the petition, citation, and interrogatories.
A garnishment against a financial institution shall not be continuing in nature and the garnishee need only respond as to property of the judgment debtor that the garnishee has in his possession or under his control at the time the garnishment interrogatories are served upon him. When the garnishee is a bank, savings and loan association, or credit union, the garnishee may continue to pay checks and drafts drawn on the judgment debtor's deposit accounts maintained with the garnishee that are presented for payment in the ordinary course of business on the day garnishment interrogatories are served upon the garnishee or on the next business day thereafter, without incurring any liability or obligation in favor of the judgment creditor or any third party. La. Code Civil. Procedure. Ann. art. 2411.
The sheriff shall serve upon the garnishee the citation and a copy of the petition and of the interrogatories, together with a notice that a seizure is thereby effected against any property of or indebtedness to the judgment debtor. Service shall be in the manner provided for service of citation, except that if the garnishee is an individual, service must be personal. The garnishee shall file his sworn answers to the interrogatories within fifteen days from the date of service. La. Code Civil. Procedure. Ann. art. 2412.
Interest Rate at which Judgments Accrue The legal rate of interest between Sept. 11, 1981 and Jan. 1, 1988, is 12%. Thereafter, the legal rate of interest is one point over average prime as defined and as calculated Oct. 1 of each year, subject always to a cap of 14% and floor of 7%. La. Civil. Code Ann. art. 2924.
Legal interest attaches from date of judicial demand on all judgments sounding in damages "ex delicto." La. Rev. Statute. Ann. 13:4203. Legal interest on any claim for personal injury or wrongful death against the Statutee or its political subdivisions shall accrue at six percent per annum from the date of service is requested following judicial demand until the judgment thereon is signed by the trial judge.
Legal interest accruing subsequent to the signing of the judgment shall be at the rate as detailed above. La. Rev. Statute. Ann. 13:5112. When the object of the performance is a sum of money, damages for delay in performance are measured by the interest on that sum from the time it is due, at the rate agreed by the parties or, in the absence of agreement, at the rate of legal interest. La. Civil. Code Ann. art. 2000.
Louisiana (Debt Collector) Call Recording Law
Under Louisiana State and Federal Call Recording Laws, you could record the actual phone conversation with a debt collector in your efforts to stop debt collectors from calling! Louisiana is a one party consent state, meaning only the permission of one person on the call is necessary to record. YOU ALONE can be considered the one party to give consent, thus you do not need a debt collectors permission to record the phone conversation in the state of Louisiana.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.
